MIRA INFORM
REPORT
|
Report
Date : |
24.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
DASS
ELECTRIC TRADING COMPANY PRIVATE LIMITED |
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Registered
Office : |
2412,
Yogesh House, |
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Country
: |
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Financials
(as on) : |
31.03.2005 |
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Date
of Incorporation : |
19.09.1988 |
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Com.
Reg. No.: |
11-48872 |
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CIN
No.: [Company
Identification No.] |
U52334MH1988PTC048872 |
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|
Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Dealers in Refrigerators, Washing Machines, |
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 29000 |
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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 dealers for consumer
durables. Trade relations are fair. Payments are correct and as per
commitments. The company can be considered good for normal business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
|
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Tel.
No.: |
91-20-24012236/24012238/26347400 |
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Fax
No.: |
91-20-26347400 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr. Nareshchandra Bishandas Sareen |
|
Designation
: |
Chairman and Managing Director |
|
Address
: |
29, |
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Date
of Birth/ Age: |
07.04.1949 |
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Date
of Appointment : |
19/09/1998 |
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|
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Name : |
Mr. Dinesh Bishandas Sareen |
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Designation
: |
Director |
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Address
: |
29, |
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Date
of Birth/ Age: |
11.07.1951 |
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Date
of Appointment : |
19/09/1998 |
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|
|
|
Name : |
Ms. Usha Rameshchandra Sareen |
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Designation
: |
Director |
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Address
: |
29, |
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Date
of Birth/ Age: |
10/01/1940 |
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Date
of Appointment : |
19/09/1998 |
KEY
EXECUTIVES
|
Name : |
Mr. Manoj
H Shah |
|
Designation
: |
Company
Secretary |
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Address
: |
205,
Kasba Peth, |
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Tel.
No.: |
91-20-24480996 |
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Fax
No.: |
91-20-24480996 |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Naresh Bishan Sareen |
95600 |
|
Dinesh Bishan Sareen |
95600 |
|
Usha R
Sareen |
54100 |
|
Ritu N Sareen |
50 |
|
Kunal D
Sareen |
50 |
|
Kapil D
Sareen |
50 |
|
Karan D
Sareen |
50 |
|
Naresh B
Sareen HUF |
50 |
|
Dinesh B
Sareen HUF |
50 |
|
Asha N
Sareen |
50 |
|
Madhu D
Sareen |
50 |
|
Vicky N
Sareen |
50 |
|
Priyanka
D Sareen |
50 |
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Total |
245800 |
|
Names of Shareholders |
Percentage of Holding |
|
Directors or Relatives of Directors |
100.00 |
|
Total |
100.00 |
BUSINESS
DETAILS
|
Line
of Business : |
Dealers in Refrigerators, Washing Machines, |
GENERAL
INFORMATION
|
No. of
Employees : |
20 |
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Bankers
: |
v Janseva Sahakari Bank Limited Head
Office : 156, Gandhi Chowk, Hadapsar, Pune – 411028 v Indian Overseas Bank, Pimpri Chanchwad
Branch, No. 5 & 6 Vishal Arcade, Station Road, Chinchwad, Pune – 33 v Standard Charted Bank, 23 –25, M v Canara Bank, |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
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|
Name : |
Sunil Shah Chartered Accountants |
|
Address : |
2/56, Shastri Apartments, Pune – 411 001, |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
250000 |
Equity Shares |
Rs. 10/- each |
Rs. 2.500 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
245800 |
Equity Shares |
Rs. 10/- each |
Rs. 2.458 millions |
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 |
2.458 |
2.458 |
2.458 |
|
|
2]
Reserves & Surplus |
4.691 |
3.921 |
3.347 |
|
NETWORTH
|
7.149 |
6.379 |
5.805 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
39.236 |
28.590 |
23.726 |
|
|
2]
Unsecured Loans |
14.684 |
14.503 |
8.803 |
|
TOTAL
BORROWING
|
53.920 |
43.093 |
32.529 |
|
|
|
|
|
|
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TOTAL
|
61.069 |
49.472 |
38.334 |
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APPLICATION OF FUNDS
|
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|
|
|
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FIXED ASSETS [Net Block]
|
16.765 |
12.880 |
9.121 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
48.515
|
37.519 |
28.647 |
|
|
Sundry Debtors
|
14.176
|
11.307 |
11.515 |
|
|
Cash & Bank Balances
|
0.891
|
1.362 |
0.400 |
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|
Bonus Receivable
|
15.721
|
4.223 |
3.099 |
|
|
Loans & Advances
|
1.260
|
7.037 |
4.337 |
Total Current Assets
|
80.563
|
61.448 |
47.998 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
35.772
|
24.858 |
18.787 |
|
|
Provisions
|
0.490
|
0.000 |
0.000 |
Total Current Liabilities
|
36.262
|
24.858 |
18.787 |
|
Net
Current Assets
|
44.301
|
36.590 |
29.201 |
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|
|
|
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MISCELLANEOUS EXPENSES
|
0.003 |
0.002 |
0.002 |
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TOTAL
|
61.069 |
49.472 |
38.334 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
439.077 |
258.921 |
251.251 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1.593 |
1.084 |
0.535 |
Provision for Taxation
|
0.320 |
0.090 |
0.040 |
Profit/(Loss) After Tax
|
1.273 |
0.994 |
0.495 |
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|
|
|
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Total Expenditure
|
436.262 |
257.836 |
250.715 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
0.29
|
0.38 |
0.20 |
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|
|
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|
Net Profit Margin
(PBT/Sales) |
(%) |
0.36
|
0.42 |
0.21 |
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|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
1.63
|
1.46 |
0.94 |
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|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.22
|
0.17 |
0.09 |
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|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
13.61
|
10.65 |
8.84 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
2.22
|
2.47 |
2.55 |
LOCAL
AGENCY FURTHER INFORMATION
Business:
The company acts as
dealer for consumer durables.
Dividend:
The Board of Directors of
the company recommended dividend of 15% on the equity shares amounting of Rs.
0.368 Millions for the year under review.
Fixed Assets:
Furniture, Computer,
Office Equipment, Electrical Installation, Vehicle, Air conditioner, Business
Development etc.
|
Name of the company |
Dass Electric Trading
Company Private Limited |
|
Presented By |
Naresh B Sareen - Director |
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1) Date and description of instrument creating the change |
Term Loan Agreement dated 09.03.2005 |
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2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 3.000 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 by way of 1st charge all
machineries such as entire Furniture, Fixture, AC, Electric Fiting,
Installation PDP and other fixed assets in Aundh Showroom. |
|
4) Gist of the terms and conditions and extent and
operation of the charge. |
Interest @ 11.75% p.a. Repayment – 60 Monthly Installments of Rs. 0.066 Millions Starting from 09.06.2005 |
|
5) Name and Address and description of the person entitled
to the charge. |
Indian Overseas Bank, Pimri Chanchwad Branch, No. 5 &
6 Vishal Arcade, Station Road, Chinchwad, Pune – 33. |
|
6) Date and brief description of instrument modifying the
charge |
NOT APPLICABLE |
|
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. |
NOT APPLICABLE |
|
Name of the company |
Dass Electric Trading Company
Private Limited |
|
Presented By |
Dass Electric Trading
Company Private Limited |
|
1) Date and description of instrument creating the change |
The Borrower has by declaration created the hypothecation on
stock and book debts in favor of the standard Charted Bank on 23.09.2005. The
certified copy of the Agreement of Hypothecation of stock and book debts is
enclosed. The borrower has by declaration created the Mortgage on
the immovable property in favour of the Started Charted Bank on The certified copy of the Memorandum of Entry for mortgage
by way of deposit of title deeds in this regard is enclosed. |
|
2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 38.330 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 All the stock in trade both present & future
consisting of raw materials, finished goods, goods in process of
manufacturing and other merchandise whatsoever, being movable properties now
or at any time hereafter belonging to the borrower or at the Borrowers
disposal and now or at any time and from time to time hereafter stored or to
be stored or brought in to or upon or in course of transit to the borrower
factory or premises or at any other place whatsoever and whatsoever in the borrower possession
or occupation or at any other premises or place. All the present and future book debts, outstanding, money,
receivable, claims, bills which are now due, owing or which may at any time
hereafter during the continuance of this security become due and owing to the
borrower in the course of its business by any person, firm, company or body
corporate or by the government Central or state or Indian railways, any
government department or office or any municipal or local or public or semi
government body or authority or any body corporate or under tacking or
project whatever in the public sector.
|
|
4) Gist of the terms and conditions and extent and
operation of the charge. |
Security for overdraft facility of Rs. 32.500 Millions and
Term Loan of Rs. 5.830 Millions granted to M/s Dass Electric Trading Company
Private Limited. Charges operate as first and paramount charge in favor of
the bank as security for all dues under the term loan facility. |
|
5) Name and Address and description of the person entitled
to the charge. |
Standard Charted Bank 23 –25, M |
|
6) Date and brief description of instrument modifying the
charge |
NOT APPLICABLE |
|
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. |
NOT APPLICABLE |
|
Corporation
identity number (CIN) or foreign company registrations number of the
company |
U52334MH1988PTC048872 |
|
Name of
the company |
Dass Electric Trading Company Private Limited |
|
Address |
|
|
This Form
is for |
Modification
of charge |
|
Type of
Charges |
Book
debts, movable property, floating charge |
|
Particular
of the charge holder |
Canara
Bank |
|
Nature or
description of the instrument creating charge |
Supplemental
common hypothecatin agreement dated 30.05.2007 enhancing the existing cash
credit limits from Rs. 60.000 millions to Rs. 80.000 millions |
|
Date of the
instrument creating charge |
30.05.2007 |
|
Amount
Secure by the charge |
Rs.
98.400 millions |
|
Brief of
the principal terms and conditions and extent and operation of the charge |
Rate of
Interest: at bplr currently 13.25% p.a. Terms of
Repayment: OCC – on demand term loan of Rs. 18.400 millions to be reduced to
Rs. 18.000 millions by 31.03.2007 and then 20 equal quarterly installment of
Rs. 0.900 millions w.e.f. 30.04.2007 Margin:
for cash credit 25% margin Extent
and operation of the charge: the charge amount consist of Rs. 80.000 millions
cash credit and Rs. 18.400 millions term loan, the bank reserves the right to
disburse the amount in lump sum or in installment depending on the
requirement for the borrower. |
|
Description
of the property charge whether it is a charge on |
-- |
|
Modification
charge Charge
identification number of the charge to be modified |
10045838 |
|
Date of
instrument modifying the charge |
30.05.2007 |
|
Particulars
of the Property charged |
Stock of
various electronics and electrical items / goods lying / store in the various
storerooms / godowns of the borrower. All
furniture / fixtures/ air conditioners and other equipments, accessories and
movable of the borrwer at their various showrooms. Book
debts |
|
Particulars
of the present modification |
By way of
this modification the cash credit limit of the company increased from Rs.
60.000 millions to Rs. 80.000 millions. The total limit now increased to Rs.
98.400 millions comprising of Rs. 80.000 millions cash credit limits and Rs.
18.400 term loan. Other terms remaining the same |
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
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.39.51 |
|
|
1 |
Rs.81.61 |
|
Euro |
1 |
Rs.56.76 |
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 |
NO |
|
--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
|
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 |