MIRA
INFORM REPORT
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Report Date : |
23.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEW LIGHT APPARELS LIMITED |
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Registered Office : |
B-160, Bawana Industrial Area, Phase-IVm Delhi-110039 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.01.1995 |
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Com. Reg. No.: |
55-64005 |
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CIN No.: [Company
Identification No.] |
L74899DL1995PLC064005 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELN05348A / DELN06030D |
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PAN No.: [Permanent
Account No.] |
AAACN2162N |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer and exporter of Woolen Gloves, Industrial
Gloves, Nylon Socks, Woolen and Cotton Socks. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 130000 |
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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 and reputed company having satisfactory
track. Directors are reported as experience 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. |
LOCATIONS
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Registered Office/ Factory : |
B-160, Bawana Industrial Area, Phase-IVm Delhi-110039, India |
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Tel. No.: |
91-11-27761855/ 27761856 |
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Fax No.: |
91-11-45613882 |
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E-Mail : |
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Website : |
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Brach office: |
GC-25, Shivaji Enclave, Behind Shivaji College, Raja Garden, New
Delhi-110027, India |
DIRECTORS
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Name : |
Mr. Sandeep Makkad |
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Designation : |
Director |
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Address : |
D – 10 Rajouri Garden, New Delhi – 110027, India |
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Date of Birth/Age : |
12.12.1971 |
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Date of Appointment : |
03.01.1995 |
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Name : |
Mr. Gurcharan Lal Makkad |
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Designation : |
Chairman cum Managing Director |
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Address : |
D – 10 Rajouri Garden, New Delhi – 110027, India |
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Date of Birth/Age : |
20.01.1945 |
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Date of Appointment : |
03.01.1995 |
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Name : |
Mr. Rajnish Makkad |
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Designation : |
Director |
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Address : |
D – 10 Rajouri Garden, New Delhi – 110027, India |
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Date of Birth/Age : |
13.12.1971 |
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Date of Appointment : |
02.08.2004 |
SHAREHOLDING
PATTERN
Equity Share Breakup (Percentage of Total Equity)
As on 29.09.2007
|
Category |
|
Percentage |
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Bodies corporate ( not mentioned above) |
|
3.00 |
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Directors or relatives of directors |
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47.00 |
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Other top fifty (50) shareholders (other than listed
above) |
|
50.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and exporter of Woolen Gloves, Industrial
Gloves, Nylon Socks, Woolen and Cotton Socks. |
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Products : |
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Exports : |
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Countries : |
USA, UK, UAE, Europe and Australia |
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Imports : |
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Countries : |
UK, USA, Czech Republic and Japan |
GENERAL
INFORMATION
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No. of Employees : |
100 |
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Bankers : |
Canara Bank ,
Tagore Garden, New Delhi – 110027, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Vinod Bhalla and Company Chartered Accountants |
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Address : |
107, Harsha House, Karampura Commercial Complex, New Delhi – 110015,
India |
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Memberships : |
AEPC, IEC |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 35.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2723800 |
Equity Shares |
Rs. 10/- each |
Rs. 27.238
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
27.238 |
27.238 |
27.238 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.749 |
0.224 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
[0.295] |
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NETWORTH |
27.987 |
27.462 |
26.943 |
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LOAN FUNDS |
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1] Secured Loans |
4.092 |
5.457 |
3.794 |
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2] Unsecured Loans |
0.109 |
0.497 |
0.578 |
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TOTAL BORROWING |
4.201 |
5.954 |
4.372 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
32.188 |
33.416 |
31.315 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4.649 |
4.873 |
4.763 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.468 |
0.268 |
0.250 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
12.575
|
7.114
|
4.651 |
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Sundry Debtors |
20.190
|
22.970
|
21.633 |
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Cash & Bank Balances |
0.051
|
0.359
|
0.529 |
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Other Current Assets |
0.000
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0.000
|
0.000 |
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Loans & Advances |
0.629
|
0.542
|
0.153 |
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Total
Current Assets |
33.445
|
30.985
|
26.966 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
6.374
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2.710
|
0.664 |
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Provisions |
0.000
|
0.000
|
0.000 |
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Total
Current Liabilities |
6.374
|
2.710
|
0.664 |
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Net Current Assets |
27.071
|
28.275
|
26.302 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
32.188 |
33.416 |
31.315 |
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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 |
23.597 |
17.647 |
10.822 |
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Other Income |
0.045 |
0.312 |
2.022 |
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Total Income |
23.642 |
17.959 |
12.844 |
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Profit/(Loss) Before Tax |
0.541 |
0.561 |
0.659 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
0.541 |
0.561 |
0.659 |
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Expenditures : |
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Raw Material Consumed |
16.337 |
11.523 |
6.887 |
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Managerial Remuneration |
0.000 |
0.408 |
0.432 |
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Depreciation & Amortization |
6.765 |
0.771 |
0.630 |
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Other Expenditure |
0.000 |
4.696 |
4.236 |
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Total Expenditure |
23.102 |
17.398 |
12.185 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
2.29
|
3.12
|
5.13 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.29
|
3.18
|
6.09 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.42
|
1.56
|
2.08 |
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Return on Investment (ROI) (PBT/Networth) |
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0.02
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0.02
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0.02 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.38
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0.32
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0.19 |
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Current Ratio (Current Asset/Current Liability) |
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5.25
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11.43
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40.61 |
LOCAL AGENCY
FURTHER INFORMATION
The Registered office of the company has been shifted from 218, Naharpur
Sector 7, Rohini, New Delhi-110085, India w.e.f. 14.05.2008
History
New Light Apparels Limited, promoted by Gurcharan Lal Makkad
and Amrik Lal Makkad was incorporated in 1995. The company took over the
running business of "New Light Hosiery Manufacturing Works," the
partnership concern of the promoters. It is being headed by Gurcharan Lal
Makkad as Chairman cum Managing Director.
It is presently engaged in the manufacture of socks with 59 machines in
operation. It proposes to expand its capacity from 59 machines to 84 machines
by way of adding 25 computerised machines.
The company came out with a public issue of 17,50,000 equity shares of Rs 10
each for cash at par aggregating to Rs 17.500 Millions in Jan.'96, to meet its
expansion plan.
Bankers Charges
Report as per Registry
|
Name of the company |
NEW LIGHT
APPARELS LIMITED |
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Presented By |
Canara Bank,
Tagore Garden, Delhi |
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1) Date and description of instrument creating the change |
Agrement advances against Stock and Book Debts as Prime Security dated
03.08.1995 registered on 27.10.1995 and modified on 10.02.1997 for collateral
security of machinery and generator registered on 03.04.1997 and again
modified on 04.02.2005 for equitable mortgage of immovable properties of the
company registered on 01.03.2005 |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 6.800 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 |
Hypothecation by way of collateral security of all plant and
machinery, motor vehicles and tools and accessories of the company already
purchased as described in Schedule ‘A’ of the agreement as also the machinery
etc. to be purchased hereinafter particulars whereof will be furnished later
erected to be erected kept be or in transit for being erected at the premises
of the borrower descried in the schedule hereto at Shed No. 58 HSIDC, Mutual
Industrial Area, District Sonepat or whosesoever it may be. Equitable mortgage of immovable properties of the company situated at
Shed No. 58 HSIDC, Mutual Industrial Area, District Sonepat Haryana together
with building, structure, furniture, firings machineries standings /
installed thereon and to be erected / installed and put up in future. |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
The above is to secure various credit facilities of Rs. 6.800 Millions
granted to the company. Interest shall be @ 3.50 % p.a. above on going PLR
with a minimum of 14.25 % p.a. compounded monthly provided that the interest
rates made by the bank from time to time with an overdue interest @ 2 % p.a.
over an above the interest rate charged in the account in case of default. |
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5) Name and Address and description of the person entitled to the
charge. |
Canara Bank, Tagore Garden, Delhi |
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6) Date and brief description
of instrument modifying the charge |
Supplemental collateral security agreement dated 19.09.2005 |
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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. |
All amount payable under OCC/ ODBD limit of Rs. 3.000 Millions
including Adhov OCC / ODBD limit of Rs. 1.000 Millions together with all
interest, costs, charges, expenses etc, stand collaterally secured by the
following. Hypothecation by way of collateral security of all plant and
machinery, motor vehicles and tools and accessories of the company already
purchased as described in Schedule ‘A’ of the agreement as also the machinery
etc. to the machinery etc. to be purchased hereinafter particulars whereof
will be furnished later erected to be kept or in transit for being erected at
the premises of the borrower described in the schedule ‘B’ thereto at Shed No. 58, HSIDC, Murthal
Industrial Area, Sonepat, Haryana and whosesoever it may be. Equitable mortgage of immovable properties of the company situated at
Shed No. 58, HSIDC, Murthal Industrial Area Sonepat, Haryana together with
buildings, structures, fixtures, fittings, machineries standings / installed
thereon and to be erected / installed and put up in the future. Other terms and conditions remained the same. |
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
90052803 |
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Corporate
identity number of the company |
L74899DL1995PLC064005 |
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Name of the
company |
NEW LIGHT APPARELS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
B-160, Bawna Sector 4, Bawna Industrial Area, New Delhi-110039, India |
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Type of charge |
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Particular of
charge holder |
Canara Bank Tagore Garden, New
Delhi – 110027, India |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental
Common Hypothecation Agreement dated 14.07.2008 and Letter evidencing
extension of equitable mortgage alongwith Schedule ‘A’ dated 14.07.2008 |
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Date of
instrument Creating the charge |
14.07.2008 |
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Amount secured by
the charge |
Rs. 4.300
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest @15% p.a. at
monthly rests Terms of
repayment Payable on
demand. Margin 25 % on Stocks
and 40 % on Book debts not older than 90 days Extent operation
of the charge 100 % Others To secure all
amounts payable under enhanced OCC / ODBD limit of Rs. 4.300 Millions granted
to the Company. |
|
Date of latest
modification prior to the present modification |
07.07.2007 |
As Per
Website
Profile
Established in 1959, subject
is engaged in the manufacture and export of high quality Woolen Gloves,
Industrial Gloves, Nylon Socks, Woolen and Cotton Socks. Industrial Gloves
manufactured by them are extensively used in the Automobile Industry, Construction
Industry, Shipping Industry, Engineering Industry, Electronics Industry and
Packaging Industry. Today their company enjoys a prominent position in the
market which is due to high quality products supplied by them. “NEW LIGHT” and “CREST” are well recognized brands of
the company.
Their goodwill in the market is due to the untiring efforts and enterprising
spirit of Mr. Gurcharan Lal Makkad, their Chairman, who is a pioneer in this
field and has held many eminent positions in the regional hosiery confederations.
He has been made the Regional Chairman of Furuta Shoji Company Limited, Japan for marketing their used
machines and hosiery product in the Indian Subcontinent.
- Used Gloves Knitting Machines
- 100% Cotton Safety Gloves
- Industrial Safety Gloves
- Woolen Gloves
- Nylon Gloves
- 100% Cotton Socks
- Cotton Blended Socks
- Nylon Socks
- Dress Socks
Quality Control
Their Company is rated among the top five manufacturing
units in India (Source: Indian Hosiery Report 1996). They are an environment friendly company and they
are proud to say that they produce 100% recyclable, eco-friendly products.
Keeping in mind the growing demands of the market they have set for themselves
high standards of excellence. Quality is something they do not compromise on
and they produce goods which meet international standards. Their products are
being exported to countries of the European Union and USA.
Infrastructure
Well equipped with a state-of-art manufacturing unit they
are in a position to produce items of varying sizes and specification according
to clients' requirements. Their production unit is equipped with machinery
imported from UK, USA, Czech Republic & Japan, and has an installed
capacity of producing 2.500 million pairs of gloves and 7 million pairs of
socks per annum.
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 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.43.38 |
|
UK Pound |
1 |
Rs.81.34 |
|
Euro |
1 |
Rs.64.55 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|