MIRA INFORM REPORT
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Report Date : |
05.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SAVANI EXPORTS |
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Registered Office : |
Junagadha Porbandar Highway, Tal Manavadar, Dist Junagada Pajod 362620
Gujrat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1987 |
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IEC No.: |
2406003931 |
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Legal Form : |
Partnership concern with an unlimited liability of the partner. |
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Line of Business : |
Manufacture and Exporter of
Cotton bales. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 20000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subjects is a well-established and reputed concern having track. Partners
are reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payment are usually and as per
commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
Junagadha Porbandar Highway, Tal Manavadar, Dist Junagada Pajod 362620
Gujrat, India |
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Tel. No.: |
91-2874-244540 / 244541 |
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Mobile No.: |
91-9825071302 |
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Fax No.: |
91-281-2455188 |
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E-Mail : |
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Website : |
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Area : |
15000 Sq.ft |
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Location : |
Owned |
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Branches : |
101,Star Apartment, Amin Marg, Rajkot 630 001 |
PARTNERS
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Name : |
Vithaldas K. Savani |
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Designation : |
Partner |
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Name : |
Chmpaben V. Savani |
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Designation : |
Partner |
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Name : |
Mansiben Mayurbhai Savani |
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Designation : |
Partner |
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Name : |
Geetaben Kishorebhai Savani |
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Designation : |
Partner |
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Name : |
Geetaben Gopaldas Savani |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of cotton bales. |
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Exports : |
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Products : |
Raw cotton |
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Countries : |
Pakistan |
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Terms : |
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Selling : |
Cash / Credit of 30 days |
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Purchasing : |
Cash |
GENERAL
INFORMATION
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Customers : |
End User |
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No. of Employees : |
Total :47 (Office:7, Factory:40) |
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Bankers : |
Union Bank of India Manavadar Branch, Junagadh Union Bank of India Race Course Branch, Rajkot, Gujrat |
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Facilities : |
Group of Facilities upto 40.000 Millions |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
Bharat Kiran Associates |
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Address : |
Junagadh |
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Associates/Subsidiaries : |
Savani Brothers: Junagadha Pgrbandar, Highway Tal Manavadar, Dist Junagada Pajod 362620
Gujrat Savani Industries: Junagadha Pgrbandar, Highway Tal Manavadar, Dist Junagada Pajod 36
2620 Gujrat |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 5.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 5.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2006 |
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Sales Turnover |
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60.000 |
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Group Turnover : Rs: 140.000 Millions
LOCAL AGENCY
FURTHER INFORMATION
Subject produces Shankar 6 and BT cotton Quality. It can produce 1200 Cotton bales Per day.
Trade References- Local
Maharaja Shree Umaid Mills Limited , Rajasthan
Vardhman Spas & Wvs Mills Limited, Haryana
As Per Web Site:
Company
Karsandas Gokaldas & Co., a family enterprise, is operational in the
business of cotton ginning and trading since 1950. The company was founded by
their late grandfather Mr. Karsandas with ginning capcity of 20 bales per day
and now is running with 300 bales per day. At present, the company has state of
the art, modern ginning and pressing plant located at Pajod, 12 kms from
Manavadar (second largest Cotton ginning centre of Gujarat State) in Junagadh
District of Gujarat state.
Most notably, they have improved the quality parameters in last few years with
new machinery for both ginning and pressing and as a result they are able to
offer to their buyers contamination free quality raw cotton. This enables them
to increase spinning efficiency.
They are very proud of the success and growth that they have shared with their
suppliers and buyers over the last 50 years. They are equally pleased to be
able to look back through their history in the knowledge that the company's
tradition has always been one of absolute integrity. In today's diverse and
multi-cultural world they firmly believe that their unparalleled reputation is
their greatest asset.
At Savani Exports, they encourage high value of business ethics and
uncompromising quality standards that satisfies their buyers and business
partners. No matter how difficult the market conditions are they stick to their
words. This is the reason why the position of trust Savani Exports enjoys in
the world's cotton industry none and they firmly believe that their
unparalleled reputation is their greatest asset.
Savani Exports maintain the quality of cotton as following manner.
Packing standard
Quality control purchase
Quality control production
Quality tesing practice
Raw cotton word to be included
20 times
Business practices
Packing Standard :
Each bale is packed in high quality cotton cloth, fully coverd on all
sides, strapped with high quality junk free wire.
Quality Control at Purchase of Seed Cotton:
Their highly experienced, dedicated team of purchasers procures best
quality seed cotton directly from farmers, many of them have been dedicated to
us since many years.
Quality control at processing:
As the seed cotton arrives at their factory, they ensure it is
contamination free and is passed through pre cleaning process. While heaping seed
cotton all labors wear full clothes and cover head. At ginning process there is
no labors involved as theirs is fully automated plant.
Quality Testing Practice:
It has been their practice to get one bale tested from each lot of 50
bales, to ensure consistent quality.
Savani Exports produces Shankar 6 and BT cotton which are two of the
most popular cotton quality brands all over the world. Here is the comparison
table of various cotton quality brands based on key parameters:
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Shankar 6 |
BT cotton |
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Staple length 28 mm + |
Staple length 28 mm + |
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3.5 to 4.5 mic. |
3.5 to 4.5 mic. |
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Strength : 25 to 29 |
Strength : 25 to 29 |
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Uniformity: 45 to 48 |
Uniformity: 45 to 48 |
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Trace: 2-3% |
Trace: 2-3% |
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Moisture: 5-7% |
Moisture: 5-7% |
Production Facility
Pre-Cleaning
Post-Cleaning
Ginning
Pressing
Packaging
Transportation
Warehouse
All the packaged goods ready to be sent are stored in large warehouses to
ensure that the cotton remains intact.
Ginning Process
The ginning plant can produce 1200 cotton bales per day with a 24hrs processing
capability. Production of cotton bales begins with selection of raw cotton.
Selection of quality of cotton plays a crucial role in determining the quality
of cotton bales being produced. Vaibhav Industries deploy 25 selectors for
selecting raw material from cotton markets located all over Gujarat. The
company has laid out a high benchmark for selection of cotton and a variation
of more than 25% is sent for rejection.
Once the raw material is approved it is being dumped at specified location from
where the cotton is being absorbed by high capacity Pneumatic suction System.
The raw material from here is sent for cleaning with two types of machines:
Pre-Cleaners
Post-Cleaners
Pre-Cleaning
Pre-clearners are cylindrical rotating system which… In pre-cleaning the cotton
balls, trush, leafy materials like stick and small stones are removed from the
raw cotton.
Pre-Cleaners take out the cotton seeds out of the raw material. The seeds are
segregated and sent to a separate processing plant to manufacture cotton seed
oil.
Post-Cleaning
Post Cleaners remove all the dust particles and impurities contain in the cotton.
This cotton is now ready for ginning and Pressing.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.49 |
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UK Pound |
1 |
Rs.85.71 |
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Euro |
1 |
Rs.58.53 |
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 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
YES |
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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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46 |
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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