MIRA
INFORM REPORT
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Report Date : |
29.11.2008 |
IDENTIFICATION DETAILS
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Name : |
R J KNIT WEARS LIMITED |
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Registered Office : |
907 Rajeha Centre, Nariman Point, Mumbai – 400 021, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
29.04.1981 |
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Com. Reg. No.: |
11-24335 |
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CIN No.: [Company
Identification No.] |
U18101MH1981PLC024335 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR15998D |
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PAN No.: [Permanent
Account No.] |
AAACR3427R |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer and Exporter of Cotton Knitwear
Garments |
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 480000 |
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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.
Trade relations are fair. Business is active. Payments are reported as
usually made as per commitments. The company can be considered good for normal business dealings. |
INFORMATION DECLINED BY
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Name : |
Mr. Jagganath |
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Designation : |
Accounts |
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Date : |
28.11.2008 |
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Name : |
Mr. Omprakash Toshniwal |
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Designation : |
Manager |
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Date : |
28.11.2008 |
LOCATIONS
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Registered Office : |
907 Rajeha Centre, Nariman Point, Mumbai – 400 021, |
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E-Mail : |
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Website : |
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Corporate Office : |
303/4/5, A-Z Industrial Premises, G K Marg, Lower Parel, Mumbai – 400
013, |
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Tel. No.: |
91-22-24935421 / 4615901 / 24935422 |
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Fax No.: |
91-22-24935420 / 4615900 |
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E-Mail : |
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Factory : |
22-A/B, M G R Nagar, |
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Tel. No.: |
91-421-471968 / 470807 |
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Fax No.: |
91-421-472966 |
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Branch Office : |
D-183, Lajpat Nagar-I, |
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Tel. No.: |
91-11-6832796 |
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Fax No.: |
91-11-6329274 |
DIRECTORS
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Name : |
Mr. Pawan Sanghai |
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Designation : |
Managing Director |
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Address : |
211 Neelamber, |
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Date of Birth/Age : |
04.06.1955 |
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Date of Appointment : |
29.04.1981 |
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Name : |
Mr. Pritam Sanghai |
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Designation : |
Executive Director |
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Address : |
211 Neelamber, |
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Date of Birth/Age : |
25.05.1963 |
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Date of Appointment : |
25.10.1986 |
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Name : |
Mr. Umesh Kumar Agrawal |
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Designation : |
Director |
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Address : |
705 – B, |
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Date of Birth/Age : |
13.10.1953 |
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Date of Appointment : |
27.08.2001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 30.09.2008)
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Names of Shareholders |
No. of Shares |
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Prabhadevi Sanghai |
15734 |
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Pankaj Kumar Sanghai |
22000 |
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Ushadevi Sanghai |
9000 |
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Nandlal Sanghai |
9000 |
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Manjuladevi Sanghai |
14860 |
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Prabhas Kumar Sanghai |
9000 |
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Pritam Kumar Sanghai |
15140 |
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Pawan Sanghai |
7200 |
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Davesh Sanghai |
16570 |
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Vasudha Sanghai |
9000 |
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Parul Sanghai |
18000 |
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Viraj Sanghai |
11000 |
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Aneetha Sanghai |
3430 |
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Rahul Sanghai |
13000 |
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Udit Sanghai |
10000 |
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Deepti Sanghai |
8533 |
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Nidhi Sanghai |
8533 |
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Total |
200000 |
Equity Shares Breakup (Percentage of Total Equity)
(As on 30.09.2008)
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Category |
Percentage |
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Directors or relatives of directors |
75.22 |
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Other top fifty (50) shareholders |
24.78 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Cotton Knitwear
Garments |
GENERAL INFORMATION
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Bankers : |
·
Central Bank of Documentation Cell, Mumbai Main Office, M ·
The Zoroastrian Co-Operative Bank Limited ·
HDFC Bank Limited |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
N K Jalan and Company Chartered Accountants |
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Address : |
2-A, Mayur Apartments, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs.100/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs.100/- each |
Rs.20.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
20.000 |
20.000 |
20.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
76.565 |
74.782 |
73.679 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
96.565 |
94.782 |
93.679 |
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LOAN FUNDS |
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1] Secured Loans |
51.728 |
56.998 |
49.703 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
51.728 |
56.998 |
49.703 |
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DEFERRED TAX LIABILITIES |
5.710 |
7.239 |
7.472 |
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TOTAL |
154.003 |
159.019 |
150.854 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
36.389 |
39.652 |
43.126 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.042 |
1.042 |
1.042 |
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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 |
41.193
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44.754 |
42.520 |
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Sundry Debtors |
28.803
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16.355 |
6.238 |
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Cash & Bank Balances |
3.143
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2.962 |
2.835 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
71.428
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67.860 |
60.471 |
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Total
Current Assets |
144.567
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131.931 |
112.064 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
28.589
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15.904 |
9.945 |
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Provisions |
1.232
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1.352 |
0.908 |
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Total
Current Liabilities |
29.821
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17.256 |
10.853 |
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Net Current Assets |
114.746
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114.675 |
101.211 |
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MISCELLANEOUS EXPENSES |
1.826 |
3.650 |
5.475 |
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TOTAL |
154.003 |
159.019 |
150.854 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
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Sales Turnover |
179.595 |
203.997 |
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Other Income |
1.432 |
4.764 |
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Total Income |
181.027 |
208.761 |
89.867 |
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Profit/(Loss) Before Tax |
1.426 |
2.317 |
5.684 |
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Provision for Taxation |
0.000 |
0.000 |
0.428 |
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Profit/(Loss) After Tax |
1.426 |
2.317 |
5.256 |
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Expenditures : |
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Salaries, Wages, Bonus, etc. |
6.257 |
8.809 |
NA |
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Managerial Remuneration |
0.296 |
0.294 |
NA |
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Payment to Auditors |
0.024 |
0.020 |
NA |
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Interest |
4.526 |
4.256 |
2.040 |
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Insurance Expenses |
2.700 |
2.830 |
NA |
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Power & Fuel |
0.568 |
0.359 |
NA |
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Depreciation & Amortization |
3.307 |
3.691 |
3.766 |
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Other Expenditure |
161.923 |
186.185 |
78.377 |
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Total Expenditure |
179.601 |
206.444 |
84.183 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
0.79
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1.11 |
5.85 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.79
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1.14 |
6.32 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.79
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1.35 |
3.66 |
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Return on Investment (ROI) (PBT/Networth) |
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0.01
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0.02 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.84
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0.78 |
0.65 |
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Current Ratio (Current Asset/Current Liability) |
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4.85
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7.65 |
10.33 |
LOCAL AGENCY FURTHER INFORMATION
Form No. 8
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Corporate
identity number of the company |
U18101MH1981PLC024335 |
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Name of the
company |
R J KNIT WEARS LIMITED |
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Address of the registered
office or of the principal place of
business in |
907 Rajeha Centre, Nariman Point, Mumbai – 400 021, |
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This form is for |
Modification of
charge |
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Type of charge |
Immovable
property |
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Particular of
charge holder |
Central Bank of Corporate Finance
Branch, 1st Floor, M M O Building, M |
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Nature of
instrument creating charge |
No Instrument –
EMG has been extended in favour of Central Bank of |
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Date of
instrument Creating the charge |
07.08.2008 |
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Amount secured by
the charge |
Rs.94.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate
of interest As Stipulated by Bank from time to time ·
Terms
of repayment As Stipulated by Bank from time to time ·
Margin As Stipulated by Bank from time to time ·
Extent
and operation of the charge First charge (Present and future) EMG has been created by way of
Redeposit of title Deeds in favour of Central Bank of India for the limit
given to 1) R J Knitwear Rs.65.000 millions and Arjay Apparel Industries
Limited to the extent of Rs.29.500 millions = Total Limit Comes to Rs.94.500
millions ·
Others As Stipulated by Bank from time to time as per agreement and as per
sanction letter of the Bank. |
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Particulars of
the property charged |
First charge
(Present and future) EMG of Unit No. 303, Gala No.304, Unit No.305 and Unit
No.231 at A to Z Industrial Estate, 3rd Floor, Ganpatrao Kadam
Marg, Lower Parel, Mumbai – 13, situated at all piece and parcel of Land
lying being and situated at Lower Parel, Mumbai – 400 013 bearing Cadastral
Survey No. 265, 267, 2/267 and 3/267 of Lower Parel division in Registration
District and sub District, Mumbai City and Mumbai Suburban and Plot No 102
situated at Tirupur, Tamilnadu |
Fixed Assets
·
Factory Premises
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Office Premises
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Plant and Machinery
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Generator
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Computer
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Office Equipment
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Air Conditioner
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Vehicles
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Furniture and Fixture
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Electrical Installation
Web Details
Profile
Established in 1974, have
been in business for over 25
years. Part of a traditional well known 50
yr old textile group known for its integrity and dynamism . The group
has diversified into chemicals and software export business.
Production centre at Tirupur (the knit - town of
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a) Nightwear |
--
750,000 pcs |
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b) Polo T-shirt |
-- 300,000
pcs |
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c) T-Shirts |
-- 300,000 pcs |
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d) Undergarments |
-- 4,800,000
pcs |
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e) Sweat Shirts |
-- 50,000 pcs |
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f) Baby Wear |
-- 1,00,000
pcs |
Primary mission is Quality Control and Total Customer Satisfaction.
Have the latest State of the Art machinery and equipment primarily,
imported from
ISO 9002 -- certified by SGS Yarsley International Certification Services Limited,
Highly conscious of hygiene, cleanliness, safety and health, Approved
for the Certification of SA (Social Accountability) 8000 by DNV (Det Norske
Veritas) in the end June 2002.
Has the distinction of winning two awards for excellence in exports from
the Federation of India-
Government of Indian Export Organisation (FIEO). Have also been awarded
"TECHNOLOGY NEXT" award by the Confederation of Indian Apparel
Exporters, for the Best State of the Art Machineries for Export of Knitted
Garments.
No child labour.
Company managed by assiduous young entrepreneurs with a vision and wide
textile design background & tremendous international exposure.
Corporate office in
Company well established in the international market. Presently
exporting, interalia, to
Adequate production capacity for further expansion/exportation.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.49.84 |
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|
1 |
Rs.76.81 |
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Euro |
1 |
Rs.64.38 |
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 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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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 |
NO |
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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 |
|
|
>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 |
|