MIRA INFORM REPORT

 

 

 

Report Date :

06.11.2008

 

IDENTIFICATION DETAILS

 

Name :

PARTAP INDUSTRIES LIMITED

 

 

Registered Office :

Village Beopror G.T. Road, Tehsil Rajpura, District Patiala - 147001, Punjab

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

16.08.1988

 

 

Com. Reg. No.:

008614

 

 

CIN No.:

[Company Identification No.]

L15142PB1988PLC008614

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PTLP12221G

 

 

PAN No.:

[Permanent Account No.]

AABCP0384Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturer of Cotton Yarn, Vegetable Fats and Oils and Denim Fabric.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 600000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Trade relations are fair. Payments are reported as slow but correct.

 

General financial position is satisfactory. Profit margin is under pressure. The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office/ Factory :

Village Beopror G.T. Road, Tehsil Rajpura, District Patiala - 147001, Punjab

Tel. No.:

91-1762-265256/ 265246

Fax No.:

91-1762-85246

E-Mail :

jpjnco@hotmail.com

Website :

www.partapindustries.com

 

 

Corporate Office :

N.H. – 1, Rajpura Road, Shambhu, Punjab, India

E-Mail :

info@partapindustries.com

 

 

DIRECTORS

 

Name :

Mr. Sudarshan Paul Bansal

Designation :

Chairman cum Managing Director

Address :

763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India

Date of Birth/Age :

21.06.1954

Date of Appointment :

16.08.1988

DIN/ PAN No.:

00178378

 

 

Name :

Mr. Satish Kumar Bansal

Designation :

Director

Address :

31, Sector – 9, Urban Estate, Amabala City, District Ambala – 134 003, Haryana, India

Date of Birth/Age :

17.07.1960

Date of Appointment :

01.04.1992

DIN/ PAN No.:

00286229

 

 

Name :

Ms. Sunita Bansal

Designation :

Director

Address :

763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India

Date of Birth/Age :

12.03.1961

Date of Appointment :

01.04.2000

DIN/ PAN No.:

00178380

 

 

Name :

Mr. Sidhharth Bansal

Designation :

Director

Address :

763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India

Date of Birth/Age :

17.03.1986

Date of Appointment :

07.05.2004

DIN/ PAN No.:

00178382

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2007

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

0.50

Bodies corporate

 

15.00

Directors or relatives of directors

 

17.00

Other top fifty shareholders

 

12.00

Others

 

55.50

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cotton Yarn, Vegetable Fats and Oils and Denim Fabric.

 

 

Products :

 Product Description

ITC Code

Fatty Acids

15142

Cotton Yarn

52021

Denim Fabric

52110

 

PRODUCTION STATUS As on 31.03.2008

 

Particulars

Unit

Actual Production

Spinning Unit

Cotton Spinning

M. Tons

5955

Denim Unit

Denim Fabric

Lacs Meters

100

Baddi Unit

Distilled Fatty Acid Oils

M. Tons

17000

Pitch

M. Tons

1000

Glycerin

M. Tons

1500

 

 

GENERAL INFORMATION

 

Suppliers :
  • Gulati Roadlines, Ambala City
  • Gulab Dyeing, Ludhiana
  • Hans Freight Carriers, Rajpura
  • Haryana Golden Transport Company
  • Jai Durga Transport Company
  • Jupitor Comtex Private Limited, Ahmedabad
  • Kalyan Dass Rajeev Kumar, Hathras
  • Kumar Overseas Impex, Ludhiana
  • Laxmi Card Clothing, Coimbatore
  • Mukesh Kumar, Delhi
  • Kaka Transport Company, Ambala City
  • Kabir Transport Company, Ambala City
  • Jai Shanker Highway Carriers
  • Balaji Enterprises, Delhi
  • Deval Distributors, Ahmedabad
  • Highway Services, Shambhu
  • Golden Trading Company, Panipat
  • Global Oils and Fats Limited
  • C.R.L. Terminal Private Limited

 

 

Customers :
  • Anant Overseas, Panipat
  • Drishti Impex, Mumbai
  • Ghanshyam Dass Ram Lal, Mandi Gobindgarh
  • Grewal Enterprises
  • Hind Tex Industries, Coimbatore
  • Hind Wool Company, Panipat
  • Kamal Cotton Traders Private limited, Mandi Gobindgarh
  • King Exim Private Limited, Noida
  • Lahoti Overseas, Delhi
  • Naveen Trading Company, Ludhiana
  • Ram Lord, Mumbai
  • Partap Extraction Private Limited
  • Sagar Agencies, Ahmedabad
  • United Textiles Limited, Hissar
  • Shri Krishan Lal Mahavir Prasad
  • Shivam Consolidated, Chandigarh
  • Sara Textiles Limited, Nalagarh
  • S.R. Yarn Distributors, Icchalkaranji
  • M.G. Enterprises, Panipat

 

 

No. of Employees :

About 300

 

 

Bankers :
  • Bank of Baroda
  • ICICI Bank

 

 

Facilities :

Secured Loans :

 

 

As on 31.03.2008

Rs. in Millions

Bank of Baroda (MTL – 1 A/c No.177)

21.289

Bank of Baroda (MTL – 2 A/c No.339)

2.498

Bank of Baroda (MTL – 3 A/c No.366)

111.661

Bank of Baroda (MTL – 4 A/c No.446)

137.107

Bank of Baroda (MTL – Baddi A/c No.343)

4.595

Bank of Baroda (Cash Credit Account No.54)

49.190

Bank of Baroda (Cash Credit Baddi Account No.134)

6.942

ICICI Bank (TATA 207)

0.243

ICICI Bank (Car Loan)

0.781

Interest Accrued and Due (BOB TLs)

5.321

Total

339.627

 

Note:

  1. Working Capital Loan from Bank of Baroda is secured by Hypothecation of Inventories, debtors and on the personal guarantee of directors, First Charge on the factory land, building and machinery.
  2. Term Loan from Bank of Baroda is secured by Hypothecation of Plant and Machinery. First charge on factory land, building, plant and personal guarantee of the directors.

 

Unsecured Loans :

 

 

As on 31.03.2008

Rs. in Millions

From Directors and Shareholders

12.925

Total

12.925

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Kant Goyal and Associates

Chartered Accountants

Address :

34, Sector – 9, Urban Estate, Ambala City – 134 003, Haryana, India

 

 

Associates/Subsidiaries :

Maha Kali Chem Oils Limited

CIN No:U15140HR1991PLC031150

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

6500000

Equity Shares

Rs.10/- Each

Rs.65.000 Millions

 

 

 

 

 

Issued & Subscribed:

No. of Shares

Type

Value

Amount

5507000

Equity Shares

Rs.10/- Each

Rs.55.070 Millions

 

 

 

 

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

2134800

Equity Shares

Rs.10/- Each

Rs.21.348 Millions

3372900

Equity Shares

Rs.2.50/- Each

Rs.8.432 Millions

 

Calls in Advance

 

Rs.1.804 Millions

 

Share Application Money (Pending Allotment)

 

Rs.17.560 Millions

 

Total

 

Rs.49.144 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

49.144

31.584

31.584

2] Share Application Money

0.000

17.560

7.500

3] Reserves & Surplus

71.443

64.044

49.629

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

120.587

113.188

88.713

LOAN FUNDS

 

 

 

1] Secured Loans

339.627

358.962

221.918

2] Unsecured Loans

12.925

4.679

3.531

TOTAL BORROWING

352.552

363.641

225.449

DEFERRED TAX LIABILITIES

9.974

8.152

5.902

 

 

 

 

TOTAL

483.113

484.981

320.064

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

396.129

423.002

267.494

Capital work-in-progress

0.000

0.000

3.032

 

 

 

 

INVESTMENT

6.500

6.500

6.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
57.797

74.667

48.444

 

Sundry Debtors
17.709

9.288

8.389

 

Cash & Bank Balances
2.444

4.179

2.686

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
44.469

29.881

11.135

Total Current Assets
122.419

118.015

70.654

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
40.512

61.626

23.750

 

Provisions
1.563

1.119

4.236

Total Current Liabilities
42.075

62.745

27.986

Net Current Assets
80.344

55.270

42.668

 

 

 

 

MISCELLANEOUS EXPENSES

0.140

0.209

0.370

 

 

 

 

TOTAL

483.113

484.981

320.064

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

655.999

469.478

292.893

Other Income

0.141

0.628

0.656

Total Income

656.140

470.106

293.549

 

 

 

 

Profit/(Loss) Before Tax

9.454

6.301

16.479

Provision for Taxation

2.822

2.985

6.200

Profit/(Loss) After Tax

6.632

3.316

10.279

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

427.369

344.456

194.551

 

Consumption of stores and spares parts

36.032

12.686

22.405

 

Increase/(Decrease) in Finished Goods

23.376

20.014

0.000

 

Salaries, Wages, Bonus, etc.

10.256

6.356

3.825

 

Managerial Remuneration

0.720

0.420

0.435

 

Payment to Auditors

0.035

0.035

0.035

 

Interest

29.802

16.329

7.923

 

Insurance Expenses

1.347

1.347

0.656

 

Power & Fuel

68.159

4.540

13.785

 

Depreciation & Amortization

38.341

3.275

22.211

 

Other Expenditure

11.249

54.347

11.244

Total Expenditure

646.686

463.805

277.070

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
1.01

0.71

3.50

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.44

1.34

5.63

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.80

1.15

4.74

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.08

0.06

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.27

3.77

2.86

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.91

1.88

2.52

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Operations and Out Look for the current year:

 

There is a remarkable growth in sales and profits, which will continue. The Management is hopeful that the current year the Company is likely to achieve more targets as set by it.

 

Dividend and Reserves:

 

This year too no dividend has been recommended by the Directors and consequently no amounts have been transferred to general reserves, instead entire profits have been ploughed back for operations of the Company.

 

WEBSITE DETAILS:

 

Profile:

 

Partap Group was established in 1970’s as a manufacturer of solvent extracted oil in the state of Punjab and Haryana under the inspiring vision and leadership of Late Sh. Ram Partap Bansal. The group experienced steady and significant growth in the field of Oil industry. With an objective to serve today’s diverse and innovative market needs, the group broadened its operations in the field of Textile. The management seeks leadership through investment and innovation in the most contemporary business activities. Leveraging on the state of the art technologies, the group opted for the latest techniques in the textile domain, with no time the vision personified into reality with the continually evolving product line comprising of Garmenting, Denim Fabric, Knitted Fabric, various Yarns, and many more.....


Very soon, the group matched the market needs and commenced its journey to be recognized as a leader amongst leaders. Partap Group’s growth has been founded on a consistent philosophy that to be able to deliver the range and quality of product that the customers demand and the scale and nationwide presence to do so competitively.
Sharing knowledge has been at the heart of Partap Group’s management approach. The knowledge sharing initiative is designed to speed up the flow of best practices and techniques around the world.
Partap Group is contributing to shape the future of textile. The goal is to be more than just successful. It is to be admired for the culture and quality, service and management standards that it implies. Nothing less will do.

 

 

 

Environmental Policies

 

Partap Group commits itself to continually improve the environmental managements it strives to go beyond the requirements of the applicable environmental laws and regulations through:

 

 

 

 

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.47.18

UK Pound

1

Rs.75.05

Euro

1

Rs.60.89

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--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

 

 

--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

 

46

 

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