MIRA
INFORM REPORT
|
Report Date : |
21.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ASSOCIATED APPLIANCES LIMITED |
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Registered Office : |
A-223, New Friends Colony, New Delhi – 110064 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.04.1994 |
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Com. Reg. No.: |
058528 |
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CIN No.: [Company
Identification No.] |
L74899DL1994PLC058528 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELA12525C |
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PAN No.: [Permanent
Account No.] |
AACCA6280B |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer, Exporter and Importer of All kinds of Electric appliances,
Engineering appliances, Consumer durable items, Description and other Home
appliances. |
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 61672 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having
satisfactory track. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
A-223, New Friends Colony, New Delhi – 110064, India |
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E-Mail : |
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Factory : |
CLU Plot No.1, Sector – 56 A, (Opp. Plot No.25), Faridabad – 121004,
Haryana, India |
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Tel. No.: |
91-129-4103945/46 |
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Fax No.: |
91-129-4103944 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Madan Lal Sharma |
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Designation : |
Director |
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Name : |
Mr. Dev Dutt Sharma |
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Designation : |
Director |
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Address : |
1310, Sector No.14, Faridabad – 121007, Haryana |
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Date of Birth/Age : |
10.10.1955 |
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Date of Appointment : |
21.04.1994 |
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Name : |
Mrs. Praveen Shrma |
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Designation : |
Whole Time Director |
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Address : |
1310, Sector No.14, Faridabad – 121007, Haryana |
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Date of Birth/Age : |
25.06.1957 |
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Date of Appointment : |
13.02.1998 |
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Name : |
Mr. Neeru Shrama |
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Designation : |
Director |
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Name : |
Mrs. Deepika Sharma |
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Designation : |
Director |
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Address : |
1310, Sector No.14, Faridabad – 121007, Haryana |
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Date of Birth/Age : |
06.11.1984 |
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Date of Appointment : |
01.11.2007 |
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Name : |
Mr. Rahul Choudhry |
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Designation : |
Director |
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Name : |
Mr. Udham Singh Sharma |
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Designation : |
Whole Time Director |
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Address : |
2035, Hig Flat, Sector No. 3, Ballabhgarh, Faridabad – 121004, Haryana |
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Date of Birth/Age : |
05.01.1952 |
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Date of Appointment : |
26.09.2003 |
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Name : |
Mrs. Rajwanti Sharma |
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Designation : |
Director |
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Address : |
2035, Hig Flat, Sector No. 3, Ballabhgarh, Faridabad – 121004, Haryana |
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Date of Birth/Age : |
08.12.1953 |
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Date of Appointment : |
26.09.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Dev Dutt Sharma |
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65840 |
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Mr. Udham Singh Sharma |
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25750 |
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Mrs. Rajwanti Sharma |
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3000 |
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Ms. Deepika Sharma |
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20 |
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Mrs. Praveen Shrma |
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30380 |
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Ms. Archana Sharma |
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7 |
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Mr. Surender Kumar |
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1 |
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Sweet Home Appliances |
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1 |
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Maruti Engineer Industries |
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1 |
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Total |
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125000 |
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Category |
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Percantage |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of All kinds of Electric
appliances, Engineering appliances, Consumer durable items, Description and
other Home appliances. |
GENERAL
INFORMATION
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Bankers : |
·
Oriental Bank
of Commerce Sector – 16,
Daultabad, Faridabad – 121002, Haryana, India ·
Punjab
National Bank Railway Old
Faridabad |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A K G and Company Chartered Accountants |
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Address : |
Kailash Colony, New Delhi – 110048, Delhi, India |
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Name : |
K Goel and Associates Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity shares |
Rs.10/- each |
Rs.20.000 Millions |
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Issued, Subscribed & Paid-up 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 |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
10.000 |
3.750 |
1.250 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5.418 |
6.786 |
2.118 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
15.418 |
10.536 |
3.368 |
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LOAN FUNDS |
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1] Secured Loans |
24.370 |
14.746 |
27.149 |
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2] Unsecured Loans |
5.319 |
5.741 |
3.327 |
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TOTAL BORROWING |
29.689 |
20.487 |
30.476 |
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DEFERRED TAX LIABILITIES |
0.137 |
0.055 |
0.000 |
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TOTAL |
45.244 |
31.078 |
33.844 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
9.829 |
5.101 |
2.361 |
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Capital work-in-progress |
0.000 |
0.000 |
0.169 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
(0.341) |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
54.874
|
38.900 |
28.736 |
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Sundry Debtors |
18.744
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11.385 |
26.808 |
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Cash & Bank Balances |
2.165
|
1.830 |
4.618 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
11.351
|
6.252 |
3.666 |
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Total
Current Assets |
87.134
|
58.367 |
63.828 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
50.868
|
31.954 |
32.176 |
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Provisions |
0.997
|
0.618 |
0.000 |
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Total
Current Liabilities |
51.865
|
32.572 |
32.176 |
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Net Current Assets |
35.269
|
25.795 |
31.652 |
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MISCELLANEOUS EXPENSES |
0.146 |
0.182 |
0.003 |
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TOTAL |
45.244 |
31.078 |
33.844 |
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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 |
190.983 |
96.226 |
73.062 |
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Other Income |
0.020 |
0.050 |
0.020 |
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Total Income |
191.003 |
96.276 |
73.082 |
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Profit/(Loss) Before Tax |
6.041 |
5.001 |
1.050 |
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Provision for Taxation |
1.158 |
0.333 |
0.216 |
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Profit/(Loss) After Tax |
4.883 |
4.668 |
0.834 |
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Export Value |
N.A. |
N.A. |
N.A. |
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Import Value |
N.A. |
N.A. |
0.252 |
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Expenditures : |
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Raw Material Consumed |
131.314 |
67.126 |
49.301 |
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Consumption of stores and spares parts |
0.171 |
1.358 |
9.886 |
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Salaries, Wages, Bonus, etc. |
8.683 |
2.682 |
2.788 |
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Managerial Remuneration |
0.600 |
0.420 |
3.737 |
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Payment to Auditors |
0.116 |
0.104 |
3.459 |
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Interest |
5.358 |
3.569 |
2.385 |
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Insurance Expenses |
0.222 |
0.116 |
0.472 |
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Power & Fuel |
0.282 |
0.291 |
0.000 |
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Depreciation & Amortization |
1.633 |
0.847 |
0.000 |
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Other Expenditure |
36.583 |
14.761 |
0.004 |
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Total Expenditure |
184.962 |
91.275 |
72.032 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
2.56
|
4.85 |
1.14 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.16
|
5.20 |
1.44 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.23
|
7.88 |
1.59 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.47 |
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
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5.29
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5.02 |
18.60 |
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Current Ratio (Current Asset/Current Liability) |
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1.68
|
1.79 |
1.98 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 :
|
Corporate identity
number (CIN) Foreign company registration number |
L74899DL1994PLC058528 |
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Name of the
Company |
ASSOCIATED APPLIANCES LIMITED |
|
Address |
A-223, New Friends Colony, New Delhi – 110064, Delhi, India |
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This form is for |
Modification of charge |
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Type of Charge |
Book Debts Movable Property
(Not being Pledge) |
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Particulars of
the charge holder |
Oriental Bank of
Commerce Sector – 16,
Daultabad, Faridabad – 121002, Haryana, India |
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Nature or
description of the instrument(s) creating or modifying the charge |
Supplemental
Agreement to secure credit/ loan facilities Dated 11.04.2007 |
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Date of the
instrument creating or modifying the charge |
11.04.2007 |
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Amount secured by
the charge |
Rs.30.000
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest
: Rate of Interest
@1% below PLR with a minimum of @11.50% p.a. with monthly rests subject to
change from time to time as per RBI Guidelines/ HO Circulars Panel Rate of
Interest @2% p.a. over and above the normal rate of interest Terms of
repayment : On demand Margin : Margin Stock –
25%, receivables – 40% Extent and
operation of the charge : First Charge |
|
Short particulars
of the property charged (including location of the property) |
Hypothecation of
stock of Raw Materials (HR and SS/CR Sheets), Finished and semi finished goods of Gas stoves,
Chimneys and other home/ kitchen appliance present and future receivables of
the company documents of title to goods under letter of credit and
hypothecation of goods under L/C in case of DA basis as well as all current
assets of the company. |
|
Particular of the
present modification |
Limit of Amount
Secured enhanced from Rs.22.000 Millions to Rs.30.000 Millions Rate of Interest
@1% below PLR with a minimum of @11.50% p.a. with monthly rests subject to
change from time to time as per RBI Guidelines HO Circulars Penal Rate of
Interest @2% p.a. over and above the normal rate of interest. |
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Name of the company |
ASSOCIATED APPLIANCES LIMITED |
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Presented By |
Mr. D. D. Sharma |
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1) Date and description of instrument creating the change |
Agreement Re :
Advance against Cash Credit Agreement dated 05.02.2004 Registered of
27.02.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.2.500 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 |
The loan is
secured against all types of Raw Materials, stocks process semi finished goods and
finished goods S. S. Sheets Chemicals Packaging and Book debts |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Limit –
12.25% p.a. Margin Stocks –
25% Book Debts - 40% |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National
Bank Railway Old
Faridabad |
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6) Date and brief description of instrument modifying the charge |
Free Agreement
Dated 22.02.2005 Agreement Hypothecation of Goods Book debts to secure. |
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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 Cash Credit
Limit Stands enhance from Rs.2.500 Millions to Rs.5.000 Millions Interest
Shall be charged @12.25% Margin Stocks 25%, Book debts 40% |
Fixed Assets :
·
Plant and Machinery
·
Assembly Table
·
Air conditioner
·
Electric Installation
·
Inverter
·
Material Handling Trclly
·
Lab. Equipment
·
Fan and Fitting
·
Typewriter
·
Fax Machine
·
Telephone Mobile Instrument
·
Label and Packaging Machine
·
Security Equipment
·
Refrigerator
·
Fire Extinguisher
·
Fixture and Fitting
·
Furniture and Fittings
·
Cycle
·
Scooter
·
Car
·
Computer and Printer
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.39.27 |
|
UK Pound |
1 |
Rs.77.33 |
|
Euro |
1 |
Rs.57.51 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--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 |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|