MIRA
INFORM REPORT
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Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
THE CHOICE FASHION PRIVATE LIMITED |
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Registered Office : |
142, Adarsh Nager, Jaipur – 302 005, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.11.1987 |
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Com. Reg. No.: |
17-4166 |
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CIN No.: [Company
Identification No.] |
U74994RJ1987PTC004166 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Ladies and Kids Garments and Handicrafts |
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 370000 |
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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 reported company meeting its normal
commitments timeously. Trade relations are fair. Business is active. General
financial position is satisfactory. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
142, Adarsh Nager, Jaipur – 302 005, Rajasthan, India |
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E-Mail : |
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Factory : |
E-97, E P I P, Sitapur Industrial Area, Jaipur – 302 026, Rajasthan,
India |
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Tel. No.: |
91-141-2551716, 2770123 |
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Mobile No.: |
91-141-9828500200 |
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Fax No.: |
91-141-2551716 |
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E-Mail : |
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Area : |
90000 Sq. ft. |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Ishwar Adwani |
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Designation : |
Director |
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Address : |
144, Adarsh Nagar, Jaipur – 302 004, Rajasthan, India |
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Date of Birth/Age : |
59 Years |
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Qualification : |
Graduate |
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Experience : |
28 Years |
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Date of Appointment : |
10.11.1987 |
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Name : |
Mrs. Poonam Adwani |
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Designation : |
Director |
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Address : |
144, Adarsh Nagar, Jaipur – 302 004, Rajasthan, India |
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Date of Birth/Age : |
23.12.1952 |
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Qualification : |
Graduate |
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Experience : |
22 Years |
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Date of Appointment : |
10.11.1987 |
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Name : |
Mrs. Rita Adwani |
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Designation : |
Director |
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Address : |
8, Sindhi Colony, Banipark, Jaipur, Rajasthan, India |
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Date of Appointment : |
10.11.1987 |
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Name : |
Mr. Har Chand Rai Bachani |
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Designation : |
Director |
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Address : |
153, Chandrabala Estate, 30 Road, Bandra, Mumbai, Maharashtra, India |
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Date of Appointment : |
15.02.1988 |
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Name : |
Mr. Raj Kumar Adwani |
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Designation : |
Director |
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Address : |
8, Sindhi Colony, Banipark, Jaipur, Rajasthan, India |
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Date of Birth/Age : |
10.08.1956 |
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Date of Appointment : |
10.02.1993 |
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Name : |
Mr. Naveen Adwani |
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Designation : |
Director |
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Address : |
144, Adarsh Nagar, Jaipur – 302 004, Rajasthan, India |
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Date of Birth/Age : |
08.05.1974 |
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Qualification : |
Graduate |
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Experience : |
15 Years |
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Date of Appointment : |
01.03.1996 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Ishwar Adwani |
231630 |
43.96% |
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Poonam Adwani |
231630 |
43.96% |
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Hitesh Adwani |
63630 |
27.47% |
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Total |
526890 |
100.00% |
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
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Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Ladies and Kids Garments and Handicrafts |
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Products : |
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Exports : |
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Products : |
Garments |
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Countries : |
·
Japan ·
Europe ·
USA ·
France |
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Imports : |
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Products : |
Fabrics |
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Countries : |
China |
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Terms : |
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Selling : |
L/C and Cash |
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Purchasing : |
L/C and Cash |
PRODUCTION STATUS
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Particulars |
Installed
Capacity |
Actual
Production |
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Garments |
2500 Pcs. Per
Month |
As per Demand |
GENERAL
INFORMATION
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Customers : |
·
Wholesalers ·
Retailers ·
End Users ·
Others ·
Department Stores |
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No. of Employees : |
496 (In Office 26 and In Factory 470) |
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Bankers : |
Indusind Bank
Limited Sangam Complex,
Church Road, Jaipur |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S.R. Surana and Company Chartered Accountants |
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Address : |
Paras Bhawan, Haldiyon Ka Rasta, Jahari Bazar, Jaipur – 302 002,
Rajasthan, India |
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Sister Concern : |
·
The Choice 142, Adarsh Nager,
Jaipur – 302 005, Rajasthan, India Line of Business
: Manufacturer and Exporter of Ladies and Kids Garments and Handicrafts ·
Poonam Enterprises Jaipur |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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550000 |
Equity Shares |
Rs.10/- each |
Rs.5.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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526890 |
Equity Shares |
Rs.10/- each |
Rs.5.269
millions |
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 |
5.269 |
5.269 |
5.269 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
68.640 |
58.517 |
52.203 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
73.909 |
63.786 |
57.472 |
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LOAN FUNDS |
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1] Secured Loans |
29.170 |
52.261 |
10.237 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
29.170 |
52.261 |
10.237 |
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DEFERRED TAX LIABILITIES |
0.267 |
0.267 |
0.249 |
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TOTAL |
103.346 |
116.314 |
67.958 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
50.105 |
51.057 |
18.680 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
4.032 |
3.336 |
6.834 |
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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 |
0.000
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0.000 |
25.841 |
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Sundry Debtors |
0.000
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0.000 |
21.981 |
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Cash & Bank Balances |
0.000
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0.000 |
1.048 |
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Other Current Assets |
59.941
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78.101 |
0.000 |
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Loans & Advances |
0.000
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0.000 |
7.070 |
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Total
Current Assets |
59.941
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78.101 |
55.940 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
10.732
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16.180 |
12.421 |
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Provisions |
0.000
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0.000 |
1.075 |
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Total
Current Liabilities |
10.732
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16.180 |
13.496 |
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Net Current Assets |
49.209
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61.921 |
42.444 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
103.346 |
116.314 |
67.958 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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64.897 |
94.757 |
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Other Income |
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14.816 |
7.028 |
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Total Income |
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79.713 |
101.785 |
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Profit/(Loss) Before Tax |
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13.659 |
8.742 |
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Provision for Taxation |
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3.250 |
2.410 |
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Profit/(Loss) After Tax |
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10.409 |
6.332 |
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Earnings in Foreign Currency : |
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Export Earnings |
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3.465 |
4.792 |
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Expenditures : |
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Cost of Material |
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52.816 |
78.958 |
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Administrative Expenses |
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9.243 |
10.741 |
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Selling and Distribution |
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2.142 |
1.706 |
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Depreciation & Amortization |
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1.853 |
1.631 |
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Other Expenses |
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0.000 |
0.007 |
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Total Expenditure |
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66.054 |
93.043 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
13.06
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6.22 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
21.05
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9.23 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
12.41
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6.77 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.18
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0.14 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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0.54
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1.07 |
0.41 |
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Current Ratio (Current Asset/Current Liability) |
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5.59
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4.83 |
4.14 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References :
·
Mitsui and Company, Japan
·
INDITEX – Spain and France
Form No. 8
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Name of the company |
THE CHOICE FASHION PRIVATE LIMITED |
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Presented By |
Shri Ishwar
Advani, Director |
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1) Date and description of instrument creating the change |
31.03.2005 Composite
Agreement for Hypothecation of Stocks, Book Debts, Other Current Assets and
Plant and Machinery. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.13.000
millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
Stocks, Book Debts, Other Current Assets and Plant and Machinery. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 6.5%
p.a. + Interest tax Repayable on
demand, Margin 25% |
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5) Name and Address and description of the person entitled to the charge. |
Indusind Bank
Limited Sangam Complex,
Church Road, Jaipur |
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6) Date and brief description of instrument modifying the charge |
26.12.2005
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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. |
Credit Facility
increased to Rs.58.500 millions. Interest @ 6.5%
below PLR which is presently 13.50% subject to minimum 7% p.a. Mortgage of:- Plot No. 142,
Adarsh Nagar, Jaipur Plot No. 337,
Adarsh Nagar, Jaipur E-97, Sitapura
Industrial Area, Jaipur All other terms
and condition remain same. |
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
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Indian Rupees |
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US Dollar |
1 |
Rs.43.13 |
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UK Pound |
1 |
Rs.85.02 |
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Euro |
1 |
Rs.67.77 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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