MIRA
INFORM REPORT
|
Report Date : |
03.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SCAN SYNTHETICS LIMITED |
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Registered Office : |
3808, Pahari Dhiray, New Delhi-110006 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.11.1993 |
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Com. Reg. No.: |
55-56184 |
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CIN No.: [Company
Identification No.] |
U74899DL1993PLC056184 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS09008G |
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Legal Form : |
A Closely Held Public Limited
Liability Company |
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Line of Business : |
Manufacturers of Nylon and Polyester Synthetic Yarn |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 31000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. The company had incurred substantial loss and has same accumulated
losses of past. Its payments are slow and delayed. The company can be considered for
small to mediocre business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Head Office : |
3808, Pahari Dhiray, New Delhi-110006, India |
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Tel. No.: |
91-11-23673227/ 23525400/ 3512876 |
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Fax No.: |
91-11-23674431 |
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E-Mail : |
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Website : |
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Factory 1 : |
E-1108, Riico Industrial Area, Phse III, Bhiwadi, Rajasthan, India |
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Tel. No.: |
91-1493-221055/ 222364 |
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Fax No.: |
91-493-223215 |
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Factory 2 : |
E-1107, Riico Industrial Area, Phase III, Bhiwandi, Rajasthan, India |
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Tel. No.: |
91-1493-221055/ 222364 |
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Fax No.: |
91-1493-223215 |
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Factory 1 : |
E-1263, Riico Industrial Area, Phase I, Extension, Khatal, Bhiwandi,
Rajasthan, India |
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Tel. No.: |
91-1493-221324 |
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Fax No.: |
91-493-512173 |
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Branches : |
Located AT:- ·
Mumbai ·
Tripur ·
Ludhiana |
DIRECTORS
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Name : |
Mr. Sunil Jain |
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Designation : |
Director |
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Address : |
3808, Pahari Dhiraj Delhi-110006, India |
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Date of Birth/Age : |
26.10.1966 |
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Date of Appointment : |
23.11.2006 |
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Name : |
Mr. Subhash Jain |
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Designation : |
Director |
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Address : |
3808, Pahari Dhiraj Delhi-110006, India |
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Date of Birth/Age : |
21.02.1940 |
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Date of Appointment : |
23.11.2006 |
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Name : |
Mr. Anil Kumar Jain |
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Designation : |
Director |
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Address : |
3808, Pahari Dhiraj Delhi-110006, India |
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Date of Birth/Age : |
26.11.1961 |
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Date of Appointment : |
25.07.2006 |
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Name : |
Mr. Sanjay Goel |
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Designation : |
Director |
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Address : |
7715, Ram Nagar, New Delhi-110055, India |
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Date of Birth/Age : |
19.09.1964 |
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Date of Appointment : |
23.11.1993 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
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Names of Shareholders |
|
No. of Shares |
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Jain Anil Kumar |
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439900 |
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Bardi Sh Abhey Chand |
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10000 |
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Jain Sh Sunil Kumar |
|
199700 |
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Anil Kumar Sunil Kumar |
|
370000 |
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Bothra Smt. Amrow |
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10000 |
|
Cosmos Holding India Private Limited |
|
25000 |
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Chandamal Properties Private Limited |
|
20000 |
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Chandmal and Sons Private Limited |
|
15000 |
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East India Manufacturing And Keting Private Limited |
|
40000 |
|
Factual Commercial Private Limited |
|
55000 |
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Smt. Hemlata |
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20000 |
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Kanak Lata Jain |
|
37100 |
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Kamal Singh |
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10000 |
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Kamal |
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10000 |
|
Credit and Leasing Company Private Limited |
|
170000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Directors or relatives of directors |
|
76.58 |
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Others |
|
23.42 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Nylon and Polyester Synthetic Yarn |
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Products : |
·
Nylon Crimped Yarns ·
Polypropylene Yarns ·
Polyester Crimped Yarns ·
Polyester Texturised Yarns ·
Polyester Spum Yarns ·
Cotton Dyed Yarns ·
Covered Yarns ·
Thread Yarns |
GENERAL
INFORMATION
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No. of Employees : |
About 300 |
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Bankers : |
Oriental Bank of
Commerce, B.O. Sadar Bazar, Delhi |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S Ramanand Aiyer and Company Chartered Accountant |
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Address : |
708, 711, Surya Kiran, 19, Kasturba Gandhi Marg, New Delhi-110001,
India |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4868450 |
Equity Shares |
Rs. 10/-
each |
Rs. 48.685
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
48.685 |
48.684 |
38.936 |
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2] Share Application Money |
0.203 |
3.033 |
21.476 |
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3] Reserves & Surplus |
32.365 |
32.365 |
10.742 |
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4] (Accumulated Losses) |
[18.673] |
[1.465] |
[3.760] |
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NETWORTH |
62.580 |
82.617 |
67.394 |
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LOAN FUNDS |
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1] Secured Loans |
107.756 |
87.803 |
44.026 |
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2] Unsecured Loans |
16.347 |
11.401 |
4.000 |
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TOTAL BORROWING |
124.103 |
99.204 |
48.026 |
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DEFERRED TAX LIABILITIES |
3.236 |
5.575 |
5.040 |
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TOTAL |
189.919 |
187.396 |
120.460 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
109.713 |
128.011 |
48.421 |
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Capital work-in-progress |
0.195 |
0.725 |
29.046 |
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INVESTMENT |
0.201 |
0.201 |
0.001 |
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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 |
54.568
|
48.867 |
46.881 |
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Sundry Debtors |
24.529
|
21.522 |
22.047 |
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Cash & Bank Balances |
0.303
|
1.960 |
4.746 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
28.929
|
24.274 |
5.734 |
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Total
Current Assets |
108.329
|
96.623 |
79.408 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
26.568
|
36.409 |
34.788 |
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Provisions |
1.951
|
1.755 |
1.628 |
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Total
Current Liabilities |
28.519
|
38.164 |
36.416 |
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Net Current Assets |
79.810
|
58.459 |
42.992 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
189.919 |
187.396 |
120.460 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
|
260.866 |
281.999 |
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Other Income |
|
3.445 |
4.625 |
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Total Income |
|
264.311 |
286.624 |
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Profit/(Loss) Before Tax |
|
[19.423] |
3.079 |
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Provision for Taxation |
|
2.214 |
0.784 |
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Profit/(Loss) After Tax |
|
[21.637] |
2.295 |
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Expenditures : |
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Raw Material Consumed |
|
194.597 |
212.743 |
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Consumption of stores and spares parts |
|
3.683 |
6.356 |
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Increase/(Decrease) in Finished Goods |
|
[12.984] |
[14.531] |
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Salaries, Wages, Bonus, etc. |
|
15.499 |
11.913 |
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Managerial Remuneration |
|
1.199 |
1.199 |
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Payment to Auditors |
|
0.236 |
0.157 |
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Interest |
|
12.225 |
4.472 |
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Insurance Expenses |
|
0.559 |
0.527 |
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Power & Fuel |
|
24.323 |
22.898 |
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Depreciation & Amortization |
|
21.533 |
8.961 |
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Other Expenditure |
|
22.864 |
28.850 |
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Total Expenditure |
|
283.734 |
283.545 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
[8.19]
|
0.80 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
[7.45]
|
1.09 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[8.90]
|
1.37 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
[0.31]
|
0.03 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.44
|
1.66 |
1.25 |
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Current Ratio (Current Asset/Current Liability) |
|
3.79
|
2.53 |
2.18 |
LOCAL AGENCY
FURTHER INFORMATION
|
Corporate
identity number of the company |
U74899DL1993PLC056184 |
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Name of the
company |
SCAN SYNTHETICS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
New Delhi-110006 |
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This form is for |
Modification of Charge |
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Type of charge |
Hypothecation |
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Particular of
charge holder |
Oriental Bank of
Commerce, Sadar Bazar, Delhi, NCT of Delhi-110006, India |
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Nature of
instrument creating charge |
Hypothecation
Agreement |
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Date of
instrument Creating the charge |
09.03.1995 |
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Amount secured by
the charge |
Rs. 4.500
Millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
The interest on
cash credit limit shall be charged at the rate of 5.5% p.a. over RBI rate
subject to a minimum of 17.5% p.a. with quarterly rests with an overdue at
the rate of 2% p.a. Margin – 25% Payable on Demand |
||||||||||||||
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Particulars of
the property charged |
Hypothecation of
stocks of raw material, stock in process and finished goods of polyester and
Nylone Yarns including all products / merchandise/ goods/ vehicles/ machinery
any type of movable property of the kind and description as described in the
schedule of security, belonging to them which now or hereafter form time to
time during the continuance of this agreement may be brought in stored or be
in or about their premises or godown at Plot No. E-1108 Riico Industrial
Area, Phase – III, Bhiwandi or any godown/ Place or been transit form one
place or godown to another or wherever elese the same may be. Collaterally
secured by hypothecation of all the borrowers’ present and future book debts,
outstanding, decrees, moneys receivables, claims, bills, contracts,
engaments, securities, investgments, bank deposits rights and other movable
assets. |
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Charge
identification number of the charge to be modified |
80002773 |
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Brief description
of the instrument modifying the charge under section 135 |
Supplemental
Agreement to secure credit loan facilities |
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Date of
instrument modifying the charge |
29.04.2006 |
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Particulars of
the present modification |
The amount of
charge over the assets as mentioned in column. No13 (C ) above stands
enhanced from Rs. 99.025 Millions to Rs. 112.025 Millions to secure various
credit facilities granted by bank to the company.
Interest/
Commision shall be charged as may be prescribed by the bank from time to
time. Others terms and
conditions remained the same. |
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Name of the company |
SCAN SYNTHETICS LIMITED |
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Presented By |
Chief Manager,
Oriental Bank of Commerce, B.O. Sadar Bazar, Delhi |
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1) Date and description of instrument creating the change |
Agreement Dated
09.03.1995 registered on 19.09.1995 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 4.500
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 of Raw Material, Stock and finished goods of polyester and nylon yarns
including all products/ merchandise/ goods/ vehicles/ machinery, any type of
movable property of the king and description as described in the schedule of
security, belonging to them which now or hereafter from time to time during
continuance of this agreement may be brought in stored or be in or about
their Riico Industrial Area, Phase – (III), Bhiwandi or any other godown/
place or godown to another or wherever elese the same may be. Collaterally
secured by hypothecation of all the borrower’s present and future book debts,
outstanding, decrees, money receviables, claims, bills, contracts,
engagement, securities, investment, bank deposits, rights and another moveable
assets. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The Interest on
Cash Credit Limit Shall be charged at the Rate of 5.5% p.a. over R.B.I rate
subjects to a minimum of 17.5% p.a. with quarterly rests with an overdue
interest at the rate of 2% p.a. Margin @ 25% Payable on demand |
|
5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of
Commerce, B.O. Sadar Bazar, Delhi |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
AS PER WEBSITE
History:
The Company Situated in Bhiwadi,
Rajasthan India. They are a manufacturers of nylon and polyester
synthetic yarn. Pioneers in India for manufacturing and selling Polyproplyne
(Specialty Yarns), polyester and nylon textured dyed, twisted and raw white
yarns specially for hosiery Products. Unit consists of POY Spinning,
texturising, dyeing, twisting, doubling machines and world class lab equipments
to cater to all kinds of customers.
Subject was established in 1994
having its corporate office at 3808,
Pahari Dhiraj, Delhi 110 006 and branch offices at Tripur, Ludhiana and
Mumbai. The production facilities are located in Bhiwadi, District Alwar,
Rajasthan, India where texturising, crimping, twisting and dyeing process are
done. The prime products of the Company are Nylon, Polyester and Cotton
including some specialty yarns. The installed capacity of the Company is
approx. 400 MT per month. The Company has been catering to the industry since
inception to all major textile houses both in the domestic as well as international
markets and committed to maintain global standards.
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.46.96 |
|
UK Pound |
1 |
Rs.83.91 |
|
Euro |
1 |
Rs.66.36 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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 |
|