MIRA
INFORM REPORT
|
Report Date : |
18.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LEENA DENIM LIMITED |
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Registered Office : |
Ground Floor C-5, Wecl Opposite Seepz, Andheri (East), Mumbai-400093, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.04.1987 |
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Com. Reg. No.: |
11-43044 |
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CIN No.: [Company
Identification No.] |
U51900MH1987PLC043044 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04760A |
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PAN No.: [Permanent
Account No.] |
AAACK0687R |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Readymade Garments |
RATING &
COMMENTS
|
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 580000 |
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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 a well-established and reputed company having satisfactory track.
Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. C Ravindra Nair |
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Designation : |
Senior Accountant |
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Date : |
17.09.2008 |
LOCATIONS
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Registered Office : |
Ground Floor C-5, Wecl Opposite Seepz, Andheri (East), Mumbai-400093,
Maharashtra, India |
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Tel. No.: |
91-22-40327900/ 28382166/ 28370419/ 28216343 |
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Fax No.: |
91-22-28382165 |
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E-Mail : |
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Website : |
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Area : |
468 sq.mt (Owned) |
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Factory : |
268, GIDC Umergaon Valsad, District Gujarat, India |
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Tel. No.: |
91-256-320035 |
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Area : |
Owned |
DIRECTORS
|
Name : |
Mr. Jitendrad Singh Sethi |
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Designation : |
Director |
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Address : |
Lakshdeep Apartments, 2nd Floor, 5th Floor, JVPD
Scheme, Mumbai-400049, Maharashtra, India |
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Name : |
Mrs. Loveleen Kaur Sethi |
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Designation : |
Director |
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Address : |
Flat No. 1, Mistry Manok, 62A, Neapensea Road, Mumbai-400060, Maharashtra,
India |
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Date of Birth/Age : |
24.04.1935 |
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Date of Appointment : |
02.04.1987 |
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Name : |
Mrs. Guvneet Kaur Sethi |
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Designation : |
Director |
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Address : |
Lakshdeep 2nd Floor, 5th Road, JVPD Scheme,
Mumbai-400049, Maharashtra, India |
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Date of Birth/Age : |
04.03.1963 |
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Date of Appointment : |
02.04.1987 |
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Name : |
Mr. Champak Lal Shah |
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Designation : |
Director |
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Address : |
Lakshdeep 2nd Floor, 5th Road, JVPD Scheme,
Mumbai-400049, Maharashtra, India |
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Date of Birth/Age : |
31.03.1954 |
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Date of Appointment : |
01.11.1995 |
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Name : |
Mr. Ashok Datla Raju |
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Designation : |
Director |
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Address : |
5-6 Abhijeet Apartment, P/165 Sher-E Punjab Society, Mahakali Caves Road,
Mumbai-400093, Maharashtra, India |
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Date of Birth/Age : |
06.01.1951 |
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Date of Appointment : |
01.07.2002 |
KEY EXECUTIVES
|
Name : |
Mr. C Ravindra Nair |
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Designation : |
Senior Accountant |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
|
Names of Shareholders |
|
No. of Shares |
|
Loveleen Kaur Sethi |
|
272500 |
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Jagjit Singh Suri |
|
70 |
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Guvneet Kaur Sethi |
|
27390 |
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Namit Mahendra Tolat |
|
10 |
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Jayant Champaklala Shah |
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10 |
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Somayaidil Kateshwar Malladiven |
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10 |
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Jatin Chandrakant Pathak |
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10 |
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Total |
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300000 |
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List of Allottees |
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No. of Shares Allotted |
|
J S Sethi |
|
71525 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Readymade Garments |
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Exports : |
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Countries : |
USA and Kenya |
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Imports : |
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Countries : |
USA |
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Terms : |
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Selling : |
Advance |
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Purchasing : |
Credit (Depends) |
GENERAL
INFORMATION
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Customers : |
Wholesalers |
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No. of Employees : |
210 ( Office 10, Factory 200) (including Contract Workers) |
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Bankers : |
Canara Bank, Girgaon (Fort) |
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Facilities : |
Packing Credit Rs. 30.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Thanawala and Company Chartered Accountant |
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Address : |
505, Abhay Steel House, 5th Floor, 22, Baroda Street, Iron
Market, Mumbai-400009, Maharashtra, India |
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Associates/Subsidiaries : |
M R D Exparts Private Limited Address: Ground Floor C-5, Wecl Opposite Seepz, Andheri (East),
Mumbai-400093, Maharashtra, India Line of Business: Manufacturer of Garments |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 100/- each |
Rs.100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
371525 |
Equity Shares |
Rs. 100/-
each |
Rs.37.153
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 |
37.153 |
30.000 |
30.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
74.565 |
55.786 |
48.951 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
111.718 |
85.786 |
78.951 |
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LOAN FUNDS |
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1] Secured Loans |
29.337 |
31.473 |
9.517 |
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2] Unsecured Loans |
0.625 |
0.325 |
0.325 |
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TOTAL BORROWING |
29.962 |
31.798 |
9.842 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
141.680 |
117.584 |
88.793 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
78.487 |
75.663 |
27.787 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
6.955 |
6.512 |
8.755 |
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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 |
39.549
|
9.139 |
11.378 |
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Sundry Debtors |
2.170
|
1.509 |
11.206 |
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Cash & Bank Balances |
1.536
|
3.072 |
4.032 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
67.194
|
63.897 |
50.396 |
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Total
Current Assets |
110.449
|
77.617 |
77.012 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
49.761
|
38.708 |
23.261 |
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Provisions |
4.450
|
3.500 |
1.500 |
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Total
Current Liabilities |
54.211
|
42.208 |
24.761 |
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Net Current Assets |
56.238
|
35.409 |
52.251 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
141.680 |
117.584 |
88.793 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
141.852 |
125.919 |
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Other Income |
|
8.024 |
15.966 |
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Total Income |
|
149.876 |
141.885 |
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Profit/(Loss) Before Tax |
|
10.297 |
10.159 |
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Provision for Taxation |
|
1.184 |
2.880 |
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Profit/(Loss) After Tax |
|
9.113 |
7.279 |
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Earnings in Foreign Currency : |
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Export Turnover |
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90.123 |
117.932 |
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Expenditures : |
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Raw Material Consumed |
|
100.457 |
84.065 |
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Salaries, Wages, Bonus, etc. |
|
4.814 |
7.195 |
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Managerial Remuneration |
|
0.420 |
0.780 |
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Payment to Auditors |
|
0.125 |
0.056 |
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Interest |
|
2.107 |
1.029 |
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Insurance Expenses |
|
0.285 |
0.144 |
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Power & Fuel |
|
1.357 |
1.706 |
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Depreciation & Amortization |
|
7.366 |
2.928 |
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Other Expenditure |
|
22.648 |
33.823 |
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Total Expenditure |
|
139.579 |
131.726 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
6.08
|
5.13 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
7.26
|
8.06 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.45
|
6.62 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.12 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.75
|
0.86 |
0.44 |
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Current Ratio (Current Asset/Current Liability) |
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2.04
|
1.84 |
3.11 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
- Tespart
Syndicate, Mumbai
- Sarja
International, Mumbai
Bankers Charges
Report as per Registry
|
Name of the company |
LEENA DENIM LIMITED |
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Presented By |
Canara Bank |
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1) Date and description of instrument creating the change |
Deed of Hypothecation
Re: Machinery dated 25.11.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 14.400
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 |
The borrower
hereby Hypothecation all its Plant and Machinery Store at Plot No. 268, 270,
271 admeasuring 15941 sq. mtrs situated C GIDC Industrial Estate, Umbergoan,
District Valsad, Gujarat, India |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 10.75%
p.a. compounded quarterly |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Girgaon
Branch, Mumbai |
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6) Date and brief description of instrument modifying the charge |
Nil |
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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. |
Nil |
AS PER WEBSTIE:
Profile:
They would like to introduce themselves as one of the fastest
growing manufacturers and exporters of Ready-made garments and T-shirts from India
as well as Kenya. They have been in this trade since 1976 exporting the
products to various departmental stores, Wholesalers and Importers in the
United States of America. The product range consists of both Woven as
well as Knitted Garments for Men's, Ladies and Children's catering to various
stores in United States of America such as :
"J.C.PENNY, K-MART, WALMART, TARGET, MAY CO, WETSEAL, LORD
and TAYLOR, CHARMING SHOPPE, PROMINENT APPARELS, VANITY FAIR, CATO and BLOOMING
DALES."
The Corporate office is in Mumbai where they have specialized and well
trained personnel in the Merchandising and Sampling Department. This office
takes care of all the requirement of the Mumbai, Chennai, and overseas
factories.
The Kenya factory is Rated and Approved for the Production of J.C.Penney,
WalMart, KMart, Vanity Fair and Tops Ville.
Infra
The present infrastructure has its Corporate / Merchandising office at
Mumbai, Manufacturing Units at Chennai (Tamil Nadu) and Mombasa (Kenya). All
these units are well equipped with modern machinery and well trained staff.
Products:
The product range consists of both Woven as well as Knitted Garments for
Men's, Ladies and Children's. They manufacture Shirts, T-Shirts, Bermudas,
Trousers, 5 Pocket Jeans, Zip off Pants, Cargo Pants and Shorts, Night
Wear, Tops, Blouses, Camisoles, Skirts and any other style as required by the
buyer.
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.46.34 |
|
UK Pound |
1 |
Rs.82.96 |
|
Euro |
1 |
Rs.65.82 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|