MIRA
INFORM REPORT
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Report Date : |
08.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
CREATIVE INTERNATIONAL PRIVATE LIMITED |
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Registered Office : |
No. 36 and 37, Krishna Nagar, Industrial Area, Hosur Main Road,
Bangalore 560029, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.12.1998 |
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Com. Reg. No.: |
08-24535 |
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CIN No.: [Company
Identification No.] |
U18101KA1998PTC024535 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRC01458C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Garments |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 65000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old company having moderate track. Company’s profitability is under severe
pressure. It has huge accumulated
losses. Payments are reported as slow
and delayed. The Company can be considered for any business dealings on safe and secured trade terms and conditions, only. |
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LOCATIONS
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Registered Office : |
No. 36 and 37, Krishna Nagar, Industrial Area, Hosur Main Road,
Bangalore 560029, Karnataka, India |
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Tel. No.: |
91-80-25536397 |
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Fax No.: |
91-80-25536997 |
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E-Mail : |
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Factory : |
79, Industrial Suburb, 2nd Stafe, 40th Main
Road, Yeshwanthpur, Bangalore 560029, Karnataka, India |
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Tel. No.: |
91-80-51379000 |
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Fax No.: |
91-80-23373758 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Surendra Kumar Agarwal |
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Designation : |
Managing Director |
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Address : |
252, Defence Colony, Hal-2nd Stage, Indira Nagar, Bangalore
560008, Karnataka, India |
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Date of Birth/Age : |
22.08.1952 |
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Date of Appointment : |
16.12.1998 |
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Name : |
Mrs. Sheetal Agarwal |
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Designation : |
Director |
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Address : |
252, Defence Colony, Hal-2nd Stage, Indira Nagar, Bangalore
560008, Karnataka, India |
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Date of Birth/Age : |
04.03.1979 |
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Date of Appointment : |
16.12.1998 |
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Name : |
Mr. Surendra Bhauwala |
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Designation : |
Director |
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Address : |
13, Main MC Layout, Vijaya Nagar, Bangalore 560040, Karnataka, India |
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Date of Birth/Age : |
20.01.1956 |
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Date of Appointment : |
01.03.2000 |
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Name : |
Mr. Shailesh Kedia |
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Designation : |
Director |
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Address : |
23, 4th cross, K. R. Garden, Murgesh Palya, Bangalore
560017, Karnataka, India |
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Date of Birth/Age : |
17.09.1961 |
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Date of Appointment : |
01.03.2000 |
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Name : |
Mr. Abhishek Agarwal |
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Designation : |
Director |
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Address : |
252, Defence Colony, Hal-2nd Stage, Indira Nagar, Bangalore
560008, Karnataka, India |
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Date of Birth/Age : |
02.04.1982 |
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Date of Appointment : |
28.09.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Surendra Kumar Agarwal |
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690000 |
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Abhishek K. Agarwal |
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160000 |
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Total |
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850000 |
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Equity Share
Break-up |
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Percentage of
Holding |
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Directors or relatives of the Directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Garments |
GENERAL
INFORMATION
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Bankers : |
Ř
Bank of
Maharashtra City Market Branch, No.
13, Paxal Towers, K. R. Road, Bangalore
560002, Karnataka, India Ř
Indian Bank Ř
Indian
Overseas Bank Ř
State Bank
of India Ř
Andhra Bank Ř
Punjab
National Bank Ř
ABN Amro Bank Ř
State Bank
of Mysore Ř The Bank of Novascotia |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Dokania and Company Chartered Accountants |
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Address : |
303, Kalpak Arcade, 19th Church Street, Bangalore 560001,
Karnataka, India |
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Associates/Subsidiaries : |
Ř Creative
Garments Ř Creative Dresses
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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850000 |
Equity Shares |
Rs. 10/-
each |
Rs. 8.500
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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8.500 |
8.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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[24.845] |
[21.618] |
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NETWORTH |
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[16.345] |
[13.118] |
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LOAN FUNDS |
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1] Secured Loans |
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7.821 |
37.363 |
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2] Unsecured Loans |
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86.794 |
86.794 |
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TOTAL BORROWING |
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94.615 |
124.157 |
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DEFERRED TAX LIABILITIES |
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2.199 |
2.539 |
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TOTAL |
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80.469 |
113.578 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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49.184 |
53.602 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.005 |
0.005 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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23.843 |
30.819 |
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Sundry Debtors |
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19.991 |
31.747 |
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Cash & Bank Balances |
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1.783 |
1.648 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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7.006 |
4.806 |
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Total
Current Assets |
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52.623 |
69.020 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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21.343 |
9.049 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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21.343 |
9.049 |
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Net Current Assets |
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31.280 |
59.971 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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80.469 |
113.578 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
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Sales Turnover |
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134.850 |
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Other Income |
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9.779 |
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Total Income |
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144.629 |
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Profit/(Loss) Before Tax |
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[3.226] |
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Provision for Taxation |
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-- |
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Profit/(Loss) After Tax |
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[3.226] |
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Earnings in Foreign Currency : |
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144.629 |
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Total Imports |
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6.579 |
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Expenditures : |
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Increase/(Decrease) in Finished Goods |
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6.976 |
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Other Expenditure |
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140.879 |
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Total Expenditure |
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147.855 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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[2.23] |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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[2.39] |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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[3.17] |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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[0.19] |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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7.09 |
10.15 |
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Current Ratio (Current Asset/Current Liability) |
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2.46 |
7.62 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
Bankers Charges
Report as per Registry
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This Form is for |
Modification of charge |
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Charge
identification number of the charge to be modified |
80037984 |
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Corporate
identity number of the company |
U18101KA1998PTC024535 |
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Name of the company
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CREATIVE
INTERNATIONAL PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
No. 36 and 37, Krishna Nagar Industrial Area, Bangalore 560029,
Karnataka, India |
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Type of charge |
Book Debts Movable Property |
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Particular of
charge holder |
Bank of
Maharashtra City Market
Branch, No. 13, Paxal Towers, K. R. Road, Bangalore 560002, Karnataka, India |
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Nature of
description of the instrument creating or modifying the charge |
Composite Deed of
hypothecation for all facilities |
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Date of
instrument Creating the charge |
14.09.2007 |
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Amount secured by
the charge |
Rs. 27.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
[a] Rate of
interest Interest PC : 9%
[180 days], 11.50% [180 days to 270 days], BPLR + 4% beyond 270 days Post
Shipment Credit 9% [90 days], 11.50% [90 days to 180 days] Letter of credit
Commission 0.75% upto 90 days, Commission 1.00% over 90 days DA BG Commission
1% pa [b] Terms of
repayment Repayable on
demand [c] Margin Margin PC 10% Post shipment
Credit Nil LC 10% [d] Extent and
operation of the charge Hypothecation of
Export Merchandise, Documents, Export Bills, Goods and all plant and machineries,
furniture, fixtures, office machineries etc. belonging to the company to the
extent of Rs. 27.000 Millions |
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Short particulars
of the property charged |
Hypothecation of
present and future goods, stocks of raw materials, items inventories, stocks
in process, semi finished and finished goods, stores, spares, stocks in
trade, GIP, movables in transit, book debts, bills receivables belonging to
the company. Hypothecation of all
movable plant and machineries, furniture and fixtures office equipments,
machinery and all other movable assets of the company at No. 36 & 37, Krishna Nagar
Industrial Area, Bangalore 560029, Karnataka, India or wherever else
belonging to the company. |
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Date of latest
modification prior to the present modification |
NA |
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Particulars of
the present modification |
Total limits
enhanced reduced from Rs. 47.500 Millions to Rs. 27.000 Millions [PC and Post
shipment Credit Rs. 25.000 Millions and LC/BG Rs. 2.000 Millions all other terms and
conditions inclusive of all existing securities to continue for the entire
limits. |
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Name of the company |
CREATIVE
INTERNATIONAL PRIVATE LIMITED |
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Presented By |
Mr. Surendra
Agarwal |
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1) Date and description of instrument creating the change |
02.01.2003. Composite Deed of
hypothecation, packing credit, cash credit, post shipment, Import, LC and
Bank Guarantee all dated individually 02.01.2003 |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Cash Credit Packing
Credit Rs. 4.000 Millions FOBN/FOBP Rs.
8.500 Millions Import L/C Rs. 23.500 Millions Bank Guarantee
Rs. 11.500 Millions
-------------------------------- Total Rs. 47.500 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
cotton fabrics, accessories, WIP, Finished Garments etc. Hypothecation of
Book Debts collateral security of Company’s plant and machinery As per enclosed
to the composite deed of hypothecation
located at the No. 36 and 37, Krishna Nagar Industrial Area,
Bangalore 560029, Karnataka, India |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Repayment on
Demand Margin 25% Interest/Commission Cash Credit PLR +
1% p.a. Packing Credit –
8.5% p.a. FOBN/FOBP - 8.5% p.a. Import L/C – 1% Bank Guarantee –
3% p.a. |
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5) Name and Address and description of the person entitled to the
charge. |
Bank of
Maharashtra City Market
Branch, Bangalore 560002, Karnataka, India |
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6) Date and brief description of
instrument modifying the charge |
NA |
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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. |
NA |
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 |
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US Dollar |
1 |
Rs. 39.55 |
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UK Pound |
1 |
Rs. 76.85 |
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Euro |
1 |
Rs. 57.27 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
2 |
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OPERATING SCALE |
1~10 |
-- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
2 |
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--LEVERAGE |
1~10 |
2 |
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--RESERVES |
1~10 |
- |
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--CREDIT LINES |
1~10 |
- |
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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 |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
NO |
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TOTAL |
|
13 |
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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
|