MIRA INFORM REPORT

 

 

Report Date :

29.01.2008

 

IDENTIFICATION DETAILS

 

Name :

SARA TEXTILES LIMITED

 

 

Registered Office :

A-31, Sara House, Aauz –Khas, New Delhi – 110 016

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

26.12.2003

 

 

Com. Reg. No.:

123708

 

 

CIN No.:

[Company Identification No.]

U18101DL2003PLC123708

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELS21005F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers of Towels, Bathrobe, Beach Towels etc.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 879932

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track records. Company’s profitability is under severe pressure. It has huge accumulated losses. Payments are however reported as slow but correct.

 

The company can be considered for small to mediocre business dealings with slight caution initially.

 

 

LOCATIONS

 

Registered Office :

A-31, Sara House, Aauz –Khas, New Delhi – 110 016

Tel. No.:

91-11-26851340 /26517138 / 26517241

Fax No.:

91-11-26851340 / 26517127

E-Mail :

ravigupta@sara-intl.com / info@saratextiles.com

Website :

www.saratextiles.com

 

 

DIRECTORS

 

Name :

Mr. Deepit Singh

Designation :

Director

Address :

S-99, Panchsheel Park, New Delhi – 110017

Date of Birth/Age :

13.10.1978

Date of Appointment :

26.12.2003

 

 

Name :

Mr. Devinder Pal Singh

Designation :

Director

Address :

S-99, Panchsheel Park, New Delhi – 110017

Date of Birth/Age :

07.12.1952

Date of Appointment :

26.12.2003

 

 

Name :

Mr. Shyam Mohan Dwivedi

Designation :

Whole Time Director

Address :

E – 205, Lajpat Nagar – I, New Delhi

Date of Birth/Age :

04.02.1966

Date of Appointment :

26.12.2003

 

 

Name :

Mr. Surender Lal Kapoor

Designation :

Director

Address :

161-A, Western Avenue, Sainik Farms, New Delhi

Date of Birth/Age :

07.03.1937

Date of Appointment :

02.02.2005

 

 

Name :

Mr. Satnam Arora

Designation :

Director

Address :

Farm House, 248, Saidulajaib Village, Western Marg, Opp. CISF Camp, New Delhi

Date of Birth/Age :

23.01.1949

Date of Appointment :

02.02.2005

 

 

Name :

Mr. Ram Anuj Mishra

Designation :

Director

Address :

82/6 B, Gandhi Gram, Harjender NAgar, Kanpur

Date of Birth/Age :

15.03.1946

Date of Appointment :

02.02.2005

 

 

KEY EXECUTIVES

 

Name :

Mr.G. P. Gupta

Designation :

Secretary

Address :

C-5/91, Yamuna Vihar, Delhi- 110053

Date of Birth/Age :

08.04.1978

Date of Appointment :

10.10.2006

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Shree Deepit Singh

160000

Smt. Abha Singh

1000000

Shree Devinder Pal Singh

1000000

Shree Shyam Mohan Dwivedi

252500

Shree Chandan Singh

5000

Smt. Indra Banga

6769000

Shree Tushar Singh

4318859

Sara International Limited

1800000

 

 

 

Equity Share Breakup

Sr. No.

Category

Percentage

1.

Foreign holdings (Foreign institutional investor, Foreign companies, Foreign Financial institution, Non resident Indian or Overseas corporate bodies or others

60.00

2.

Bodies corporate

21.00

3.

Directors or Relatives of Directors

18.00

 

Total

100 %

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Towels, Bathrobe, Beach Towels etc.

 

 

 

 

GENERAL INFORMATION

 

Bankers :
  • Punjab National Bank
  • Corporation Bank

 

 

Facilities :

Secured Loans

Term Loans

i) Punjab National Bank

(Secured as first charge against fixed assets i.e. equitable mortgage of land and building and hypothecation of plant and machinery, furniture and fixture etc. of the company and personal guarantee of the Directors and corporate guarantee given by the group company, on pari pasu basis along with corporation bank)

(Installment Due Within One Year Rs. Nil)

 

ii) Corporation Bank

(Secured as first charge against fixed assets i.e. equitable mortgage of land and building and hypothecation of plant and machinery, furniture and fixture etc. of the company and personnal guarantee of the directors and corporate guarantee given by the group company, on pari-passu basis along with Punjab National Bank  )

(Installment Due Within One Year Rs. Nil)

 

(Rs. in Millions )

 

65.508

 

 

 

 

 

 

 

 

 

 

 

 

20.363

 

Total

85.871

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Sunil k. Khanna And Company

Chartered Accountant

Address :

606, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110019

 

 

Associates :

Sara International Limited.

Sara Universal Private Limited

Gopalpur Ports Limited.

Magnum India  

Sara Traders and Distributors

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs. 10/- Each

Rs.250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

24860700

Equity Shares

Rs. 10/- Each

Rs.248.607 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

248.607

198.607

88.175

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(28.624)

(7.349)

0.000

NETWORTH

219.983

191.258

88.175

LOAN FUNDS

 

 

 

1] Secured Loans

408.278

346.000

85.871

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

408.278

346.000

85.871

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

628.261

537.258

174.041

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

497.177

517.346

0.021

Capital work-in-progress

34.220

0.000

142.447

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

6.694

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
97.139

37.945

0.000

 

Sundry Debtors
35.869

3.168

0.000

 

Cash & Bank Balances
24.788

7.920

26.228

 

Other Current Assets
0.000

0.000

1.699

 

Loans & Advances
24.977

18.828

0.000

Total Current Assets
182.773

67.861

27.927

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
11.655

13.332

3.838

 

Provisions
74.254

34.617

0.000

Total Current Liabilities
85.909

47.949

3.838

Net Current Assets
96.864

19.912

24.089

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.790

 

 

 

 

TOTAL

628.261

537.258

174.041

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

244.942

35.998

N.A

Other Income

47.242

31.754

N.A

Total Income

292.184

67.752

N.A

 

 

 

 

Profit/(Loss) Before Tax

(21.252)

(6.571)

N.A

Provision for Taxation

0.000

0.000

N.A

Profit/(Loss) After Tax

(21.252)

(6.571)

N.A

 

 

 

 

Imports Value

0.000

0.000

61.326

 

 

 

 

Expenditures :

 

 

 

 

Financial Expenses

0.000

0.000

4.589

 

Personnel Expenses

0.000

0.000

0.170

 

Administrative Expenses

0.000

0.000

1.937

 

Raw Material Consumed

142.040

38.052

0.000

 

Purchases made for re-sale

0.000

0.000

0.000

 

Consumption of stores and spares parts

59.484

13.171

0.000

 

Increase/(Decrease) in Finished Goods

0.000

0.000

0.000

 

Salaries, Wages, Bonus, etc.

14.557

2.319

0.000

 

Managerial Remuneration

0.000

0.000

0.000

 

Payment to Auditors

0.261

0.174

0.000

 

Interest

24.581

4.766

0.000

 

Insurance Expenses

0.560

0.078

0.000

 

Power & Fuel

31.897

7.882

0.000

 

Depreciation & Amortization

23.066

5.463

0.000

 

Other Expenditure

16.990

2.418

0.000

Total Expenditure

313.436

74.323

6.696

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
(7.27)

(9.69)

---

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(8.67)

(18.25)

---

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(3.12)

(1.12)

---

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.09)

(0.03)

---

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.25

2.05

1.01

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.12

1.41

7.27

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Fix Assets

 

Form 8

 

Corporate identity number (CIN) Foreign company registration number

U18101DL2003PLC123708

 

Name of the Company

SARA TEXTILES LIMITED

Address

A-31, Sara House, Aauz –Khas, New Delhi – 110 016

This form is for

Creation of Charge

Type of Charge

  • Immovable Property
  • Movable Property

Particulars of the charge holder 

General Manager District Industries Centre Solan

DIC Chambaghat, Solan – 173213, Himachal Pradesh

Email ID : GMDICSLN-HP@NIC.IN

Nature or description of the instrument creating or modifying the charge
  1. Agreement of hypothecation for centre capital investment subsidy
  2. Agreement for availing centre capital investment subsidy
  3. letter of paripassu

Amount secured by the charge

Rs.3.000 Millions

Short particulars of the property charged

Hypothecation of plant and machinery situated at vill. Bhatian The Nalagarh, Dist Solan in the State of Himachal Pradesh

Date of Instrument Creating

21.05.2007

 

 

 

 

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]         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.39.40

UK Pound

1

Rs.78.28

Euro

1

Rs.58.23

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions