MIRA
INFORM REPORT
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Report Date : |
19.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SARA INTERNATIONAL LIMITED |
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Registered Office : |
Sara House, A-31 Hauz
Khas, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.09.1973 |
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Com. Reg. No.: |
55-006854 |
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CIN No.: [Company
Identification No.] |
U74140DL1973PLC006854 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS28442B |
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PAN No.: [Permanent
Account No.] |
AAACS1878B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
International Trading of Agro Commodities, steel and its Raw Materials, Textiles, Garments, Precious Metals and Petro-Chemical Products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1000000 |
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Status : |
Good |
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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. 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. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
Sara House, A-31 Hauz
Khas, |
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Tel. No.: |
91-11-26851340 /26517134 / 26517138 |
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Fax No.: |
91-11-26517127 |
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E-Mail : |
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Website : |
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Branches : |
Located at :
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Overseas Offices: |
Located at : |
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Overseas
Associates Offices: |
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DIRECTORS
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Name : |
Mr. Davinder Pal Singh |
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Designation : |
Managing Director |
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Address: |
S -99, |
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E-Mail: |
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Date of Birth/Age : |
07.10.1952 |
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Date of Appointment : |
05.11.1988 |
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Name : |
Mrs. Abha Singh |
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Designation : |
Director |
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Address: |
S -99, |
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Date of Birth/Age : |
20.09.1956 |
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Date of Appointment : |
30.09.1992 |
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Name : |
Mr. Charan Singh |
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Designation : |
Director |
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Date of Appointment : |
28.06.1996 |
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Name : |
Mrs. Indira Banga |
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Designation : |
Director |
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Date of Appointment : |
28.06.1996 |
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Name : |
Mr. Deepit Singh |
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Designation : |
Non-Executive Director |
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Address: |
S -99, |
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Date of Birth/Age : |
13.10.1978 |
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Date of Appointment : |
01.11.1997 |
KEY EXECUTIVES
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Name : |
K. K. Malhotra and Company |
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Designation : |
Company Secretary |
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Address : |
C-2/4 Pragati Market, Ashok Vihar, Phase –II,
Delhi-110052, |
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Tel No.: |
91-11-27418489 |
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Mobile No.: |
91-9810153573 |
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Fax No.: |
91-11-27211409 |
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E-Mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Mr. Devinder Pal Singh |
90928 |
70.83 |
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Ms. Abha Singh |
36800 |
28.67 |
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Mr. Charan Singh |
160 |
0.12 |
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Ms. Indira Banga |
20 |
0.02 |
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Mr. Deepit Singh |
320 |
0.25 |
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Mr. H. S. Banga |
120 |
0.09 |
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Mr. Tushar Singh |
20 |
0.02 |
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Total |
128368 |
100.00 |
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Category |
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Percentage of Holding |
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Directors or relatives of directors |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
International Trading of Agro Commodities, steel and its Raw Materials, Textiles, Garments, Precious Metals and Petro-Chemical Products. |
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Exports : |
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Products : |
v
Agricultural
Commodities v
Wheat
to Flour Mills v
Yarns v
Fabrics |
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Countries : |
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Imports : |
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Products : |
Pulses |
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Countries : |
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Terms : |
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Purchasing : |
L/C |
GENERAL INFORMATION
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No. of Employees : |
1500 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sunil K. Khanna and Company Chartered Accountants |
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Address : |
606, |
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Tel. No.: |
91-11-51608766 / 51608767 |
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Fax No.: |
91-11-21608765 |
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Associates/Subsidiaries : |
v
Sara Developers v
Kriti International v
Sara Textiles Limited v
Sara Universal Private Limited v
Ohio Learning Systems Private Limited v
Sara Traders and Distributors Limited v
Sara Trans Engineering Exports Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000 |
Equity Shares |
Rs. 100.00 each |
Rs. 15.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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128368 |
Equity Shares |
Rs. 100.00 each |
Rs. 12.837 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
12.837 |
12.837 |
12.837 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
258.211 |
249.347 |
222.935 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
271.048 |
262.184 |
235.772 |
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LOAN FUNDS |
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1] Secured Loans |
275.227 |
282.404 |
504.676 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
275.227 |
282.404 |
504.676 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.141 |
0.268 |
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TOTAL |
546.275 |
544.729 |
740.716 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13.090 |
13.717 |
13.679 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
47.469 |
21.153 |
14.267 |
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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 |
159.248
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125.562 |
361.821 |
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Sundry Debtors |
64.200
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121.276 |
345.651 |
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Cash & Bank Balances |
198.222
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166.131 |
245.150 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
186.343
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171.210 |
121.513 |
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Total
Current Assets |
608.013
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584.179 |
1074.135 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
113.757
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53.762 |
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Provisions |
8.540
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20.558 |
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Total
Current Liabilities |
122.297
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74.320 |
361.367 |
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Net Current Assets |
485.716
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509.859 |
712.769 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
546.275 |
544.729 |
740.716 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1516.328 |
2025.765 |
3232.845 |
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Other Income |
19.199 |
18.143 |
72.160 |
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Total Income |
1535.527 |
2043.908 |
3305.005 |
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Profit/(Loss) Before Tax |
22.945 |
47.568 |
70.908 |
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Provision for Taxation |
0.000 |
0.000 |
19.005 |
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Profit/(Loss) After Tax |
22.945 |
47.568 |
51.903 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
1.353 |
2553.637 |
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Commission Earnings |
NA |
0.000 |
0.084 |
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Other Earnings |
NA |
0.000 |
0.000 |
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Total Earnings |
NA |
1.353 |
2553.721 |
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Expenditures : |
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Purchases made for re-sale |
1111.388 |
1341.337 |
2779.466 |
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Increase or decrease in finished goods, work
in progress |
(33.686) |
236.259 |
0.000 |
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Salaries, wages and bonus |
11.627 |
9.796 |
0.000 |
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Managerial Remuneration |
0.820 |
0.330 |
0.000 |
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Payment of auditors |
0.331 |
0.293 |
0.000 |
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Interest and Financial Expenses |
13.635 |
10.472 |
60.383 |
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Insurance Expenses |
0.265 |
0.179 |
0.000 |
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Depreciation and amortization |
2.773 |
2.825 |
2.791 |
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Other Expenditure |
405.429 |
394.849 |
391.457 |
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Total Expenditure |
1512.582 |
1996.340 |
3234.097 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
1.49
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2.33 |
1.57 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.51
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2.35 |
2.19 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.69
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7.96 |
6.52 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08
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0.18 |
0.30 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.47
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1.36 |
3.67 |
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Current Ratio (Current Asset/Current Liability) |
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4.97
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7.86 |
2.49 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Residential Flat
Commercial Flat
Vehicles
Furniture and Fixtures
Computers
Office Equipments
Form 8
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Name of the company |
SARA
INTERNATIONAL LIMITED |
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Presented By |
Punjab National
Bank |
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1) Date and description of instrument creating the change |
Packing Credit
Agreement (Hypothecation) dated 18.05.1995 registered on 06.06.1995,
29.07.1998, 15.07.1999 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2.500
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 |
Stock of raw material,
stock in process and finished Goods such as fabrics, threads and trading
goods as merchant exporters. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 13%
per annum. If export beyond
180 days @15% if no export or
short export @20.25% per annum Margin 25% |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National
Bank |
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6) Date and brief description of instrument modifying the charge |
Packing Credit
Agreement (Hypothecation) dated 23.10.1999 (PNB – 724) |
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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. |
Limit enhanced
from Rs. 20.000 millions to Rs. 25.000 millions. Interest @ 13% per annum If export beyond
180 days #15% If no export or
short export @ 20.25% per annum Other terms
remain same. |
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Corporate identity
number (CIN) Foreign company registration number |
U74140DL1973PLC006854 |
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Name of the
Company |
SARA
INTERNATIONAL LIMITED |
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Address |
A 31, Hauz Khas |
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This form is for |
Modification of
charge |
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Type of Charge |
A charge on Counter Indemnity, current and Block Assets |
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Particulars of
the charge holder |
Punjab National
Bank 46, Dohil
Chambers, E-mail: pnbnehru@yahoo.com |
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Nature or
description of the instrument(s) creating or modifying the charge |
Agreement of
general counter indemnity, Agreement Hypothecation of Current Assets and
Agreement of Hypothecation of Movable Assets forming part of Fixed / Block |
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Date of the instrument
creating or modifying the charge |
03.01.2007 |
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Amount secured by
the charge |
Rs. 200.000
millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest As per Bank Rule from
time to time. (b) Terms of
Repayment: On Demand (c) Margin: Nil (d) Extent and
operation of the charge: 100% (e) Others: This
is to secure Bank Guarantee Limit |
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Short particulars
of the property charged (including location of the property) |
Counter Guarantee
of the company against Bank Guarantee Limit Hypothecation of all Present and
future stocks, Raw Materials, Work in Progress, Finished Goods, Consumable
Stores and spares and all present and future Book Debts, Trust Receipts,
Decrees, Moneys, Receivables, Government Securities, Claims, Bill Contracts,
Investment etc and Hypothecation of Movable Assets forming part of Fixed /
Block Assets. |
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Particular of the
present modification |
The Bank Guarantee
Limit stands reduced from Rs. 300.000 millions to Rs. 200.000 millions (with
sub limit of FLC/ ILC Rs. 150.000 millions) |
Website details attached:
Profile
The company is the international trading arm of the Group and is involved in trading of agro commodities, steel and its raw materials, textiles, garments, precious metals and petro chemical products.
Through trading in grains, soyameal extractions and sugar, it has achieved an
unmatched reputation for dependable supplier of guaranteed quality and in time
deliveries. It supplies Steel products and raw materials to a wide base of
manufacturers in Asia Pacific region. The textile division has 12 years of
consistent textiles experience in supplying yarns, fabrics and made ups to the
industries based in Central and
Satisfying it’s customers through the value chain of services it has grown from
a turnover of $ 50,000 in 1990's to 100 million dollars in 2003. The Company is
known for its integrity, commitment to quality and delivery schedule.
Subject also supplies steel products and raw materials to a
wide base of manufacturers in the Pacific region. The textile division has 12
years of consistent textiles experience in supplying yarns, fabrics and
made-ups to the industries based in Central and
Subject is one of the leading traders in agro commodities
such as wheat, sugar, rice and deoiled cake. The Agro commodity Division at
Sara regularly exports a host of agricultural commodities. The company exports
wheat to flour mills in
Sugar
· Offers white refined crystal sugar in Jute/PP bags and also offer raw sugar.
· Offers sugar from ICUMSA 45 to 100.
· Deals in small, medium and large size granules.
Oil Seeds
The company deals with a large variety of oil seed extractions.
· Soya Bean
· Groundnut
· Sunflower
· Rapeseed
· Sesame
Rice
Rice has played an important role in imports of agro division
· Parboiled
· White Long Grain
· Basmati
Steel and Mineral
Its Steel and Mineral Division export steel products such as
billets, wire rod coils, structural and pig iron. The division sources its metals,
minerals and ores from state of the art plants and mining units in
The group’s Metal Division looks after the exports of steel and aluminium products, and its Ore Division specializes in assisting supplies of iron and chrome ore. The company also plays key role in the imports of steel raw materials and processing of flat steel products for exports.
Textiles
This division exports a vast range of raw materials, intermediary products and made ups. It imports cotton and exports yarn, fabrics, made ups and garments.
Yarns
Products offered are 100% cotton yarn, carded and combed, cotton/polyester, cotton/viscose, 100% polyester and OE yarns.
They are exporting their products to Endi International,
Zagerb, MTC, Cakovec, Balient-ES-Tarsa, KFT,
Fabrics
Their cotton, rayon, polyester and silk fabrics are finding their way to the best garment manufacturers and processing houses of Europe.
Taking a step further the company also offers a wide range of soft furnishings and fine fabrics.
Home Furnishing and Made Ups
Home furnishings and home textile items for interior decoration include Bath Linen, Kitchen Linen, Rugs, Cushions, Throws, Curtains, Chair Pads, Quilts, Pillows, Bath Mats, Shower Curtains, Kitchen Items, Table Cloths, Place Mats, Napkins, Aprons, Coasters, Kitchen Mats and other upholstery fabrics.
Carpet and Rugs
The company offers wide range of hand tufted and hand knitted woollen carpets.
Garments
The company exports garments and fashions accessories to
They specialize in 100% cotton knitted T-Shirts and have a capacity of producing 50,000 units per month.
Logistics
The company extends its expertise in transportation, stewarding and storage facilities to its associate world wide. The company manages port operations and vessel chartering for its customers.
Company Vision
In business for more than 15 years now, Sara International Limited. has achieved heights which very few export houses have been able to achieve. To attain this height and to maintain it too, they have refused to compromise on quality and service at every step.
They believe that great companies never stop growing and this is the cause they never grow alone. They help others realize their dreams even as they pursue their own. Great companies are not afraid to innovate, to challenge, to lead; they shine through and take charge of what they have worked so hard for and that which they truly deserve.
Their future lies in associating with great companies and in growing
with them, carrying with them the dreams of people who have invested in us and
have never let them down.
ASSOCIATES
Sara Group
Group
Profile
Sara Group, through its numerous
companies, is involved in the business of international trading of raw
materials, intermediaries and end products. The basket of items which it
exports and imports are in the diverse field of steel, chemicals,
pharmaceuticals, iron ore, agro commodities, textiles, precious metals and
petro chemical products. It also has a strong presence in the area of property
development and have set up state of art Commercial and
The group's foremost company Sara International limited is involved in exports
of wheat, sugar, oil-seed extractions, steel, textiles, precious metals and
petro chemical products.
SARA UNIVERSAL PRIVATE LIMITED
It imports & distributes agricultural products, finished high
quality steel, and steel raw materials. Besides, it provides logistical support
& vessels chartering for the group's trading activities. Sara universal
also offers consultancy and agency support to some of the best-known
multinationals.
Sara Developers is in the foray of property development and specializes
in conceptualizing and developing residential and business complexes.
SARA TRADERS & DISTRIBUTORS LIMITED
Sara Traders and Distributors are involved in Liquor Trading and
represent some of the finest names in the international liquor business.
SARA TRANS ENGINEERING EXPORTS PRIVATE LIMITED
The baby of the group, Sara Trans has recently set up a 100% Export
oriented Manufacturing Unit catering to the needs of specialized bags for
musical instruments, computer and sports industry.
The group is proud of its professional hallmark of integrity and
commitment to achieve Zero defect quality. It offers products and services of
international standards and has had close association with some of the world's
best-known multinational companies. Sara represents Noble Group of
The group operates through its various offices in
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. 39.82 |
|
|
1 |
Rs. 80.85 |
|
Euro |
1 |
Rs. 56.22 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
68 |
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 |
|