MIRA
INFORM REPORT
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Report Date : |
20.10.2007 |
IDENTIFICATION DETAILS
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Name : |
BORANA PLASTIC LIMITED |
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Registered Office : |
14 - B, Wadala Udyog, Bhavan, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
12.04.1998 |
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Com. Reg. No.: |
11-46988 |
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CIN No.: [Company
Identification No.] |
U25200MH1988PLC046988 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB11738G |
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PAN No.: [Permanent
Account No.] |
AAACB3552D |
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Legal Form : |
A Closely held Public Limited Company |
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Line of Business : |
Manufacturer of all types of plastic raw materials. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 24000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Trade
relations are fair. Profit margin is under severe pressure. Payments are
reported as slow but correct. The company can be considered for small to mediocre business dealing
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
14 - B, Wadala Udyog, Bhavan, |
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Tel. No.: |
91-22-4147581 / 24122513 |
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Fax No.: |
91-22-4130611 |
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E-Mail : |
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Website : |
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Head Office : |
B -11/14, Wadala Udyog, Bhavan,
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Tel. No.: |
91-22-24122415 / 24123865 / 24128219 / 24122513 / 24147581 / 24145470 |
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Fax No.: |
91-22-24130611 |
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E-Mail : |
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Website : |
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Branches : |
Vasai Branch: Plot No.1, Agarwal Industrial Estate, Agarwal Udyog Nagar, Walliv –
Vasai (East), District Thane Plot No. 376/2 (23B), Kachigam, Tel No: 91-260-2242751 Mobile No: 91-9322204035 Email: borana@bom3.vsnl.net.in |
DIRECTORS
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Name : |
Mr. Baboolal C Borana |
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Designation : |
Chairman and Managing Director |
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Address : |
Flat No. 9, Homelands CHS Limited, 55-A, Hill Road, Ramdas Nayak Marg,
Bandra (west), Mumbai – 400 050, Maharashtra |
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Date of Birth/Age : |
23.05.1953 |
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Experience : |
36 years |
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Date of Appointment : |
12.04.1988 |
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Name : |
Mr. Manish B Borana |
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Designation : |
Director |
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Address : |
Flat No. 9, Homelands CHS Limited, 55-A, Hill Road, Ramdas Nayak Marg,
Bandra (west), Mumbai – 400 050, Maharashtra |
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Date of Birth/Age : |
18.06.1980 |
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Qualification : |
PG. D.B.M |
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Experience : |
4 years |
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Date of Appointment : |
23.02.1999 |
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Name : |
Mrs. Ratandevi B Borana |
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Designation : |
Director |
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Address : |
Flat No. 9, Homelands CHS Limited, 55-A, Hill Road, Ramdas Nayak Marg,
Bandra (west), Mumbai – 400 050, Maharashtra |
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Date of Birth/Age : |
16.07.1956 |
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Date of Appointment : |
15.10.2003 |
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Name : |
Mrs. Kajal M Borana |
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Designation : |
Director |
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Address : |
Flat No. 9, Homelands CHS Limited, 55-A, Hill Road, Ramdas Nayak Marg,
Bandra (west), Mumbai – 400 050, Maharashtra |
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Date of Birth/Age : |
06.01.1985 |
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Date of Appointment : |
04.11.2004 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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Mr. Baboolal Borana |
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Mr. Manish Borana |
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Mrs. Ratandevi Borana |
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Mrs. Kajal Borana |
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Mr. Pradeep Borana |
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Mrs. Damyanti Borana |
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Mr. Pankaj Hingarh |
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Mrs Sonal Hingarrh |
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Mr. Bupendra Sheth |
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Equity Shares Breakup (Percentage of Total Equity):
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Sr No. |
Category |
Percentage |
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1 |
Directors or relative of directors |
99.99 |
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2 |
Others |
0.01 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of all types of Plastic raw materials. |
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Products : |
· LDPE · LLDPE · HDPE · PP · PVC · Titanium Dioxide |
GENERAL INFORMATION
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Suppliers : |
·
· K N Holding Finance Company Limited · Mehta Traders · Praveen Plastics · Rose Impex · Shakti Agencies · Sabic Marketing Limited · Snow Plast ·
Shreeji Plastic ( · Roselin Impex Private Limited |
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Customers : |
· Allied Plastics · Amplas Polymers Limited · Apollo Plastics Industries · Arihant Enterprises · D M Plastics Limited ·
Endeavour Plastic · Euro Plast ·
Extrusions · Gala Industries · Jai Ambe Plastic |
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No. of Employees : |
10 |
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Bankers : |
Corporation Bank Address: |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Ramesh S Parmar Chartered Accountants |
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Address : |
Balsara House, 2nd Floor, 197, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000 |
Equity shares |
Rs. 10/- each |
Rs. 2.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150080 |
Equity shares |
Rs. 10/-
each |
Rs. 1.500
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1.501 |
1.500 |
1.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4.496 |
0.465 |
3.911 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5.997 |
1.965 |
5.411 |
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LOAN FUNDS |
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1] Secured Loans |
6.828 |
11.212 |
1.817 |
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2] Unsecured Loans |
13.410 |
6.754 |
4.937 |
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TOTAL BORROWING |
20.238 |
17.966 |
6.754 |
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DEFERRED TAX LIABILITIES |
0.148 |
0.098 |
0.000 |
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TOTAL |
26.383 |
20.029 |
12.165 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4.119 |
3.165 |
0.877 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.239 |
0.395 |
0.320 |
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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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Inventories |
14.443
|
18.329 |
4.341 |
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Sundry Debtors |
27.559
|
12.963 |
13.432 |
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Cash & Bank Balances |
4.881
|
2.217 |
0.828 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
6.210
|
8.155 |
6.339 |
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Total
Current Assets |
53.093
|
41.664 |
24.940 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
30.718
|
24.714 |
13.699 |
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Provisions |
0.360
|
0.493 |
0.287 |
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Total
Current Liabilities |
31.078
|
25.207 |
13.986 |
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Net Current Assets |
22.015
|
16.457 |
10.954 |
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MISCELLANEOUS EXPENSES |
0.010 |
0.012 |
0.014 |
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TOTAL |
26.383 |
20.029 |
12.165 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
247.500 |
122.875 |
127.195 |
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Other Income |
8.447 |
6.752 |
3.228 |
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Total Income |
255.947 |
129.627 |
130.423 |
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Profit/(Loss) Before Tax |
4.455 |
[3.347] |
1.287 |
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Provision for Taxation |
0.424 |
0.097 |
0.466 |
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Profit/(Loss) After Tax |
4.031 |
3.444 |
0.821 |
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Expenditures : |
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Cost of goods sold |
0.000 |
0.000 |
122.897 |
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Administrative Expenses |
0.000 |
0.000 |
6.074 |
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Preliminary expenses Written off |
0.000 |
0.000 |
0.001 |
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Purchases made for re-sale |
243.531 |
122.843 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.509 |
0.478 |
0.000 |
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Managerial Remuneration |
1.310 |
0.720 |
0.000 |
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Payment to Auditors |
0.061 |
0.035 |
0.000 |
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Interest |
1.165 |
0.735 |
0.000 |
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Insurance Expenses |
0.421 |
0.671 |
0.000 |
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Depreciation & Amortization |
0.520 |
0.268 |
0.162 |
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Other Expenditure |
3.972 |
7.224 |
0.000 |
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Total Expenditure |
251.489 |
132.974 |
129.134 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
1.57
|
2.65 |
0.62 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.80
|
[2.72] |
1.01 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.78
|
[0.07] |
0.04 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.74
|
[1.70] |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
|
8.55
|
21.97 |
3.83 |
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Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.65 |
1.78 |
LOCAL AGENCY FURTHER INFORMATION
|
Corporation identity number or foreign company registrations number of
the company |
U25200MH1988PLC046988 |
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Name of the company |
BORANA PLASTIC LIMITED |
|
Address |
14-B, Wadala Udyog Bhavan Naigaon Cross road, Mumbai – 400
031, |
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This Form is for |
Modification of charge |
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Type of Charges |
Book debts |
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Particular of the charge holder
|
Corporation Bank Address: Email: yardiprabhu@vsnl.net |
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Nature or description of the instrument creating charge |
Common deed of hypothecation of movables
assets/ Debts |
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Date of the instrument creating charge |
09.11.2006 |
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Amount Secure by the charge |
Rs. 35.000 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of interest: 11.50% p.a being over and above the banks
lending rate which is 11.50% p.a at present, rising or falling with the banks
prime lending rate or at such lending rate that the bank may determine to
charge from time to time and also co long as the principal or part thereof
remains unpaid. Terms
of repayments: As per sanction by the bank Margin: As per sanction by the bank Extent
and operation of the charge As per sanction by the bank Others: As per sanction by the bank |
|
Short particulars of the Property
charged |
Equitable mortgage of property B -14,
Wadala Udyog Bhavan, Ground Floor, 8 Naigaon Road, Wadala, Mumbai – 400 031 |
|
Particulars of the present modification |
Limit enhanced from Rs. 21.000 millions to
Rs. 35.000 millions Cash credit (hypothecation of book debts )
cum PCL Cum FDBN/ FDBP/D Rs. 10.000 millions Import / Inland L/C, Limit DP/
DA Terms Rs. 25.000 millions |
|
Name of the
company |
BORANA PLASTIC LIMITED |
|
Presented
By |
Shri. Baboolal C Borana |
|
1) Date and
description of instrument creating the change |
08.12.2003 Hypothecation of
goods to secure demand cash credit |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Hypothecation of
goods to secure demand cash credit |
|
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 |
Stock of entire
Plastic Raw Material, Stock in process and finished goods and receivables of
the company |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
As per hypothecation agreement enclosed |
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5) Name and
Address and description of the person entitled to the charge. |
Corporation Bank Address: |
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6) Date and brief description of instrument
modifying the charge |
No modification |
|
Name of the
company |
BORANA PLASTIC LIMITED |
|
Presented
By |
Corporation Bank, |
|
1) Date and
description of instrument creating the change |
Common deed of
hypothecation of movable / assets/ debts dated 08.12.2003 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Cash credit (hypothecation
of book debts) cum PCL cum FDBN/ FDBP/ FDBN/D – Rs. 6.000 millions Import /
inland LC Limit of Rs. 15.000 millions (including NG Limit of Rs. 3.238
millions) Total Rs. 21.000 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 |
Hypothecation of assets of the company such
as office equipments, furniture , fixtures, air Conditioners, Fax, Xerox
Machines having a net block of Rs. 0.475 millions as on 31.03.2003 |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Interest @ 12.50% p.a being 1% over and
above the banks PLR which is 11.50% |
|
5) Name and Address
and description of the person entitled to the charge. |
Corporation Bank Address: Shivaji Park Branch, 127, Barkha
Building, opposite Star City Cinema, Manmala Tank Road, Mumbai – 400 016 |
|
6) Date and brief description of instrument
modifying the charge |
Memorandum of
title deeds dated : 17.05.2005 |
|
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. |
By this modifications
the additional collateral security of the property Unit no. 12-A admeasuring
750 sq.fts in basement in the building known as “wadala” Udyog Bhavan, Unit
Holder co-operative society Limited at no. 8, Naigaon Cross Road, wadala,
Mumbai – 400 031 |
FIXED ASSETS:
· Furniture and Fixtures
· Computers
· Electronic Type writer
· Air conditioner
· Teel Machine
· Fax machine
· Security Systems
· Office Equipments
· Cars / Vehicles
· Scooter
· Zerox Machine
WEBSITE DETAILS:
The company an Integrated Enterprise with over 35 Years of Experience.
Primarily functioning as Borana Plastic Limited, who have been pioneers in
supplying Raw materials to the Plastic Manufacturing Industry? With Borana
Plastic, having a wide range of Plastic raw materials at affordable prices.
They have a ready stock of Inventory always available and they service their
esteemed customers, with Prompt delivery. They are also Merchant Exporters of
various Plastic Products.
Recently the Borana Group is Foraying into Construction and Advertising, with a
mission to help constructing and hoarding
Company Profile:
They were registered as a Partnership Firm in the year 1969 as M/s
BORANA PLASTIC and became a Deemed-Public Limited.
They have served many domestic companies as a CONSIGNMENT STOCKIST for M/s. SRF
LIMITED – from the year 1980 to 1998, M/s. OSWAL PETROCHEMICALS – from the year
1988 to 1997 and M/s. GAS AUTHORITY OF INDIA LIMITED- from the year 2000 to
2002.
Domestic:
They are the Polymer stockists for the top manufacturers in
Reliance
IPCL
GAIL
Haldia
Their quality controls and excellent storage facility ensures that they are
always ready with best quality products at competitive prices.
Imports:
They have been Importing Polymer Products from many Companies in this
Petroleum world from the year 1969 . They have been appointed as PREFERRED
DISTRIBUTOR by M/S. QATAR PETROCHEMICAL COMPANY LIMITED. Qatar to Market their
full range of Low Density Polyethylene under the brand name LOTRENE in
Maharashtra,
Exports:
Plastic Raw Materials? “Name it, they will Export it"
Since 2002, they have ventured as Merchant Exporters of all kinds of Mono and Co-extrusions 3 layer Blow and 5 Layer Cast Films / Sheet/Rolls and Plastic Bags such as Garbage Bags, T-Shirt Bags, Shopping Bags, Bag-On-Roll, Fragranced Bags, HD/PP Tarpaulins, PE Woven Sacks Bags, and Other Plastic items.
Management Team:-
• Mr. Vilas P Jain
• Mr. Anil P Salian
• Mr. Kiran Kosireddy
• Mr. Shekhar. B.
Products:-
|
Products |
Description |
Suppliers |
|
LDPE |
General Purpose
Film, Milk Pouch, Lamination Films, Heavy Duty Films & Injection Moulding |
|
|
LLDPE |
Films,
Lamination, Specialty Films |
|
|
HDPE |
Film &
Injection Moulding, Pipe |
|
|
PP |
Film, House
Ware, Industrial Products |
|
|
PVC |
Film, Footwear,
Pipe |
|
|
TITANIUM DIOXIDE |
Paint Industry,
Master Batch |
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.39.57 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.56.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
40 |
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 |
|