MIRA
INFORM REPORT
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Report Date : |
25.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHINAR FORGE LIMITED |
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Registered Office : |
C 85-86, Focal Point Extension, Jalandhar – 144004, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.05.1992 |
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Com. Reg. No.: |
012269 |
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CIN No.: [Company
Identification No.] |
U27310PB1992PLC012269 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer and exporters of the Synthetic, Printed Tufted Carpets, Mats and Rug’s. |
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 128240 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is engaged in Manufacture and Sale of Carpet, Blankets and Allied Products. Trade relations are fair. General financials position is satisfactory. Payments are 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 : |
C 85-86, Focal Point Extension, Jalandhar – 144004, Punjab, India |
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Tel. No.: |
91-181-290001/3/291616/ 5083420/ 2603003/ 2270582 |
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Fax No.: |
91-181-290001/5086179 |
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E-Mail.: |
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Website : |
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Factory : |
C – 109, Focal Point, Extension, Jalandhar – 144004, Punjab, India |
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Tel. No.: |
91-181-290001/2/32270582/ 291616 |
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Fax No.: |
91-181-290001/5086179 |
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Website : |
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International Market : |
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DIRECTORS
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Name : |
Mr. Basant Parkash Vij |
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Designation : |
Director |
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Address : |
S – 9, Industrial Area, Jalandhar |
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Date of Appointment : |
24.09.1996 |
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Name : |
Ms. Shital Vij |
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Designation : |
Director |
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Address : |
S – 9, Industrial Area, Jalandhar |
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Date of Appointment : |
18.02.1997 |
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Name : |
Ms. Vani Vij |
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Designation : |
Director |
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Address : |
S – 9, Industrial Area, Jalandhar |
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Date of Appointment : |
24.09.1996 |
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Name : |
Ms. Sheetesh Vij |
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Designation : |
Director |
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Address : |
S – 9, Industrial Area, Jalandhar |
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Date of Appointment : |
24.12.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
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Names of Shareholders |
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No. of Shares |
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Mr. Basant Parkash Vij |
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100 |
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Ms. Shital Vij |
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450100 |
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Ms. Vani Vij |
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56300 |
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Mr. R K Bhan |
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100 |
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Mr. C K Koul |
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100 |
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Ms. Sarla Bhan |
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100 |
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Ms. Kusum Koul |
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100 |
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Total |
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506900 |
(As on 31.03.2007)
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Category |
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Percentage |
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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 and exporters of the Synthetic, Printed Tufted Carpets, Mats and Rug’s. |
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Products : |
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Exports : |
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Countries : |
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GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
300 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Koul Vijh and Associates Chartered Accountant |
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Address : |
30 Prakash Nagar, Model Town, Jalandhar – 144001, Punjab, India |
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Name : |
Chandra Kiran and Company Chartered Accountant |
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Address : |
30 Prakash Nagar, Model Town, Jalandhar – 144001, Punjab, India |
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Associates/Subsidiaries : |
Shital Fibres Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2500000 |
Equity Shares |
Rs.10/- Each |
Rs.25.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1206900 |
Equity Shares |
Rs.10/- Each |
Rs.12.069 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 |
12.069 |
7.569 |
5.069 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
19.991 |
8.034 |
6.581 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
32.060 |
15.603 |
11.650 |
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LOAN FUNDS |
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1] Secured Loans |
53.357 |
40.962 |
12.145 |
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2] Unsecured Loans |
39.900 |
32.200 |
31.252 |
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TOTAL BORROWING |
93.257 |
73.162 |
43.397 |
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DEFERRED TAX LIABILITIES |
8.815 |
6.445 |
2.433 |
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TOTAL |
134.132 |
95.210 |
57.480 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
83.304 |
72.973 |
50.907 |
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Capital work-in-progress |
0.000 |
0.275 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
63.535
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18.951 |
21.599
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Sundry Debtors |
40.478
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31.511 |
23.036
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Cash & Bank Balances |
20.582
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22.403 |
26.260
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Other Current Assets |
0.000
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0.000 |
0.000
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Loans & Advances |
15.111
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13.496 |
1.530
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Total
Current Assets |
139.706
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86.361 |
72.425 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
87.090
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63.887 |
65.081
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Provisions |
1.838
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0.514 |
0.776
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Total
Current Liabilities |
88.928
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64.401 |
65.857 |
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Net Current Assets |
50.778
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21.960 |
6.568
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MISCELLANEOUS EXPENSES |
0.050 |
0.002 |
0.005 |
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TOTAL |
134.132 |
95.210 |
57.480 |
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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 |
273.250 |
182.364 |
113.744 |
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Other Income |
2.115 |
0.342 |
0.596 |
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Total Income |
275.365 |
182.706 |
114.340 |
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Profit/(Loss) Before Tax |
16.378 |
6.089 |
8.962 |
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Provision for Taxation |
4.207 |
4.526 |
1.052 |
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Profit/(Loss) After Tax |
12.171 |
1.563 |
7.910 |
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Export Value |
176.181 |
117.951 |
NA |
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Expenditures : |
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Raw Material Consumed |
217.047 |
136.958 |
86.534 |
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Increase/(Decrease) in Finished Goods |
(16.866) |
1.541 |
0.000 |
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Salaries, Wages, Bonus, etc. |
6.321 |
4.476 |
1.889 |
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Payment to Auditors |
0.018 |
0.016 |
0.003 |
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Interest |
6.342 |
5.558 |
1.693 |
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Insurance Expenses |
1.034 |
0.561 |
0.215 |
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Power & Fuel |
12.539 |
6.189 |
5.578 |
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Depreciation & Amortization |
3.958 |
3.362 |
1.019 |
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Other Expenditure |
28.593 |
17.955 |
8.446 |
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Total Expenditure |
258.986 |
176.616 |
105.377 |
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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 |
(%) |
4.42
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0.85 |
6.92
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Net Profit Margin (PBT/Sales) |
(%) |
5.99
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3.34 |
7.88
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.34
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3.82 |
7.26
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Return on Investment (ROI) (PBT/Networth) |
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0.51
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0.39 |
0.76
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Debt Equity Ratio (Total Liability/Networth) |
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5.68
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8.82 |
9.37
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Current Ratio (Current Asset/Current Liability) |
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1.57
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1.34 |
1.09
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LOCAL AGENCY
FURTHER INFORMATION
Form 8:
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Corporate
identity number (CIN) Foreign company registration number |
U27310PB1992PLC012269 |
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Name of the
Company |
CHINAR FORGE LIMITED |
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Address |
C 85-86, Focal Point Extension, Jalandhar – 144004, Punjab, India |
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This form is for |
Modification of
Charge |
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Type of Charge |
Immovable
Property Book Debts |
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Particulars of
the charge holder |
Canara Bank Industrial Area,
Jalandhar – 144008, Punjab, India |
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Nature or
description of the instrument(s) creating or modifying the charge |
Limit enhanced to
: PC Rs.10.000
Millions FLC Rs.10.000
Millions FBE Rs.10.000
Millions OCC Rs.5.000
Millions MTL Rs.30.000
Millions BG Rs.10.000
Millions As on 25.03.2005.
Further modified PC Rs.30.000 Millions, FLC/ILC Rs.70.000 Millions as on
20.07.2006. Further Modified FLC Rs.100.000 Millions as on 07.03.2007 |
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Date of the
instrument creating or modifying the charge |
07.01.2008 |
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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
Interests: 9% P.A. Terms of
Repayment: On Demand Margin: 25% Extent and
operation of the charge: 100% |
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Short particulars
of the property charged (including location of the property) |
Property at C-109
Focal Point Extention, Jalandhar |
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Particular of the
present modification |
FBE enhanced to
Rs.30.000 Millions from Rs.10.000 Millions dated 07.01.2008 |
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Name of the company |
CHINAR FORGE LIMITED |
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Presented By |
Ms. Shital K. Vij |
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1) Date and description of instrument creating the change |
Pronote/
Hypothecation Agreement packing credit dated 29.06.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
PC/FLC Limit of
Rs.20.000 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, receivables and other fixed assets movable, immovable in the name of
the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Extent :
100% Rate :
14.255 Repayment :
On Demand Margin :
25% |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, SSI Branch,
Industrial Area, Jalandhar |
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6) Date and brief description of instrument modifying the charge |
Deed of
Hypothecation dated 25.03.2005/ Letter of continuity dated 25.03.2005 |
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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. |
PC/FLC Limit of
Rs.20.000 Millions dated 29.06.2004 registered as on 17.08.2004 Limit
enhanced as follows: PC Rs.10.000
Millions FLC Rs.20.000
Millions FBE Rs.10.000 Millions OCC Rs.5.000
Millions MTL Rs.30.000
Millions BG Rs.10.000
Millions Total
Rs.85.000 Millions Hypothecation
machinery from Rs.,5.600 Millions, interests 13.25% Term Loan Installment
Rs.0.093 Million payable in 60 month installment extent 100% |
Fixed Assets:
- Land
- Building
- Plant and Machinery
- Electrical Fitting
- Computer
- Office Equipment
- Car
- Motor Cycle
Website details
Profile:
Subject has started manufacturing of carpets in the year
2001.They have started operation with one tufted machine and one chromojet
printing machine and over a short time subject was forced to add 3 more tufting
machines and 3 more chromojet printing machine to accommodate the tremendous
growth. Subject has become the first company in India, who is manufacturing chromojet
printed carpets with gel foam backing. Subject offers total in house production
including tufting, foaming printing and finishing. This versatility allows
complete quality control and the ability to quickly adjust to market demands
and service requirements.
Subject offers medium to high end qualities with a broad
range of textures for the residential market. In addition to level loop,
cutpile, heavy loop and mink qualities
Subject has a staff of experienced technicians who are continuously creating
new designs and developing special products with the latest technology and
state of Art machinery.
Besides India their products are
extremely popular in EUROPE, U.S and MIDDLE EAST market. The company is
dedicated to the changing trends of designs and to meet the expectation of its
clients. The company has a capacity to produce 10,000 squares meters a day
chromojet printed tufted carpets.
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.40.34 |
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UK Pound |
1 |
Rs.79.81 |
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Euro |
1 |
Rs.62.01 |
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 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
NO |
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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 |
|
48 |
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 |
|
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 |
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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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