MIRA
INFORM REPORT
|
Report Date : |
14.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
CHANDANA BROTHERS TEXTILES AND JEWELLERS PRIVATE LIMITED |
|
|
|
|
Registered Office : |
UG1 to UG5, MCH No.1-2-166 to 193, Bhuvana Towers, Beside Manju
Theatre, S.D. Road, Secunderabad-500003, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
11.02.2004 |
|
|
|
|
Com. Reg. No.: |
01-42631 |
|
|
|
|
CIN No.: [Company Identification No.] |
U36999AP2004PTC042631 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Trader, Exporter and Importer of Sarees and Textile Items, Jewellerys |
RATING &
COMMENTS
|
MIRA’s 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 100000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track.
Directors are reported as experienced, respectable and resourceful
businessmen. Their trade relations are fair. Financial position is satisfactory.
Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
UG1 to UG5, MCH No.1-2-166 to 193, Bhuvana Towers, Beside Manju
Theatre, S.D. Road, Secunderabad-500003, Andhra Pradesh, India |
|
Tel. No.: |
91-40-27892828/ 2525 |
|
Fax No.: |
91-40-2789-2999 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
92130 Sq. ft. |
|
Location : |
Leased |
DIRECTORS
|
Name : |
Mr. Chandana Mohan Rao |
|
Designation : |
Chief Managing Director |
|
Address : |
Plot 4 and 5, Kousalya Estate, Near Juluri Vajramma Function Hall,
Kharkana, Secunderabad |
|
Date of Birth/Age : |
20.01.1941 |
|
Date of Appointment : |
11.02.2004 |
|
|
|
|
Name : |
Mr. A. Satyanarayana |
|
Designation : |
Director |
|
Address : |
Plot 4 and 5, Kousalya Estate, Near Juluri Vajramma Function Hall,
Kharkana, Secunderabad |
|
Date of Birth/Age : |
14.01.1974 |
|
Date of Appointment : |
11.02.2004 |
|
|
|
|
Name : |
Mr. J. Rama Rao |
|
Designation : |
Director |
|
Address : |
H.No.16-2-147/48/5, Anand Nagar Colony, New malakpet, Hyderabad, India |
|
Date of Birth/Age : |
12.10.1963 |
|
Date of Appointment : |
11.02.2004 |
|
|
|
|
Name : |
Mr. M. Venkataramana |
|
Designation : |
Director |
|
Address : |
H. No.53-33-16, KRM Colony, Behind LIC Qtrs. Visakhapatnam |
|
Date of Birth/Age : |
12.10.1966 |
|
Date of Appointment : |
11.02.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
|
Mr. Chandana Mohan Rao |
675000 |
|
Mr. J. Rama Rao |
100000 |
|
Mr. M. Venkatramana |
100000 |
|
Mr. A. Satyanarayana |
100000 |
|
Mr. J. Nagamani |
100000 |
|
Mr. M.V. Padmavathi |
100000 |
|
Mr. C. Subbalakshmi |
225000 |
|
Ms. A. Sunitha Kumari |
100000 |
BUSINESS DETAILS
|
Line of Business : |
Trader, Exporter and Importer of Sarees and Textile Items, Jewellerys |
|
|
|
|
Products : |
Antique Jewellery, Necklaces, Bangles, Bracelets, Rings, Aravanki,
Hand Drawn Designs and Sarees |
GENERAL
INFORMATION
|
No. of Employees : |
About 200 |
|
|
|
|
Bankers : |
State Bank of India, Commercial Branch, Hyderabad |
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
PSN Ravishankar & Associates Chartered Accountants |
|
Name : |
Flat 205, B-Block, II Floor, Kushal Towers, Khairatabad, Hyderabad |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/- each |
Rs.15.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/- each |
Rs.15.000
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 |
|
15.000 |
11.662 |
|
|
2] Share Application Money |
|
4.662 |
3.000 |
|
|
3] Reserves & Surplus |
|
10.040 |
0.535 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
29.702 |
15.197 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
77.978 |
27.516 |
|
|
2] Unsecured Loans |
|
27.700 |
10.657 |
|
|
TOTAL BORROWING |
|
105.678 |
38.173 |
|
|
DEFERRED TAX LIABILITIES |
|
0.986 |
0.802 |
|
|
|
|
|
|
|
|
TOTAL |
|
136.366 |
54.172 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
58.514 |
24.768 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.979 |
3.485 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
|
|
|
Sundry Debtors |
|
|
|
|
|
Cash & Bank Balances |
|
208.757 |
81.247 |
|
|
Other Current Assets |
|
|
|
|
|
Loans & Advances |
|
|
|
|
Total
Current Assets |
|
208.757 |
81.247 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Provisions |
|
|
|
|
Total
Current Liabilities |
|
133.021 |
56.988 |
|
|
Net Current Assets |
|
75.736 |
24.259 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
1.137 |
1.660 |
|
|
|
|
|
|
|
|
TOTAL |
|
136.366 |
54.172 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
|
450.706 |
357.568 |
|
|
Other Income |
|
9.648 |
0.294 |
|
|
Total Income |
|
460.354 |
357.862 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
16.354 |
5.529 |
|
|
Provision for Taxation |
|
3.414 |
1.320 |
|
|
Profit/(Loss) After Tax |
|
12.940 |
4.209 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Interest |
|
5.834 |
4.883 |
|
|
Depreciation & Amortization |
|
3.192 |
2.110 |
|
Total Expenditure |
|
9.026 |
6.993 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
|
2.81 |
1.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
3.55 |
1.54 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
6.12 |
5.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.55 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
8.04 |
6.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.57 |
1.42 |
LOCAL AGENCY
FURTHER INFORMATION
Website Details :
Chandana Brothers is a house hold name
in Andhra Pradesh for textiles over three decades. It stands for traditional
silk and fashion wear-sarees, chudidhars, Punjabi dress etc for every
auspicious and event in the lives of Andhra people of all classes. Chandana
Brothers is synonymous with wedding and other traditional ceremonies of south
Indian people; it is a bye world for quality variety and competitive price- a
one point super market for all taste, needs and pockets.
THE COMPANY
The
Showroom "CMR Exclusive" is established by "Chandana Brothers
Textiles & Jewellers Private Limited, A private limited company
incorporated under the Companies Act, 1956 with the main objective of trading
in Textiles, ready-mades and Jewellers. The showroom promoted by the company is
a large departmental Textile and Jewellery showroom and is located at the
commercial hub of twin cities of Hyderabad and Secunderabad.
The "Chandana Brothers" Group belonging to Chandana Mohan Rao
established 6 Textile & Jewellery showrooms at various places like, Patny
Center, Ameerpet, Malakpet in Hyderabad, and Jagadamba Centre at Visakhapatnam and
Nellore, and al! the showrooms have been doing brisk business in their
respective places. During the year 2002-03 the Group has established one
prestigious Shopping Mall by name "CMR Shopping Mall"(Cb Shopping
Mall) at Visakhapatnam with 60,000 SFT operating area spread over 5 floors. The
Shopping Mall alone has done business of about Rs.350 millions for one full
year of operations (December, 2003 to December, 2004). Presently the Group
turnover of "Chandana Brothers Group" belonging to Chandana Mohan Rao
BACKGROUND OF PROMOTERS:
The promoters of the company belong to
"Chandana Brothers" Group operating at various places in the state of
Andhra Pradesh. They have been in the business of textiles, clothes and
readymade garments since 3 decades. Moreover, since the past 6 years they have
been into Jewellery business and have established themselves in this business
also.
Chandana Mohan Rao is the entrepreneur
behind the big business success of chandana brothers retail business born in
Rajahmundry in 1943, he hails from Chandana Family, traditionally associated
with textiles as a vocation. Naturally he has inherited a strong commercial
acumen in the field, in a way born into it. His modesty at believes at his
immense hands on experience and his gentle manner hide his organization skills
and innovative approanes, gathered from his father who was a certified master
in tailoring, his grand father who was an overseer with TATA'S and his great
grand father who was an engineer under the famous Engineer Sir Arthur Cotton.
Chandana Mohan Rao has learnt his business art and craft the hard way. He
started his own first shop of textiles in 1966 in Rajahmundry and ever since
has built Chandana Business net-work brick-by brick. It is an amazing story of
hard work, perseverance and worldly wisdom, resulting in 40 retail outlets of
Chandana Brothers allover Andhra Pradesh. Chandana Mohan Rao is a restless
always aspiring to achieve greater heights of success in the retail market of
textiles and Jewellery. C M R super markets are the strategic springboards
conceived and developed by him based on stability of experience and challenges
of innovation in the market. C M R is al ready perceived as unique brand name
of quality silks and reliable Jewellery meeting traditional requirement and
modern tastes.
C M R shop has an ultra modern
ambience of elegance and friendliness for the new educated customer
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.17 |
|
UK Pound |
1 |
Rs.85.58 |
|
Euro |
1 |
Rs.58.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|