MIRA
INFORM REPORT
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Report Date : |
24.12.2008 |
IDENTIFICATION DETAILS
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Name : |
D D COTTON PRIVATE LIMITED |
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Registered Office : |
903, Tulsiani Chambers, 212, Backbay Reclamation, Nariman
Point, Mumbai – 400 021, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
30.08.1994 |
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Com. Reg. No.: |
11-156054 |
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CIN No.: [Company
Identification No.] |
U17120mh1994ptc156054 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
Mumd15333d |
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PAN No.: [Permanent
Account No.] |
Aaacd4819k |
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Legal Form : |
Private Limited Liability Company
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Line of Business : |
Manufacturer and Trader of Cotton |
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 1000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having sales of + Rs. 2000 millions, mainly trading of cotton. The company
is controlled, managed and financed by Seksharia
family who are resourceful, respectable and experienced businessmen. Their trade relations are reported as fair. Payments are reported as
slow but correct. The company can be considered normal for business dealings
at usual trade terms and conditions. |
INFORMATION PARTED BY
|
Name : |
Mr. Arun Sekhsaria
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Designation : |
Director |
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Date : |
23.12.2008 |
LOCATIONS
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Registered Office : |
903, Tulsiani Chambers, 212
Backbay Reclamation, Nariman
Point, Mumbai – 400021, |
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Tel. No.: |
91-22-22834307 / 66301129 |
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Mobile No.: |
91-9819700682 |
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Fax No.: |
91-22-22874260 |
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E-Mail : |
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Area : |
800 Sq.fts |
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Location : |
Owned |
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Factory : |
Located at Abohar, |
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Tel. No.: |
91-1634-225135 |
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Branches : |
Located at ·
Ahmedabad, ·
Shri Ganga Nagar, Bhatinda, |
DIRECTORS
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Name : |
Mr. Brijmohan Parmeshwalal
Sekhsaria |
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Designation : |
Director |
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Address : |
11/A, Bhaktawar Annexe, |
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Date of Birth/Age : |
10.01.1942 |
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Qualification : |
B. Com, LLB |
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Date of Appointment : |
30.08.1994 |
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Name : |
Mrs. Sulochanadevi Brijmohan
Sekhsaria |
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Designation : |
Director |
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Address : |
11/A, Bhaktawar Annexe, |
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Date of Birth/Age : |
24.10.1941 |
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Qualification : |
Under Graduate |
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Date of Appointment : |
30.08.1994 |
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Name : |
Mr. Arun Brijmohan
Sekhsaria |
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Designation : |
Director |
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Address : |
Sekhsaria House, 28, |
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Date of Birth/Age : |
17.11.1959 |
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Qualification : |
B. Com |
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Date of Appointment : |
30.08.1994 |
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Name : |
Mrs. Kalpanadevi Sekhsaria
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Designation : |
Director |
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Address : |
Sekhsaria House, 28, |
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Date of Birth/Age : |
20.04.1961 |
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Qualification : |
Masters in MBa |
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Date of Appointment : |
30.08.1994 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders (As on 17.09.2008) |
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No. of Shares |
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Mr. Brijmohan Parmeshwalal
Sekhsaria |
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4220 |
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Mrs. Sulochanadevi Brijmohan
Sekhsaria |
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2820 |
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Mr. Arun Brijmohan Sekhsaria |
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2620 |
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Mrs. Kalpanadevi Sekhsaria |
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4320 |
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Mr. Mayank A Sekhsaria
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4520 |
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Mr. Brijmohan P Sekhsaria
HUF |
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3350 |
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Mr. Arun Brijmohan
Sekhsaria HUF |
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1450 |
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Dwarkadas Trading Company private Limited |
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1500 |
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Brijmohan Sekhsaria and
Company |
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1000 |
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Total
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25800 |
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Names of Allotees (As on 16.09.2008) |
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No. of Shares |
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Mr. Brijmohan Parmeshwalal
Sekhsaria |
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3700 |
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Mrs. Sulochanadevi Brijmohan
Sekhsaria |
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2300 |
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Mr. Arun Brijmohan Sekhsaria |
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2000 |
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Mrs. Kalpanadevi Sekhsaria |
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4000 |
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Mr. Mayank A Sekhsaria
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4000 |
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Mr. Brijmohan P Sekhsaria
HUF |
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3000 |
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Mr. Arun Brijmohan
Sekhsaria HUF |
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1000 |
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Total |
20000 |
AS ON 17.09.2008
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Trader of Cotton |
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Exports : |
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Countries : |
South East Asian Countries |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
Cash |
GENERAL INFORMATION
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Customers : |
End Users |
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No. of Employees : |
75 (20 In Office and 55 in
Factory) |
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Bankers : |
·
Karnataka Bank Limited, Overseas Branch, 104-106,
Embassy Centre, Nariman Point, Mumbai – 400 021, ·
State Bank of · Icici Bank · Icfc limited |
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Facilities : |
For Karnataka Bank
Limited Total Limits - Rs. 320.000 millions
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shankarlal Jain and Associates (Mr. Satish Jain) Chartered Accountants |
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Address : |
12, |
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Associates/Subsidiaries : |
· Brij Mohan Sekhsaria and Company , Mumbai Activity:
Trading
of Cotton · Dwarkadas Trading Company Private Limited, Mumbai and Bhatinda Activity: Investments |
CAPITAL STRUCTURE
AS ON 17.09.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
7500 |
Equity Shares |
Rs. 1000/- Each |
Rs. 7.500
millions. |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
7500 |
Equity Shares |
Rs. 1000/- Each |
Rs. 7.500
millions. |
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Less: |
Reduction in share capital (1700 shares held
by Dwarkadas Cotton) |
|
Rs. 1.700 millions |
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Add : |
Shares to be issued on account of
Amalgamation |
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Rs. 20.000 millions |
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Total |
Rs. 25.800 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
5.800 |
7.500 |
7.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
179.269 |
38.782 |
37.064 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
185.069 |
46.282 |
44.564 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.002 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.003 |
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TOTAL BORROWING |
0.000 |
0.002 |
0.003 |
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DEFERRED TAX LIABILITIES |
0.022 |
0.213 |
0.263 |
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Shares
to be issued pursuant to Amalgamation |
20.000 |
0.000 |
0.000 |
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TOTAL |
205.091 |
46.497 |
44.830 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8.725 |
6.153 |
6.773 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
110.771 |
36.614 |
27.219 |
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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 |
5.392
|
0.926 |
3.310 |
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Sundry Debtors |
24.067
|
0.007 |
0.017 |
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Cash & Bank Balances |
67.005
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3.409 |
9.588 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
22.607
|
1.357 |
0.885 |
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Total
Current Assets |
119.071
|
5.699 |
13.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
32.084
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1.969 |
2.400 |
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Provisions |
1.392
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0.000 |
0.562 |
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Total
Current Liabilities |
33.476
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1.969 |
2.962 |
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Net Current Assets |
85.595
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3.730 |
10.838 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
205.091 |
46.497 |
44.830 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
NA |
NA |
NA |
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Profit/(Loss) Before Tax |
80.734 |
5.933 |
8.740 |
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Provision for Taxation |
0.000 |
0.000 |
0.783 |
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Profit/(Loss) After Tax |
80.734 |
5.933 |
7.957 |
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Total Expenditure |
NA |
NA |
NA |
KEY RATIOS
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PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
33.84
|
12.24 |
0.18 |
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Return on Investment (ROI) (PBT/Networth) |
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0.44
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0.13 |
0.20 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.18
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0.04 |
0.07 |
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Current Ratio (Current Asset/Current Liability) |
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3.56
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2.89 |
4.66 |
LOCAL AGENCY FURTHER INFORMATION
Note:
Till now subject has done business of Rs.
500.000 millions.
Form 8:
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Corporate
identity number of the company |
U17120mh1994ptc156054 |
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Name of the
company |
D D COTTON PRIVATE LIMITED |
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Address of the registered
office or of the principal place of
business in |
903, Tulsiani
Chambers, 212 Backbay Reclamation, Nariman Point, Mumbai – 400021 |
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This form is for |
Creation of
charge |
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Type of charge |
· Immovable property |
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Particular of
charge holder |
Karnataka Bank
Limited, Overseas Branch, 104-106, Embassy Centre, Nariman
Point, Mumbai – 400 021, E-Mail ID: bom.overseas@ktkbank.com |
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Nature of
instrument creating charge |
No instrument was
executed. Charge created by giving oral assent. |
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Date of
instrument Creating the charge |
09.08.2008 |
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Amount secured by
the charge |
Rs. 325.000 millions |
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Short particulars
of the property charged (Including location of the property) |
Immovable
properties of the company viz. land Admeasuring 2 Kanal
18 Marlas, 11 Kanal 12 Marlas, 7 Kanal 15 Marlas, 2 Kanal 04 Marlas, 1 Kanal 17 Marlas all situated at Village Burj
Muhar, Tehsil Abohar, |
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Name of the company |
D D COTTON
PRIVATE LIMITED |
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Presented By |
Mr. B P Sekhsaria |
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1) Date and description of instrument creating the change |
Agreement for credit Facilities Hypothecation of
debts and assets dated 11.07.1995 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 10.000 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 of
land, building, plant and machinery, tools, spares parts lying at the factory
premises. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
As per copy of
term and conditions and as per agreement already enclosed at the time of
registration of charge. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of |
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6) Date and brief description of instrument modifying the charge |
Sanction letter
03.02.2004 Limit Reduction
letter recital for equitable mortgage |
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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. |
1st
Charge and Limit reduced to
7.500 millions 1st charge on land building, machinder
all terms and conditions at the time of registration of charge. |
TRADE references:-
· Satyanarayan Sekhsaria and Company
· Khimji Vishram and Sons
· Gill and Company
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for
violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.49 |
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|
1 |
Rs.71.89 |
|
Euro |
1 |
Rs.67.86 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
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 |
YES |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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. |
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 |
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