MIRA
INFORM REPORT
|
Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
DEFIANCE KNITTING INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
K-6, Additional MIDC, Anand Nagar, Ambernath - 421 506 [East], District
Thane, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.12.1993 |
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Com. Reg. No.: |
11-75811 |
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CIN No.: [Company
Identification No.] |
U17100MH1993PTC075811 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD05069B |
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PAN No.: [Permanent
Account No.] |
AAACD2225R |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturing, importing and exporting of all kinds and varieties of
yarn, cotton textile and other related products including raw materials. |
RATING &
COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Maximum Credit Limit : |
USD 1500000 |
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Status : |
Poor |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Unknown |
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Comments : |
Financial position of the company is poor. It’s payments are slow and
delayed. The company’s networth has been eroded. It can be ignore for any worthwhile business dealings. |
LOCATIONS
|
Registered Office : |
K-6, Additional MIDC, Anand Nagar, Ambernath - 421 506 [East],
District Thane, Maharashtra, India |
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Tel. No.: |
91-251-2624044 / 5693893 / 2580064 / 2580067 |
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Fax No.: |
91-251-2621055 / 2581066 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Sudhir Babubhai Vora |
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Designation : |
Director |
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Address : |
Villa No. 4, Safapark Village, Jumeirah PO 50223, Dubai, UAE |
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Date of Appointment : |
27.12.1993 |
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Name : |
Mr. Mohanlal Badlani |
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Designation : |
Director |
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Address : |
PO Box 2509, Sharjan, UAE |
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Date of Appointment : |
27.12.1993 |
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Name : |
Mr. Jamno P Kalwani |
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Designation : |
Director |
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Address : |
PO Box 22320, Sharjan, UAE |
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Date of Birth/Age : |
06.03.1953 |
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Date of Appointment : |
27.12.1993 |
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Name : |
Mr. Babubhai C Vora |
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Designation : |
Director |
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Address : |
2101, Lake Castle, 21st Floor, Hiranandani Gardens, Powai,
Mumbai, Maharashtra, India |
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Date of Appointment : |
19.07.1997 |
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Name : |
Mr. A K Bakhshy |
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Designation : |
Director |
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Address : |
B – 14, Eden Grandens, Sion Trombay Road, Chembur, Mumbai – 400088,
Maharashtra, India |
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Date of Birth/Age : |
04.09.1941 |
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Date of Appointment : |
14.08.1998 |
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Name : |
Mr. Vinya Sudhir Vora |
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Designation : |
Director |
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Address : |
Villa 16/4B, 394 Emirates Hill Third Medows 7 Post Box 50223, Dubai,
UAE |
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Date of Birth/Age : |
10.06.1966 |
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Date of Appointment : |
01.02.1995 |
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Name : |
Mr. S. Vishamber Badlani |
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Designation : |
Director |
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Address : |
C/o, Embee Readymade Garments, Industrial Area No. 5, Plot No 474,
Sharjah, UAE |
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Date of Birth/Age : |
12.05.1956 |
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Date of Appointment : |
10.03.1998 |
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Name : |
Mr. T. N. Dewani |
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Designation : |
Director |
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Address : |
401/402, Gauri, 4th Floor, Shivdham Building, Shivmandir
Road, Ambernath [East], Maharashtra, India |
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Date of Appointment : |
23.09.1999 |
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Name : |
Mr. V Prakash |
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Designation : |
Director |
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Address : |
B 1003, ICICI Bank Staff Quarters, Sai Wadi, Andheri [East], Mumbai,
Maharashtra, India |
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Date of Appointment : |
24.12.2002 |
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Date of Ceasing : |
28.06.2004 |
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Name : |
Mr. Hari Prakash |
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Designation : |
Director |
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Address : |
Flat No 9, 3rd Floor, Auro Villa, Opposite jain Mandir,
Potdar School Road, Santacruz [West], Mumbai |
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Date of Appointment : |
28.06.2004 |
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Name : |
Mr. Manoj Oza |
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Designation : |
Director |
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Address : |
303, Ruby Building, Nirmal Lifestyles, L B. S. Marg, Mulund Mumbai –
400080, Maharashtra, India |
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Date of Appointment : |
30.09.2006 |
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Other Directorship : |
DKI Apparel Private Limited U18100MH2004PTC146670 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Sudhir B Vora |
|
643000 |
|
Mohanlal D Badlani |
|
708000 |
|
Jambo P Kalwani |
|
708000 |
|
Vanya S Vora |
|
65000 |
|
B A Bakshy |
|
100 |
|
T. N. Dewani |
|
100 |
|
C. Babubhai Vora |
|
100 |
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Total |
|
2124300 |
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Equity Share
Breakup |
|
|
|
Category |
|
Percentage of
Holding |
|
Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing, importing and exporting of all kinds and varieties of
yarn, cotton textile and other related products including raw materials. |
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Products : |
Kitting of Yarn |
GENERAL
INFORMATION
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No. of Employees : |
320 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chamaria & Associates Chartered Accountants |
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Address : |
22, Swadeshi Market, 1st Floor, Kalbadevi Road, Mumbai –
400 002, Maharashtra, India |
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|
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Associates/Subsidiaries : |
[CIN No. : U18100MH2004PTC146670] |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,000,000 |
Equity Shares |
Rs. 100/- each |
Rs. 300.000 Millions |
|
1,000,000 |
Preference Shares |
Rs. 100/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 400.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,124,300 |
Equity Shares |
Rs. 100/- each |
Rs. 212.430
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
The company’s last available financial details are enclosed herewith.
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
212.430 |
212.430 |
212.430 |
|
|
2] Share Application Money |
408.739 |
157.212 |
157.212 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
[251.942] |
[239.610] |
[205.113] |
|
|
NETWORTH |
369.227 |
130.032 |
164.529 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
183.322 |
414.627 |
412.823 |
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2] Unsecured Loans |
35.699 |
90.650 |
91.384 |
|
|
TOTAL BORROWING |
219.021 |
505.277 |
504.207 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
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TOTAL |
588.248 |
635.309 |
668.736 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
512.362 |
539.951 |
559.297 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
57.500
|
40.380 |
46.417 |
|
|
Sundry Debtors |
23.793
|
35.580 |
38.289 |
|
|
Cash & Bank Balances |
6.248
|
13.568 |
11.434 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
27.706
|
40.430 |
44.282 |
|
Total
Current Assets |
115.247
|
129.958 |
140.422 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
39.565
|
34.906 |
31.390 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
39.565
|
34.906 |
31.390 |
|
|
Net Current Assets |
75.682
|
95.052 |
109.032 |
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.204 |
0.306 |
0.407 |
|
|
|
|
|
|
|
|
TOTAL |
588.248 |
635.309 |
668.736 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2004 |
|
|
Sales Turnover |
|
|
202.222 |
|
|
Other Income |
|
|
81.961 |
|
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Total Income |
|
|
284.183 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
|
[24.941] |
|
|
Provision for Taxation |
|
|
-- |
|
|
Profit/(Loss) After Tax |
|
|
[24.941] |
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
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Total Earnings |
|
|
177.198 |
|
|
|
|
|
|
|
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Imports : |
|
|
|
|
|
|
Stores & Spares |
|
|
1.607 |
|
|
Others |
|
|
1.943 |
|
Total Imports |
|
|
3.550 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
|
|
183.978 |
|
|
Manufacturing and Other Expenses |
|
|
32.195 |
|
|
Selling an Distribution Expenses |
|
|
8.061 |
|
|
Office and Administration Expenses |
|
|
23.543 |
|
|
Interest and Finance Charges |
|
|
23.787 |
|
|
Prior Period Adjustments |
|
|
[0.199] |
|
|
Depreciation & Amortization |
|
|
37.759 |
|
Total Expenditure |
|
|
309.124 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
NA
|
NA |
[8.78] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
NA |
[12.33] |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
NA |
[3.56] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA
|
NA |
[0.15] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.70
|
4.15 |
3.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.91
|
3.72 |
4.47 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipments
- Vehicles
Bankers Charges Report
as per Registry
|
Name of the company |
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|
Presented By |
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1) Date and description of instrument creating the change |
Packing Credit
Agreement dated September 28, 1998 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 20.000
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 |
The Borrower doth
hereby Hypothecate to and in favour of the said bank doth charge with the
repayment to the said Bank of all principal monies, interest and all costs
charges and expenses and other monies to become due hereinunder All those
movable properties, goods and assets of whatsoever nature of all borrower meant
or intended for export, both present and future and including but without
prejudice to the generally of the foregoing words, all stocks of raw
materials, goods in process, semi finished and finished goods of the borrower
meant or intended for export, such as Yarn, Dyes and chemical, fabric etc.
and / or any other goods meant indended or being manufactured for export
lying in the factory in a shed described as “Factory Shed” situated in the premises adjoining the main
factory shed or at such other places as may be advised by thte Company to the
Bank from time to time or wheresoever situate and / or in transit, now
belonging to or that may at any time during the continuance of this security
belong to the borrower and meant or intended or being manufactured for export
or that may be held by any party to the order and disposition of the borrower
to the intent that the security and charge hereby created shall be the
security by way of first charge on all such properties and assets aforesaid. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Ambernath Branch, Ambernath - 1 |
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6) Date and brief description of instrument modifying the charge |
-- |
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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. |
-- |
AS PER WEBSITE
Subject is incorporated on December 23, 1993. The main product is Grey and processed knitted fabric of high quality which has 20 tons a day production capacity with estimated sales about Rs 1200 Millions. Location : Located on a 6 1/2 acre plot about two hours drive from international Airport and twin sea ports of Mumbai. The hinterland has vast cotton growing areas and several yarn mills of repute. Most of the yarn mills have their godown in the handloom city of Bhiwandi about one hour by road. The Additional Industrial Estate Ambarnath is one of the most prestigious industrial estates in the state of Maharashtra and has all infrastructure facilities planned, wide roads, shopping complex, banks, post offices, hotels, and other support services. There is adequate water for commercial use sourced from nearby Barvi Dam & has adequate power supply. Plants :Latest and the best machines Environmental Friendly
The world renowned Mayer & Cie tubular Knitting machines have been procured from Germany whereas knitting of collar & cuffs would be on most versatile Protti machines from Italy and Shima Seiki machines from Japan. The fully computerised Dye House is from Thies, Germany which apart from giving most precise Colour, Consumes least water and heat thus conserving valuable natural resources. The plant has also acquired a new generation Roto Tumbler machine from Thies, which is a great value addition to the finished product. The Bleaching machine from Santex Switzerland is also the least water consuming bleaching machine available the 5th in the world and 1st in India. Also from Santex Switzerland is the entire range of finishing machinery. The high speed Rotary Printing from Stork Holland equipped with computerised design and engraving facility is the first machine of its type to come to India. It has a high paste recovery facility, which greatly reduces colour polluted effluent discharge. The plant is also equipped with Stenter, Raising & Singeing machines.
The Plant is one of the most environmental friendly Plants in the region. The most modern machinery ensures environmental safety by consuming less than 1/2 the amount of Steam, Water and Power compared to conventional Plants. The company has also set up its own Effluent Treatment Plant besides a Caustic Recovery Plant at a Cost of Rs. 7.000 Millions. The effluent discharged after treatment will be good enough for irrigation. This has been provided even though MIDC has the facility of a common Effluent Treatment Plant. The management has planted thousands of trees & Shrubs all around Factory Premises. Environment friendly air conditioning system consumes less power & does not require CFC changing which affects ozone layer. Promoters: Sudhir B.VoraActively involved in the garment export business for over two decades, with specialisation in marketing overseas. Several business ventures in India, Dubai & USA. Mohanlal S. BadlaniTwenty years experience in hosiery yarn, fabric and hosiery garments, has manufacturing units in Sharjah, Qatar (Doha), at Port said (Egypt), Philippines & Indonesia. Jamno Perumal KalwaniOver 20 years in business of Import-Export & the wholesale & retail selling of garments & other consumer items with officies all over the world. Owns a chain of over 40 supermarkets in & around the Gulf at over 20 locations. Top Management : Highly qualified & experienced professionals from India & overseas to run the Plant Apart from technicians & engineers, qualified professionals manage accounts, personnel, Sales, Planning & Communications.
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 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.39.37 |
|
UK Pound |
1 |
Rs.81.82 |
|
Euro |
1 |
Rs.56.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
- |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
TOTAL |
|
8 |
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. |
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 |
|