MIRA
INFORM REPORT
|
Report Date : |
07.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NEO CORP INTERNATIONAL LIMITED |
|
|
|
|
Formerly Known As : |
NEO SACK LIMITED |
|
|
|
|
Registered Office : |
Sector 1, Plot No.62/63, Industrial Area, Pithampur – 454775, Madhya
Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
15.02.1985 |
|
|
|
|
Com. Reg. No.: |
002755 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24132MP1985PLC002755 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BPLN00154A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACN6513A |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacture of Plastic Woven and Knitted Products |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 978244 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established and reputed company having fine track.
Trade relations are fair. General financial position is satisfactory.
Business is active. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office/ Factory : |
Sector 1, Plot No.62/63, Industrial Area, Pithampur – 454775, Madhya
Pradesh, India |
|
Tel. No.: |
91-7292-252284/ 252278/ 501632/33 |
|
Fax No.: |
91-7292-500499 |
|
E-Mail : |
|
|
Website : |
http://www. |
|
|
|
|
Administrative Office : |
Trivedi Chambers 2, Maharani Road, Indore, Madhya Pradesh, India |
|
Tel. No.: |
91-7292-4046928 |
DIRECTORS
|
Name : |
Mr. K S Trivedi |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sunil Trivedi |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P Sharma |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. D. Trivedi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shrawan Kumar Patodi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K V Rekha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ladharam Patel |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. V Latha |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
Promoters |
3188904 |
30.71 |
|
Bank, Mutual Funds and Fis |
7800 |
0.08 |
|
Domestic Corporate Bodies |
2837783 |
27.32 |
|
Indian Public |
4331813 |
41.72 |
|
NRIs/OCBs/Flls |
17900 |
0.17 |
|
|
|
|
|
Total |
10384200 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Plastic Woven and Knitted Products |
||||||
|
|
|
||||||
|
Products : |
|
GENERAL
INFORMATION
|
Bankers : |
|
||||||||||||||||||||
|
|
|
||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
M Mehta and Company Chartered Accountant |
|
Address : |
Indore |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5197400 |
Equity Shares |
Rs.10/- each |
Rs.51.974
Millions |
|
270750 |
Equity Shares |
Rs.10/- each |
Rs.2.707
Millions |
|
4916050 |
Equity Shares |
Rs.10/- each |
Rs.49.160
Millions |
|
|
Less : Calls in arrears |
- |
Rs.33.365
Millions |
|
|
Add : Shares Forfieted |
- |
Rs.0.118
Million |
|
|
|
|
|
|
|
Total |
|
Rs.70.594 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
70.594 |
70.419 |
70.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
173.967 |
169.338 |
169.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
244.561 |
239.757 |
239.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
161.995 |
153.559 |
110.200 |
|
|
2] Unsecured Loans |
6.994 |
8.530 |
0.200 |
|
|
TOTAL BORROWING |
168.989 |
162.089 |
110.400 |
|
|
DEFERRED TAX LIABILITIES |
12.883 |
12.437 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
426.433 |
414.283 |
349.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
133.816 |
131.409 |
90.000 |
|
|
Capital work-in-progress |
1.117 |
16.468 |
8.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.100 |
0.100 |
0.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
172.082
|
179.836 |
138.400 |
|
|
Sundry Debtors |
235.378
|
214.041 |
246.600 |
|
|
Cash & Bank Balances |
9.493
|
8.293 |
10.200 |
|
|
Other Current Assets |
32.103
|
16.572 |
0.000 |
|
|
Loans & Advances |
19.395
|
7.492 |
28.900 |
|
Total
Current Assets |
468.451
|
426.234 |
424.100 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
162.623
|
157.351 |
169.900 |
|
|
Provisions |
14.428
|
2.577 |
3.000 |
|
Total
Current Liabilities |
177.051
|
159.928 |
172.900 |
|
|
Net Current Assets |
291.400
|
266.306 |
251.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.100 |
|
|
|
|
|
|
|
|
TOTAL |
426.433 |
414.283 |
349.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
674.819 |
579.581 |
517.300 |
|
|
Other Income |
0.986 |
0.479 |
16.000 |
|
|
Total Income |
673.833 |
580.060 |
533.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
18.983 |
2.278 |
1.600 |
|
|
Provision for Taxation |
7.455 |
1.038 |
0.300 |
|
|
Profit/(Loss) After Tax |
11.528 |
1.240 |
1.300 |
|
|
|
|
|
|
|
|
Export Value |
290.828 |
231.204 |
NA |
|
|
|
|
|
|
|
|
Import Value |
18.492 |
0.392 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
56.984 |
48.877 |
391.200 |
|
|
Administrative Expenses |
6.481 |
5.851 |
45.600 |
|
|
Raw Material Consumed |
19.291 |
14.188 |
0.200 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
17.900 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
23.800 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
17.800 |
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
0.000 |
|
|
Materials |
477.771 |
419.744 |
0.000 |
|
|
Payment to Auditors |
57.915 |
62.181 |
0.000 |
|
|
Interest |
19.039 |
12.815 |
0.000 |
|
|
Insurance Expenses |
16.317 |
12.905 |
0.000 |
|
|
Power & Fuel |
0.000 |
0.000 |
0.800 |
|
|
Depreciation & Amortization |
1.052 |
1.221 |
2.900 |
|
|
Other Expenditure |
0.000 |
0.000 |
13.500 |
|
Total Expenditure |
654.850 |
577.782 |
513.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
|
|
|
|
|
Sales Turnover |
243.400 |
278.000 |
281.800 |
|
Other Income |
0.100 |
0.100 |
0.200 |
|
Total Income |
243.500 |
278.100 |
282.000 |
|
Total Expenditure |
215.300 |
239.100 |
239.200 |
|
Operating Profit |
28.200 |
39.000 |
42.800 |
|
Interests |
5.700 |
5.200 |
6.500 |
|
Gross Profit |
22.500 |
33.800 |
36.300 |
|
Depreciation |
4.300 |
4.400 |
4.600 |
|
Tax |
6.600 |
8.300 |
12.200 |
|
Reported PAT |
12.000 |
19.000 |
21.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
Debt-Equity Ratio |
|
0.68
|
0.57 |
0.42 |
|
Long Term Debt-Equity Ratio |
|
0.26
|
0.17 |
0.06 |
|
Current Ratio |
|
1.57
|
1.58 |
1.60 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
2.54
|
2.53 |
2.56 |
|
Inventory |
|
3.83
|
3.64 |
3.86 |
|
Debtors |
|
3.00
|
2.52 |
2.16 |
|
Interests Cover Ratio |
|
1.92
|
1.18 |
1.16 |
|
Operating Profit Margin (%) |
|
8.55
|
5.23 |
5.28 |
|
Profit Before Interests and Tax Margin (%) |
|
5.84
|
3.00 |
2.67 |
|
Cash Profit Margin (%) |
|
4.42
|
2.47 |
2.88 |
|
Adjusted Net Profit Margin (%) |
|
1.70
|
0.24 |
0.27 |
|
Return on Capital Employees (%) |
|
9.66
|
4.63 |
4.02 |
|
Return on net Worth (%) |
|
4.75
|
0.58 |
0.58 |
LOCAL AGENCY
FURTHER INFORMATION
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
OVERALL
REVIEW
The Company is engaged in the manufacture of plastic woven
and knitted products. With completion of expansion
Programme, the Company has added more value added designs of
flexible Intermediate Bulk Container. The overall demand in domestic and export
market is growing.
OUTLOOK,
OPPORTUNITIES AND THREATS
The appreciation of Rupee is a major concern. However,
Company's exposure in Euro and Pound market and similar appreciation of
currencies of competing countries has largely reduced the effect.
The Company has planned an expansion programme for producing
technical textiles viz geo-textiles and shade nets.
The Government of India has laid special emphasis for
increasing the production of technical textiles. The current product range is
based on technical textiles and therefore it would be a logical extension to
move into other technical textiles to get better value additions.
Note on Accounts:
Estimated amount of contracts remaining to be executed on
capita! Account and not provided for Rs. Nil/-
Contingent Liabilities not provided for in respect of:
|
|
31.03.2007
(Rs.
In Millions) |
|
Letters of Credit opened |
1.810 |
|
Bank Guarantee issued by banks |
1.484 |
|
Income tax demands to the extent disputed in appeals upto the assessment year 2004-05 |
2.700 |
|
Excise and Customs due under various show issued by the authorities is disputed by the company is hopeful of getting the matter settled cause notices company. The in its favor. |
4.003 |
|
Sales tax demands under appeal |
Nil |
|
Commercial tax demands in appeals |
Nil |
Fixed
Assets:
- Land and Site
Development
- Plant and
Machinery
- Building
- Electricity
Installation
- Office
Equipment
- Vehicles
- Fire
Extinguisher
- Furniture and
fixture
- Weighing
Scales
- Computer
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 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.39.97 |
|
UK Pound |
1 |
Rs.79.78 |
|
Euro |
1 |
Rs.62.60 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|