MIRA
INFORM REPORT
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Report Date : |
28.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
PRATIBHA SYNTEX LIMITED |
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Formerly Known As : |
PRATIBHA SYNTEX PRIVATE LIMITED |
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Registered Office : |
Plot No.399 GIDC Pandesais District Surat, Gujarat |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of Incorporation : |
07.10.1982 |
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Com. Reg. No.: |
11-5565 |
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CIN No.: [Company
Identification No.] |
U17119GJ1982PLC005565 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
BPLP01476G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing and Export of Cotton Yarn, Synthetic Yarn, Fabrics and Knitting Fabrics. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4834232 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Profit margin is low. The company can be considered normal for business dealings at usual trade terms and conditions |
INFORMATION PARTED
BY
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Name : |
Mr. Subhash Jha |
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Designation : |
Export Manager/ Yarn Div. |
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Date : |
25.04.2008 |
LOCATIONS
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Registered Office : |
Plot No.399 GIDC Pandesais District Surat, Gujarat, India |
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Corporate Office : |
301, Acme Plaza, 3rd Floor, Andheri-Kurla Road, Opposite Sangam Cinema, Mumbai – 400 059, Maharashtra, India |
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Tel. No.: |
91-22-256921428/28361464/ 28314850/ 28314853/66921428/283145850 |
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Fax No.: |
91-22-28361464 |
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E-Mail : |
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Website : |
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Location : |
Rented |
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Factory/ Manufacturing Unit : |
Plot No. 4, Industrial Growth Centre, Kheda – 454 774, Pitampur, District Dhar, Madhya Pradesh, India |
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Tel. No.: |
91-7292-404362-64/ 404362-3/ 404357 |
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Fax No.: |
91-7292-256340-1 |
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E-Mail : |
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Area : |
70 acres approx |
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Location : |
Leased |
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Branches : |
Delhi Office |
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Tel. No.: |
91-11-41616465, 26816790,32449714 |
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Fax No.: |
91-11-41616480 |
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E-Mail : |
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Location : |
Rented |
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Branches : |
Indore Office |
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Tel. No.: |
2562228-9 |
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Fax No.: |
91-731-2562227 |
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E-Mail : |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Shiv Kumar Chaudhary |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Snehkar Bansal |
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Designation : |
Whole time
Director |
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Name : |
Mr. Ram Kishan Sharma |
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Designation : |
Director |
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Name : |
Mr. S. Ananth Krishnan |
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Designation : |
Nominee (IDBI) |
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Name : |
Mr. Sanjay Sarkar |
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Designation : |
Nominee (EXIM) |
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Designation : |
Mr. Aditya Goyal |
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Address : |
Whole time
Director |
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Name : |
Mr. Shreyaskar
Chaudhary |
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Designation : |
Vice Chairman and
Joint Managing Director |
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Name : |
Mr. N S Nirban |
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Designation : |
Executive
Director |
KEY EXECUTIVES
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Name : |
Mr. N K Joshi |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Export of Cotton Yarn, Synthetic Yarn, Fabrics and Knitting Fabrics. |
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Products : |
· Yarn · Fabrics · Knitting Fabrics · Dried Fabrics · Knitted Garments |
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Exports : |
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Products : |
· Cotton Yarn · Garment |
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Countries : |
· USA · UK · Germany · Canada · South Africa · Far East · Middle East · Korea |
GENERAL
INFORMATION
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Suppliers : |
· Blow Room – Crosrol, UK · Crosrol, UK · Comber - Toyoda, Japan · Toyoda, Japan - Draw Frame · Knitting - Fukuhara (Monarch), Japanterrot, Germany · Speed Frame - Texmaco Howa, India · Ring Frame - Toyoda, Japan · Auto Coner - Murata, Japan · Yarn Conditioning - Xorella, Switzerland |
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No. of Employees : |
Around 3000 |
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Bankers : |
· State Bank of India Mumbai Main Branch, India · Canada Bank Nawab Bazar Branch, India |
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Banking Relations
: |
Satisfactory |
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Auditors : |
Kanji R. Agrawal and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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45000000 |
Equity Shares |
Rs.10/- each |
Rs.450.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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17017611 |
Equity Shares |
Rs.10/- each |
Rs.170.176 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
170.176 |
170.200 |
140.200 |
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2] Share Application Money |
102.100 |
0.000 |
0.000 |
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3] Reserves & Surplus |
936.282 |
746.100 |
755.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1208.558 |
916.300 |
895.600 |
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LOAN FUNDS |
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1] Secured Loans |
2342.709 |
1811.900 |
1691.100 |
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2] Unsecured Loans |
138.295 |
88.200 |
84.000 |
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TOTAL BORROWING |
2481.004 |
1900.100 |
1775.100 |
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DEFERRED TAX LIABILITIES |
153.226 |
0.000 |
0.000 |
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TOTAL |
3842.788 |
2816.400 |
2670.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1877.593 |
1913.800 |
1938.900 |
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Capital work-in-progress |
737.076 |
76.700 |
35.300 |
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INVESTMENT |
16.548 |
16.600 |
12.900 |
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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 |
971.722
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662.200 |
471.100 |
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Sundry Debtors |
303.066
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245.600 |
240.400 |
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Cash & Bank Balances |
54.172
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68.000 |
28.000 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
361.225
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332.800 |
270.600 |
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Total
Current Assets |
1690.185
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1308.600 |
1010.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
460.916
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469.800 |
304.600 |
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Provisions |
17.698
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29.500 |
21.900 |
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Total
Current Liabilities |
478.614
|
499.300 |
326.500 |
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Net Current Assets |
1211.571
|
809.300 |
683.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3842.788 |
2816.400 |
2670.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
3847.514 |
3447.900 |
3023.600 |
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Other Income |
124.910 |
29.300 |
36.800 |
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Total Income |
3972.424 |
3477.200 |
3060.400 |
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Profit/(Loss) Before Tax |
215.871 |
159.000 |
66.900 |
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Provision for Taxation |
25.685 |
15.100 |
5.300 |
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Profit/(Loss) After Tax |
190.186 |
143.900 |
61.600 |
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Expenditures : |
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Manufacturing Expenses |
2278.266 |
336.600 |
250.000 |
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Administrative Expenses |
540.181 |
206.900 |
178.800 |
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Raw Material Consumed |
257.227 |
2046.800 |
1893.600 |
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Miscellaneous Expenses |
304.378 |
3.100 |
0.700 |
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Salaries, Wages, Bonus, etc. |
217.545 |
187.600 |
169.400 |
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Interest |
0.000 |
187.500 |
163.600 |
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Power & Fuel |
0.000 |
179.400 |
148.700 |
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Depreciation & Amortization |
158.956 |
155.700 |
151.200 |
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Other Expenditure |
0.000 |
14.600 |
37.500 |
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Total
Expenditure |
3756.553 |
3318.200 |
2993.500 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
4.79
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4.14 |
2.01 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.61
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4.61 |
2.21 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.05
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4.93 |
0.02 |
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Return on Investment (ROI) (PBT/Networth) |
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0.18
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0.17 |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.45
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2.62 |
2.35 |
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Current Ratio (Current Asset/Current Liability) |
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3.53
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2.62 |
3.09 |
LOCAL AGENCY
FURTHER INFORMATION
- Operational Performance
The operations of the Company for the year under review have been satisfactory.
The Company recorded turnover of Rs.3447.864 millions and Profit before Tax of
Rs.158.946 millions, an increase of 14.03% and 137.70% respectively over the
previous year. The Company's exports including incentives increased to
Rs.2356.567 millions from Rs.2159.340 millions in the previous year, an
increase of 11.13% over the previous year.
- Expansions
In the post quota regime,
state-of-the-art capacity is the name of the game for globally recognised
companies like Subject. The Company has reinforced its commitment to the global
textile market by making a significant investment of Rs.3490 millions in
different segments of textile such as Terry Towel (Home Textile), Open End
Spinning; expansion in existing Knitting, Dyeing and Garment facilities and Gas
Based Power Project to cater existing and proposed requirements of power. The
essential resources for implementing the expansion plan have been tied up by
way of Term Loans of Rs.2330 millions all under Technological Upgradation Fund
Scheme (TUFS) and remaining fund is proposed to be resourced through Initial
Public Offer (IPO) and Accruals.
The 'Bhoomi Poojan' ceremony for all the above new Projects has been performed
on the auspicious clay of Ram Navami on 7th April 2006, and civil construction
work has been commenced.
To be globally competitive, the Company has taken initiatives to expand and
optimise its existing capacities. The Company has always believed that textile
industry in India holds enormous promise that can be realised only with
substantial investment in world class plants for providing the good
quality.
- Further Issue of Capital
During the period
under review, the Company had allotted 30,00,000 equity shares of Rs.10/- each
for cash at par aggregating to Rs.30 millions to the promoters and their
associates on preferential basis in pursuance of the special resolution passed
by the shareholders in its extra-ordinary general meeting held on 24th August
2005. With issue of these equity shares, the paid up capital of the Company has
increased to Rs.170.176 millions comprising of 1,70,17,611 equity shares of
Rs.10/-each.
Website Details:
Origin
and Growth
Subject
launched its operations in the year 1997. India's first vertical manufacturing
set up, subject made its foray into organic farming in the year 1999. In the
following year, the company adopted forward integration into Knitting-Dyeing-Garments
in 2000. Today, Subject is proud to be an Integrated Textile Company having a
turnover of Rs.3120 millions and interests in raw cotton, cotton yarn,
synthetic yarn, knitted fabric and garments.
Awards
- Niryat Shree Puraskar Presented By
Indian Council For Small and Medium Exporters
- Export Performance Award For 1993-94 By
Canara Bank, Bangalore
- Niryat Shree Award For 1997-98 By
Federation Of Indian Export Organizations
- Niryat Shiromani Puraskar By Indian
Council Of Small And Medium Exporters (Icsme).
- Raj Bhawan Aizawl Shield Presented By
His Excellency The Governor Of Mizoram- Shri Amolak Rattan Kohli
Best Performance Award For 1998 -99 By Concor, Icd, Pithampur - Sanjivani Kosh Award By State Bank Of
Indore For Social Work
- Icmf's Award For Excellence For 2002-03
- Udyog Ratna By Phd Chamber Of Commerce
And Industry Centenary Celebrations
Certification
- Subject is certified for Oeko-Tex
Standard 100 that sets yardsticks for yarns, fabrics and textile products
of all kinds.
- Subject is proud to possess WRAP certification which
it has got by complying to stringent principles of Workplace Regulations.
- Subject has been awarded ISO 9001
certification, which confirms that subject products enjoy a worldwide
recognition.
Management
Guiding the subject ship with its acuity of vision and strategic
direction is the company's top management team that perfectly characterizes the
thought:
- About Vasudha
When they heal the Earth they heal represents the spirit,
the reason and the relevance of the Vasudha Project-the massive organic farming
programme run by subject. The project aims to grow clean and eco-friendly
cotton to produce a clean cotton garment, spread environmental sensibilities
amongst people, generate direct/ indirect employment and ensure the farmers'
welfare.
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.40.18 |
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UK Pound |
1 |
Rs.79.25 |
|
Euro |
1 |
Rs.62.90 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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
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 |
|