MIRA
INFORM REPORT
|
Report Date : |
28.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN WRITING INSTRUMENTS PRIVATE LIMITED |
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Registered Office : |
1213,
Maker Chamber V, 221, Nariman Point, Mumbai -
400 021, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.01.1991 |
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Com. Reg. No.: |
11-59815 |
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CIN No.: [Company
Identification No.] |
U36991MH1991PTC059815 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI06058D |
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PAN No.: [Permanent
Account No.] |
AAAC11987R |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturers, producers, processors, traders, importers, exporters,
dealers, suppliers and agents in ball point tips, refills, pens and all other
writing instruments. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 430000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
1213,
Maker Chamber V, 221, Nariman Point, Mumbai -
400 021, |
|
Tel. No.: |
91-22-22825687 / 22846598 /
22825687 / 22846599 / 22872472 |
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Fax No.: |
91-22-22840494 |
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E-Mail : |
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Area : |
Leased |
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Factory 1 : |
H-50, Nashik Industrial Area, MIDC, Satpur, |
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Area : |
Owned |
DIRECTORS
|
Name : |
Mr. Omprakash P. Bhartia |
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Designation : |
Director |
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Address : |
64, Hari Bhavan, 1st
Floor, |
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Date of Birth/Age : |
24.08.1950 |
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Date of Appointment : |
15.01.1991 |
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Name : |
Mr. Shivprakash Bhartia |
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Designation : |
Director |
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Address : |
64, Hari Bhavan, 1st
Floor, |
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Date of Birth/Age : |
12.11.1957 |
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Date of Appointment : |
15.01.1991 |
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Name : |
Mr. Laxmidevi Bhartia |
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Designation : |
Director |
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Address : |
64, Hari Bhavan, 1st
Floor, |
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Date of Birth/Age : |
02.08.1925 |
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Date of Appointment : |
15.01.1991 |
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Name : |
Mr. A. S. Ukalkar |
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Designation : |
Director (Nominee of SICOM) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Omprakash P. Bhartia |
|
4,870 |
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Mr. Shivprakash P. Bhartia |
|
4,870 |
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Mrs. Laxmidevi P. Bhartia |
|
18,370 |
|
Omprakash Bhartia (HUF) |
|
5,700 |
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Mrs. Vidyadevi Bhartia |
|
7,800 |
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Mr. S. P. Bhartia (HUF) |
|
5,700 |
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Mrs. Ritudevi Bhartia |
|
7,800 |
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TOTAL |
|
55,110 |
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Category |
|
Percentage of
Holding |
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Directors or relatives of directors |
|
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers, producers, processors, traders, importers,
exporters, dealers, suppliers and agents in ball point tips, refills, pens
and all other writing instruments. |
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Products : |
Ball Point Tips |
PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
|
Ball Point Tips |
Gross |
|
|
8500000 |
GENERAL INFORMATION
|
No. of Employees : |
125 |
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Bankers : |
Ř
Oriental Bank of Commerce, B-1, Matru
Ashish, Ř
The State Industrial & Investment
Corporation of Maharashtra Limited, Nirmal, 1st Floor, Mumbai –
400 021, Ř
ICICI Bank |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. L. Bhuwania & Company Chartered Accountants |
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Address : |
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Tel. No.: |
91-22-22061869 (3 Lines) / 2209 0362 |
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Fax No.: |
91-22-22061879 |
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E-Mail : |
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Associates/Subsidiaries : |
w
Kamla Knitting Works Private Limited w
Indian Adhesives & Writing
Instruments Private Limited w
Frontline Roll Forms Limited w
Indian Pens and Stationery w
Indian Steel and Allied Industries |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60,000 |
Equity Shares |
Rs.
100/- each |
Rs.
6.000 millions |
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
55,110 |
Equity Shares |
Rs.
100/- each |
Rs.
5.511 millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
5.511 |
5.511 |
5.511 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
104.065 |
83.736 |
61.257 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
109.576 |
89.247 |
66.768 |
|
|
LOAN FUNDS |
|
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|
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1] Secured Loans |
75.889 |
2.174 |
0.000 |
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2] Unsecured Loans |
59.840 |
46.073 |
20.489 |
|
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TOTAL BORROWING |
135.729 |
48.247 |
20.489 |
|
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DEFERRED TAX LIABILITIES |
21.031 |
20.054 |
14.140 |
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TOTAL |
266.336 |
157.548 |
101.397 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
231.086 |
174.495 |
95.269 |
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Capital work-in-progress |
0.000 |
3.790 |
0.000 |
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INVESTMENT |
14.256 |
4.296 |
11.630 |
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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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|
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Inventories |
10.552
|
8.982 |
7.683 |
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Sundry Debtors |
138.612
|
110.903 |
104.687 |
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Cash & Bank Balances |
10.065
|
5.188 |
5.782 |
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Other Current Assets |
2.880
|
4.127 |
2.471 |
|
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Loans & Advances |
44.328
|
35.122 |
32.995 |
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Total
Current Assets |
206.437
|
164.322 |
153.618 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
156.461
|
169.116 |
146.129 |
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Provisions |
28.982
|
20.239 |
12.991 |
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Total
Current Liabilities |
185.443
|
189.355 |
159.120 |
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Net Current Assets |
20.994
|
[25.033] |
[5.502] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
266.336 |
157.548 |
101.395 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
|
558.326 |
449.172 |
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Other Income |
|
27.144 |
22.651 |
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Total Income |
580.849 |
585.470 |
471.823 |
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Profit/(Loss) Before Tax |
29.905 |
35.603 |
17.397 |
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Provision for Taxation |
0.000 |
13.073 |
5.181 |
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Profit/(Loss) After Tax |
29.905 |
22.530 |
12.216 |
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Earnings in Foreign Currency : |
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Export Earnings |
216.212 |
192.465 |
120.614 |
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Other Earnings |
0.000 |
2.664 |
6.180 |
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Total Earnings |
216.212 |
195.129 |
126.794 |
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Imports : |
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Raw Materials |
NA |
267.973 |
182.518 |
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Capital Goods |
NA |
71.545 |
1.676 |
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Total Imports |
NA |
339.518 |
184.194 |
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Expenditures : |
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Increase/(Decrease) in Finished Goods |
|
[1.463] |
[0.355] |
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Purchases made for re-sale |
|
-- |
1.849 |
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Consumption of Raw Material |
|
403.208 |
322.400 |
|
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Consumption of stores and spares parts |
550.943 |
25.274 |
25.776 |
|
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Manufacturing Expenses |
|
45.397 |
42.837 |
|
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Salaries, Wages, Bonus, etc. |
|
6.399 |
6.841 |
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Administrative & Selling Expenses |
|
35.004 |
28.432 |
|
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Financial Expenses |
|
6.300 |
4.103 |
|
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Interest |
10.073 |
NA |
NA |
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Depreciation |
38.204 |
29.748 |
22.544 |
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Total Expenditure |
599.22 |
549.867 |
454.426 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
5.14
|
3.85 |
2.59 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.14
|
6.38 |
3.87 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.83
|
10.51 |
6.99 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.40 |
0.26 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.93
|
2.66 |
2.69 |
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Current Ratio (Current Asset/Current Liability) |
|
1.11
|
0.87 |
0.97 |
LOCAL AGENCY FURTHER INFORMATION
The company is in trade terms with Indian Steel & Allied
Industries.
Fixed
Assets
Ř
Plant & Machinery
Ř
Ř
Electrical Installation
Ř
Furniture & Fixture
Ř
Vehicles
Ř
Computer
Ř
Air Conditioner
Ř
Refrigerator
Ř
Office Equipment
Bankers Charges Report
as per Registry
|
Name of the company |
INDIAN
WRITING INSTRUMENTS PRIVATE LIMITED |
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Presented By |
INDIAN
WRITING INSTRUMENTS PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Indenture of Mortgage
dated 27the day of June, 2005 executed by INDIAN WRITING INSTRUMENTS
PRIVATE LIMITED the favour of SICOM Limited |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan of Rs.
150.000 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 |
The company by
the said mortgage : Created a first
charge in favour of SICOM On all that piece
or parcel of land bearing Plot No. H – 50 in the Nashik Industrial Area of
MIDC within the Village limits of Satpur Taluk and Shed No. W-60 in
the Nashik Industrial Area of MIDC within the Village limits of Satpur Taluka
and Registration Sub-District Nashik District and Nashik District and
Registration District Nashik containing by adm. 720 sq. mtrs. or thereabouts.
Together with all buildings and structures, plant, machineries, electrical
and other installations thereon, both present and future; By way of
Hypothecation on all the plant and machinery of the company installed at Shed
No. W 58 in the Nashik Industrial Area of MIDC within the Village limits of
Satpur Taluka and Registration Sun-District Nashik together with machinery
spares, tools and accessories, stores and spares relating thereto. Assignment of the
goodwill of its business, its uncalled capital and all its Licenses and
Registrations. Created a folding
charge on all it’s other assets in favour of SICOM. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The company : Agreed to pay to SICOM
on the said term loan of Rs. 150.000 Millions by 21 quarterly installments,
commencing at the end of one year loan or any part thereof or as per the said
term loan or any part thereof or as per the revised schedule, if any, that
may be fixed SICOM. The first 8 installments shall be of Rs. 6.500 Millions
each, the next 04 installments shall be of Rs. 7.000 Millions each the next
04 installments shall be of Rs. 7.500 Millions each and the last 05
installments shall be of Rs. 8.000 Millions each. Agreed to pay
interest at the rate of 2.50 % p.a. below SICOM reference rate to be paid by
monthly rests with a PROCISO to pay additional interest / compound interest
at the rate of 2.5 % p.a. over and above the applicable rate of interest as
mentioned above on the total amount in case of default in payment of any
installment of principal sum or interest. Covenanted not to
deal with or dispose off nor create any encumbrances of any kind whatsoever
on the mortgage / hypothecated premises or any of its other assets, both
present and future, during the currency of the loan. Covenanted to
create charge / mortgage on all that piece and parcel of land bearing Shed
No. W – 58 in the Nashik Industrial Area of MIDC with the Village limits of
Satpur Taluka and Registration Sub-District Nashik District and Registration
District Nashik in favour of SICOM to further secure the aforesaid Term Loan
of Rs. 150 Millions |
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5) Name and Address and description of the person entitled to the charge. |
SICOM Limited Nirmal, 1st
Floor, Nariman Point, Mumbai – 400021 |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.60 |
|
|
1 |
Rs.80.65 |
|
Euro |
1 |
Rs.54.55 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--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 |
|