MIRA
INFORM REPORT
|
Report Date : |
06.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
INDIAN CROPICALS PRIVATE LIMITED |
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Registered Office : |
309, Meghdoot, 94 Nehru Place, New Delhi – 110 019 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.07.1978 |
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Com. Reg. No.: |
55-9117 |
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CIN No.: [Company
Identification No.] |
U74899DL1978PTC009117 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELI00093C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Handicraft, Glassware, Iron, Natural
Stone. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 34000 |
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Status : |
Moderate |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. Company’s
profitability is under severe pressure. Trade relations are fair. No
complaints have been heard. The company can be considered good for small to mediocre business
dealings. |
INFORMATION PARTED
BY
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Name : |
Mr. A K Rai |
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Designation : |
Account Manager |
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Date : |
05.12.2008 |
LOCATIONS
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Registered Office : |
309, Meghdoot, 94 Nehru Place, New Delhi – 110 019, India |
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Tel. No.: |
91-11-26214187 / 51613285 |
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Mobile No.: |
91-9810007594 |
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Fax No.: |
91-11-28613290 / 26212815 |
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E-Mail : |
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Area : |
640 Sq. ft. |
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Location : |
Rented |
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Head Office : |
D 10/6, Okhla Industrial Area, Phase 2, New Delhi - 110020, India |
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Tel. No.: |
91-11-51613285 / 51613288 |
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Fax No.: |
91-11-51613290 / 21613290 |
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Factory : |
F-57, Okhla Industrial Area, Phase I, New Delhi – 110 020, India |
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Tel. No.: |
91-11-30887029 |
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Fax No.: |
91-11-30887030 |
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Area : |
11000 Sq. ft. |
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Location : |
Rented |
DIRECTORS
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Name : |
Mr. Ashok Kapur |
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Designation : |
Managing Director |
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Address : |
112, Sector 2, Panchkula – 134 112, Haryana, India |
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Date of Birth/Age : |
13.09.1937 |
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Qualification : |
BE – IIT |
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Date of Appointment : |
10.07.1978 |
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Name : |
Mr. Atul Kapur |
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Designation : |
Director |
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Address : |
KH No. 694, Village Sultanpur 15, Sultanpur Farm, New Delhi – 100 030,
India |
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Date of Birth/Age : |
16.10.1965 |
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Qualification : |
MBA |
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Date of Appointment : |
08.02.1999 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 28.09.2007)
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Names of Shareholders |
No. of Shares |
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Ashok Kapur |
1 |
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Rohini Kapur |
10 |
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Atul Kapur |
1289 |
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Total |
1300 |
Equity share
breakup (percentage of total equity)
(As on
30.09.2007)
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Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Handicraft, Glassware, Iron, Natural
Stone. |
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Products : |
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Exports : |
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Products : |
Handicraft, Glassware, Iron, Natural Stone |
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Countries : |
·
United States ·
Europe ·
Canada |
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Imports : |
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Products : |
Painting |
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Countries : |
Germany |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
Advance |
GENERAL
INFORMATION
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Customers : |
·
Wholesalers ·
Retailers ·
Manufacturer |
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No. of Employees : |
55 (In Office 5 and In Factory 50) |
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Bankers : |
·
HSBC Bank, G K Branch, New Delhi Vijaya Bank, D-65, Hauz Khas, New Delhi –
110 016, India |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Sudarshan Arora Chartered Accountants |
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Address : |
S. Arora and Company 187, Satya Niketan, New Delhi – 110 021, India |
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Tel. No.: |
91-11-65710327 |
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Mobile No.: |
91-9810380659 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000 |
Equity Shares |
Rs.100/- each |
Rs.0.500 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1300 |
Equity Shares |
Rs.100/- each |
Rs.0.130
million |
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 |
0.130 |
0.130 |
0.130 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6.638 |
9.809 |
6.448 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6.768 |
9.939 |
6.578 |
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LOAN FUNDS |
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1] Secured Loans |
2.895 |
0.000 |
7.000 |
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2] Unsecured Loans |
0.600 |
0.000 |
1.900 |
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TOTAL BORROWING |
3.495 |
0.000 |
8.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10.263 |
9.939 |
15.478 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3.493 |
4.367 |
4.137 |
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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 |
1.664 |
0.431 |
0.373 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1.402
|
0.669 |
0.303 |
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Sundry Debtors |
3.647
|
4.415 |
10.408 |
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Cash & Bank Balances |
1.619
|
1.700 |
1.998 |
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Other Current Assets |
0.010
|
0.033 |
1.135 |
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Loans & Advances |
2.363
|
1.935 |
2.911 |
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Total
Current Assets |
9.041
|
8.752 |
16.755 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2.151
|
2.029 |
4.453 |
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Provisions |
1.784
|
1.582 |
1.334 |
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Total
Current Liabilities |
3.935
|
3.611 |
5.787 |
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Net Current Assets |
5.106
|
5.141 |
10.968 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10.263 |
9.939 |
15.478 |
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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 |
44.784 |
120.226 |
NA |
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Other Income |
0.764 |
0.218 |
NA |
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Total Income |
45.548 |
120.444 |
NA |
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Profit/(Loss) Before Tax |
(4.093) |
5.624 |
NA |
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Provision for Taxation |
(0.922) |
0.264 |
NA |
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Profit/(Loss) After Tax |
(3.171) |
5.360 |
NA |
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Earnings in Foreign Currency : |
44.468 |
120.008 |
81.095 |
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Expenditures : |
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Cost of Goods Sold |
24.197 |
75.127 |
NA |
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Testing Charges |
0.055 |
0.167 |
NA |
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Salaries, Wages, Bonus, etc. |
4.052 |
5.122 |
NA |
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Bank charges and Commission |
0.587 |
1.253 |
NA |
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Postage and Telecommunication |
0.530 |
0.513 |
NA |
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Staff Welfare |
0.174 |
0.180 |
NA |
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Commission on Sales |
0.766 |
0.221 |
NA |
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Miscellaneous Expenses |
0.205 |
0.181 |
NA |
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Depreciation & Amortization |
0.904 |
1.004 |
NA |
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Other Expenditure |
18.171 |
31.052 |
NA |
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Total Expenditure |
49.641 |
114.820 |
NA |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
(6.96)
|
4.45 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
(9.14)
|
4.68 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(32.66)
|
42.87 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.60)
|
0.57 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.10
|
0.36 |
2.23 |
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Current Ratio (Current Asset/Current Liability) |
|
2.30
|
2.43 |
2.90 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
·
Janeja Packers Limited, Gurgaon
·
K S and Embroidery, Delhi
Form No. 8
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Name of the company |
INDIAN CROPICALS
PRIVATE LIMITED |
|
Presented By |
Vijaya Bank and Indian Cropicals Private
Limited |
|
1) Date and description of instrument creating the change |
·
Hypothecation
cum Loan Agreement dated 24.05.1997 (regd. on 21.09.1998) ·
Modified
upto Rs.5.000 millions on 23.04.2001 Regd. on 22.05.2001 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.000 million |
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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 of exportable
paid goods i.e. glass and Brass wares and leather goods stored at 309,
Meghdoot 94, Nehru Place, New Delhi or at any other place. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The above First
charge on stocks is to secure the PCL of Rs.1.000 million Interest at 13%
p.a. or at such other rates as may be revised by the bank from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
Vijaya Bank D-65, Hauz Khas, New Delhi – 110 016, India |
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6) Date and brief description of instrument modifying the charge |
DPN, Packing
Credit Agreement, FED11-86
Agreement for hypothecation of gods all dated 08.10.2004 |
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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. |
The Packing
Credit Limit secured by this charge is increased from Rs.5.000 millions to
Rs.7.500 millions. The charge is secured by hypothecation of handicraft items
etc. stored at D-10/6, Okhla Industrial Area Phase II, New Delhi or at any
other places. The charge is also secured by hypothecation of all movable
assets including furniture and fixtures of the company held from time to time.
Interest is chargeable at 7.5% Min. subject to change from time to time with
monthly rests. Other terms and conditions remain same. |
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Corporate
identity number of the company |
U74899DL1978PTC009117 |
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Name of the
company |
INDIAN CROPICALS PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
309, Meghdoot, 94 Nehru Place, New Delhi – 110 019, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
·
Book debts ·
Movable
property (not being pledge) ·
Floating
charge ·
Others o
Stocks of
Handicrafts Items Meant for Export |
|
Particular of
charge holder |
Vijaya Bank D-65, Hauz Khas, New Delhi – 110 016, India |
|
Nature of
instrument creating charge |
Supplementary
Agreement, Agreement to extended charge on movable property, PCL Agreement |
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Date of
instrument Creating the charge |
05.03.2008 |
|
Amount secured by
the charge |
Rs.10.000
millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
·
Rate of
interest Interest at 9.5% p.a. ·
Terms of
repayment Repayment as per bank norms ·
Margin 25% margin on paid stock ·
Extent and
operation of the charge 100% ·
Others First charge on stock of handicrafts items meant for export and
current and fixed assets of the company is to secure the Packing Credit Limit
of Rs.10.000 millions |
|
Particulars of
the property charged |
First charge on
stock of handicrafts items meant for export and current and fixed assets of
the company |
Working of the
Company
The export sales for the current year were Rs.44.784 millions as against
Rs.120.226 millions during the preceding accounting year. The results of the current
year show a cash loss of Rs.3.189 millions against the cash profit of Rs.6.629
millions in the preceding year. Depreciation has been provided at Rs.0.904
million (Preceding year Rs.1.004 million). Hence, the net operating results for
the current year show a net loss of Rs.4.093 as against the net profit of
Rs.5.625 millions in the preceding year. After making adjustments for the
balance profits brought forward from the preceding year of Rs.5.495 millions,
providing Fringe Benefit Tax for Rs.0.185 million, adjustment for Taxation
relating to earlier years of Rs.0.127 million, adjustment of Deferred Tax Asset
of Rs.1.234 millions, the net amount of surplus was Rs.2.324 millions which has
been carried forward in the Balance Sheet as at 31st March, 2007.
In the preceding accounting year ended March 2006, despite the company
accepting export orders at very low margins, due to severe competition, the
company was faced with a considerable loss of Rs.4.689 millions on account of
customers claims for defects / quality, most of which were raised on flimsy
grounds. Such customers were large organizations and if the company had
continued to make supplies to them on such basis, it could have been faced with
even higher claims in future. To avoid this possibility, the company was forced
to stop accepting orders on such basis.
Resultantly, the sales for the year under report were significantly
lower, though with a better margin and the customers claims were only Rs.0.108 million.
In view of the lower sales, the gross margin did not cover the fixed overheads
resulting in the loss for the year.
Future Prospects
During the current year, the company is making concerned efforts to
increase its export turnover. The company has also revived business with the
earlier export customers, but with a clear understanding that flimsy claims
will not be accepted. Since the revival of business is being done cautiously
and gradually, the export turnover for the current year will be better than the
preceding year but will not reach the levels of the year ended March 2006.
Contingent
Liabilities
·
In respect of Surety Bond executed in favour of the Sales Tax
Department, New Delhi, on behalf of a customer – Rs.0.100 million.
·
In respect of Surety Bond executed in favour of the Sales Tax
Department, New Delhi, on behalf of a company in which the Managing Director is
interested (through his relatives) – Rs.0.040 millions.
In the opinion of the Board of Directors, the Current Assets have a
value, on realization in the ordinary course of business, not less than the
amounts at which they are stated in the Balance Sheet and the provisions for
depreciation and for all known liabilities are adequate and not in excess of
amounts reasonably necessary.
Fixed Assets
·
Furniture and Fixture
·
Equipments
·
Electrical Fittings
·
Machinery
·
Vehicles
·
Computers
Web Details
Subject has a global presence and supplies products to most of the top Retail
Chain stores worldwide. They have a wide product range of Garden and home
improvement products, using combinations of glass, metal, leather, faux
leather, fabric, beads, embroidery, wood, etc. The design and versatility in
terms of the material mix, make them a key partner for business growth. The
turnover is about US$ 12 MILLION, and growing. They are looking to appoint
distributors for the products in Europe, America and Canada.
Company Overview
Based in New Delhi, they are an Indian supplier of Brassware, Handicraft
Products, Handicraft Supplies, Craft Products, Aluminium Handicraft Products,
Brass Handicraft Products.
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.49.69 |
|
UK Pound |
1 |
Rs.72.96 |
|
Euro |
1 |
Rs.63.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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 |
|