MIRA
INFORM REPORT
|
Report Date : |
03.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RENAISSANCE CORPORATION LIMITED |
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Formerly Known As : |
DIVINE POLYMER PRODUCTS LIMITED |
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Registered Office : |
308, Adhyaru Industrial Estate, Sun Mill Compound, Lower Parel, Mumbai
– 400013, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.01.2005 |
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Com. Reg. No.: |
11-150612 |
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CIN No.: [Company
Identification No.] |
U24130MH2005PLC150612 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD12965B |
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PAN No.: [Permanent
Account No.] |
AACCD0975A |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacture and Exporter of Pet Products. |
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 2704972 |
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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 2 years old company and is reported to be doing good
business. The company had incurred some initial losses during the first full
year of its operations. Payments are reported as slow but correct. The company considered for small business dealings initially at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
308, Adhyaru Industrial Estate, Sun Mill Compound, Lower Parel, Mumbai
– 400013, Maharashtra, India |
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Tel. No.: |
91-22-28206925 |
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Fax No.: |
91-22-28206927 |
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E-Mail : |
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Website : |
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Head Office : |
17-A, 1st Floor, Andheri - Kurla Road, Chakala,
Andheri (East), Mumbai - 400 093 |
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Tel. No.: |
91-22-26830301/ 0302 / 26848036/ 9897 |
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Fax No.: |
91-22–26830300 |
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E-Mail : |
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Factory : |
Village Bhimasar, Anjar Road, Taluka Anjar Dist. Kutch - 370 201
Gujarat, India |
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Tel. No.: |
91-2836-285366/ 67/ 394892 |
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E-Mail : |
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Branches : |
Located At : Mumbai, Delhi, Indore, Pune, Vadodara |
DIRECTORS
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Name : |
Mr. Sandeep Suresekumar Khandelwal |
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Designation : |
Director |
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Address : |
201, Abhay Nutan laxmi Co-operative Housing Society Road No. 9, JVPD Juhu,
Vile Parle West, Mumbai – 400049, Maharashtra, India |
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Date of Birth/Age : |
14.07.1967 |
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Date of Appointment : |
13.01.2005 |
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Name : |
Mr. Naresh D. Kaushik |
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Designation : |
Director |
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Address : |
B – 206, Natraj Complex, Near RVP Park, Bhayander [East], Thane –
401105, Maharashtra, India |
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Date of Birth/Age : |
05.09.1967 |
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Date of Appointment : |
13.01.2005 |
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Name : |
Mr. Giorgio Mattiello |
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Designation : |
Director |
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Address : |
VPO Ederi 2, 28066, Galliate, Province Novara, Province Novara - 28100, Italy |
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Date of Birth/Age : |
27.05.1947 |
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Date of Appointment : |
01.04.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Sandeep Suresekumar Khandelwal |
|
5000 |
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Mr. Naresh D. Kaushik |
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5000 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
11.04 |
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Bodies corporate |
|
82.50 |
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Directors or relatives of directors |
|
6.46 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and Exporter of Pet Products. |
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Import From : |
Europe and USA |
GENERAL
INFORMATION
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Bankers : |
State Bank of Indore Address: Navlakha Branch, Indore – 452 001, Madhya Pradesh, India Email ID: sbn3109@sbindore.co.in
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Banking
Relations : |
-- |
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Auditors : |
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Name 1 : |
Shah and Taparia Chartered Accountants |
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Address : |
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Tel. No.: |
91-22-56319266 / 67 / 68 |
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Mobile No.: |
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Name 2 : |
Mr. Murarilal Agrawal Chartered Accountants |
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Address : |
116, Chandrika, ‘A’ Vikas Housing Complex, Near Tulinj Water Tank,
Nallasopara (East), District Thane – 401 209, Maharashtra, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/-each |
Rs.200.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6597550 |
Equity Shares |
Rs. 10/-each |
Rs.65.975
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 |
65.975 |
17.737 |
0.100 |
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2] Share Application Money |
79.400 |
98.504 |
0.000 |
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3] Reserves & Surplus |
588.379 |
154.233 |
0.000 |
|
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4] (Accumulated Losses) |
[57.511] |
[16.850] |
[0.003] |
|
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NETWORTH |
676.243 |
253.624 |
0.097 |
|
|
LOAN FUNDS |
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|
|
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1] Secured Loans |
1301.898 |
193.248 |
0.000 |
|
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2] Unsecured Loans |
0.000 |
5.000 |
0.000 |
|
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TOTAL BORROWING |
1301.898 |
198.248 |
|
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DEFERRED TAX LIABILITIES |
31.055 |
13.953 |
0.000 |
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TOTAL |
2009.196 |
465.825 |
0.097 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
476.859 |
316.728 |
0.000 |
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Capital work-in-progress |
1264.969 |
96.526 |
0.000 |
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INVESTMENT |
0.267 |
1.713 |
0.000 |
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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 |
45.110
|
7.057 |
0.000 |
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Sundry Debtors |
37.435
|
0.729 |
0.000 |
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Cash & Bank Balances |
132.296
|
19.863 |
0.034 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
97.446
|
31.913 |
0.036 |
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Total
Current Assets |
312.287
|
59.562 |
0.070 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
77.542
|
16.860 |
0.003 |
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Provisions |
0.657
|
0.107 |
0.000 |
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Total
Current Liabilities |
78.199
|
16.967 |
0.003 |
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Net Current Assets |
234.088
|
42.595 |
0.067 |
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MISCELLANEOUS EXPENSES |
33.013 |
8.263 |
0.030 |
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TOTAL |
2009.196 |
465.825 |
0.097 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
|
362.977 |
1.057 |
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Other Income |
|
4.153 |
1.363 |
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Total Income |
|
367.130 |
2.420 |
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Profit/(Loss) Before Tax |
|
[22.901] |
[2.789] |
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Provision for Taxation |
|
17.759 |
14.060 |
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Profit/(Loss) After Tax |
|
[40.660] |
[16.849] |
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Expenditures : |
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Raw Material Consumed |
|
352.469 |
2.623 |
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Consumption of stores and spares parts |
|
4.689 |
0.598 |
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Increase/(Decrease) in Finished Goods |
|
[5.726] |
[2.396] |
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Salaries, Wages, Bonus, etc. |
|
1.181 |
0.057 |
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Payment to Auditors |
|
0.015 |
0.050 |
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Interest |
|
8.637 |
0.003 |
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Insurance Expenses |
|
1.198 |
0.000 |
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Power & Fuel |
|
0.807 |
0.310 |
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Depreciation & Amortization |
|
16.538 |
3.481 |
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Other Expenditure |
|
10.221 |
0.481 |
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Total Expenditure |
|
390.029 |
5.207 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
[11.07] |
[696.23] |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
[6.30] |
[263.85] |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[1.11] |
[0.58] |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
[0.03] |
[0.01] |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.04 |
0.85 |
0.03 |
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Current Ratio (Current Asset/Current Liability) |
|
3.99 |
3.51 |
23.33 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Corporation identity number or foreign company registrations number of
the company |
U24130MH2005PLC150612 |
|
Name of the company |
DIVINE POLYMER PRODUCTS LIMITED |
|
Address |
308, Adhyaru Industrial Estate, Sun Mill
Compound, Lower Parel, Mumbai – 400013, Maharashtra |
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This Form is for |
Modification of charge |
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Type of Charges |
Others |
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Particular of the charge holder
|
State Bank of Indore Address: Navlakha Branch, Indore, - 452 001, Madhya Pradesh, India Email ID: sbn3109@sbnindore.co.in |
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Nature or description of the instrument creating charge |
· Agreement of hypothecation of goods and assets · Deed of Guarantee for Overall Limit · Sanction Letter for Credit facilities · Letter regarding the grant of individuals limits within overall limit. |
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Date of the instrument creating charge |
02.06.2007 |
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Amount Secure by the charge |
Rs. 209.700 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest: Rate of interest 1.75% below our BPLRIE at present 11.50% p.a. Period
of loan 6 year including moratorium of 18 months from the date of
disbursement. Terms of repayment: Additional one time Bank guarantee under EPCs Scheme. Margin: The fresh additional bank guarantee limit of Rs. 48.5 00 millions
@10%% and 25% in cash / TDR duly lien noted / discharged. Extent and operation of the
charge: Bank sanctioned fresh additional Bank guarantee limit of Rs. 48.500
millions under EPCG Scheme to be issued in favour of Customs Department for
clearance of capital Goods at confessional duty. Guarantee – Personally guarantee of Mr. Sandeep Khandelwal S/o Suresh
Chandra Khandelwal Corporate guarantee M/s
Akansha Growth Fund Private Limited Thus, the charge now stand secured at Rs. 209.700 millions. |
|
Short particulars of the Property charged |
Extension of first pari passu charge over the entire project assets of
the company post project implementation present and future Counter guarantee of the company Collateral i) Extension of Second paripassu charge of the entire
current assets of the company present and future ii) Industrial shed of area admeasuring 70607 sq.fts situated at Plot
No. 42-43 Sector – A, Industrial Area, Sanwer Road, Indore owned by M/s
Akansha Growth Fund Private Limited, Indore. |
|
Particular of the present modification |
Bank sanctioned fresh additional Bank guarantee limit of Rs. 48.500
millions under EPCG Scheme to be issued in favour of Customs Department for
clearance of capital Goods at confessional duty. Thus, the charge now stand secured at Rs. 209.700 millions. |
OTHER INFORMATION:
About Company
Subject is setting up project to process Polyethylene Terephthalate with
a capacity of 100000 MT p.a. The Project is being set up at village Bhimasar,
Taluka Anjar, Kutch – Gujarat and will be deploy latest technology. All major
machines are being imported from Europe / USA and will produce quality products
to cater to Domestic and Export markets.
About Marketing /
Exclusive Tie – Ups
The Company has signed MoU with the reputed MNC – M/s
Recycle Bank Limited, U.K. for supply of raw material – 40% from Europe, U.S.A.
and Middle East and Buy Back of Finished Products – 60%
Beside above,
Recycle Bank Limited, U.K. is to provide assistance for appropriate Technology
for Manufacturing and source of Machinery.
In addition to
above arrangement the company has received firm orders from Colombo, Sri Lanka,
UAE and UK aggregating to 1200 MT per month
An agreement has
been signed with M/s Recycling Bank limited, UK. As per the agreement M/s
Recycling Bank Limited has agreed to ensure timely and regular supply of PET
bottle in bale form to CIF Kandla basis on Letter of Credit/CAD terms sourced
from Europe/USA/Middle East at most competitive rates. As a buy back agreement
Recycling Bank will purchase finished products from Divine Polymer against
Letter of Credit at the prevailing market rate. M/s Recycling Bank Limited has
also agreed to provide assistance to identify appropriate technology and source
capital equipments from European suppliers.
Subject has also entered into an exclusive agreement with m/s Recyclers Inc.
and Company Limited Hong Kong.
As per this agreement Recyclers Inc. has
agreed with Divine Polymer to ensure timely and regular supply of PET bottle in
bale form on CIF Kandla basis on L/C or CAD terms, sourced from
Europe/USA/Middle East at most competitive rates. As a buy-back agreement
Recyclers Inc. will purchase finished products from DPP Limited against Letters
of Credit at the prevailing market rate.
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.39.38 |
|
UK Pound |
1 |
Rs.77.48 |
|
Euro |
1 |
Rs.58.38 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
41 |
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 |
|