MIRA
INFORM REPORT
|
Report Date : |
19.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
J M TEXTILES LIMITED |
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Registered Office : |
401, Arcasianariman Point, Mumbai-400021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.02.1979 |
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Com. Reg. No.: |
11-20978 |
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CIN No.: [Company
Identification No.] |
U17120MH1979PLC020978 |
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Legal Form : |
A closely held public
limited liability company. |
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Line of Business : |
Manufacturers and
Traders of Polyester Yarns, Poly Vinyl Alcohol, Cloths, Polyester oriented /
Filament yarns and Polyester Chips. |
RATING &
COMMENTS
|
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 240000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average
45 days |
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Litigation : |
Clear |
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Comments : |
Subject is an old
and established company having moderate track. Company’s profitability is
under severe pressure. It has some accumulated losses. Payments are reported
as slow by average 45 days. The company can
be considered for small business dealings at usual trade terms and conditions
with slight caution initially. |
LOCATIONS
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Registered Office : |
401, Arcasianariman Point, Mumbai-400021, Maharashtra, India |
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Tel. No.: |
91-22-22834838 |
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Fax No.: |
91-22-22851086 |
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E-Mail : |
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Corporate Office : |
801, Tulsiani
Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel. No.: |
91-22-22834838 /
22835002 |
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Fax No.: |
91-22-22851085 |
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E-Mail : |
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Factory : |
Plot No. J – 13,
MIDC Industrial Area, Tarapur, Thane |
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Tel. No.: |
91-2525 -272616 |
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Godown: |
Greentex Clearing House, Godown No. B1 and B2, Gosrani Compound,
Bhiwahndi, Thane, Maharashtra, India |
DIRECTORS
|
Name : |
Mr. Mohanlal R.
Jatia |
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Designation : |
Director |
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Address : |
81, Jatia Sea Face,
Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
01.05.1940 |
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Date of Appointment : |
21.02.1979 |
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Name : |
Mr. Sanjay M.
Jatia |
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Designation : |
Director |
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Address : |
81, Jatia Sea Face,
Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
21.07.1967 |
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Date of Appointment : |
21.12.1987 |
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Name : |
Mr. Sudhir M.
Jatia |
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Designation : |
Director |
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Address : |
81, Jatia Sea Face,
Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
21.03.1969 |
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Date of Appointment : |
28.04.1988 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
|
Names of Shareholders |
|
No. of Shares |
|
Satyanarayan R.
Jatia |
|
3000 |
|
Ramgopal
investment and Trading Company Private Limited |
|
149600 |
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Mohanlal R. Jatia
|
|
200 |
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Sanjay M. Jatia |
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300 |
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Sudhir M. Jatia |
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300 |
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Sharad S. Jatia |
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100 |
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Sanjay M. Jatia |
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30400 |
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Siddharth M.
Jatia |
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100 |
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Ramgopal
Synthetics Limited |
|
46000 |
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Ramgopal Textiles
Limited |
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120000 |
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Nostalgia Invest
Private Limited |
|
150000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
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Bodies corporate (not mentioned above) |
|
93.12 |
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Directors or relatives of directors |
|
6.88 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Traders of Polyester Yarns, Poly Vinyl Alcohol, Cloths, Polyester oriented /
Filament yarns and Polyester Chips. |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Standard
Chartered Bank, 23-25, MG Road, Mumbai – 400001, Maharashtra, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Lodha and Company
Chartered
Accountants |
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Address : |
6, Karim Chambers,
40, Ambalal Doshi Marg, Mumbai - 400023 |
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Name : |
Rungta and Associates Chartered Accountant |
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Address : |
504, Rainbow Chambers, S V Road, Kandivali (West), Mumbai-400067,
Maharashtra, India |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
500000 |
Equity Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
||
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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50.000 |
50.000 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
6.540 |
6.540 |
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4] (Accumulated Losses) |
|
[6.928] |
[10.336] |
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NETWORTH |
|
49.612 |
46.204 |
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LOAN FUNDS |
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1] Secured Loans |
|
19.791 |
8.063 |
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2] Unsecured Loans |
|
23.053 |
53.853 |
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TOTAL BORROWING |
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42.844 |
61.916 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
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92.456 |
108.120 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.062 |
0.065 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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10.378 |
0.250 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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48.283
|
50.592 |
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Sundry Debtors |
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284.496
|
98.999 |
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Cash & Bank Balances |
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15.621
|
9.210 |
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Other Current Assets |
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0.000
|
0.000 |
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Loans & Advances |
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79.683
|
80.961 |
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Total
Current Assets |
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428.083
|
239.762 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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343.832
|
130.300 |
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Provisions |
|
2.235
|
1.657 |
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Total
Current Liabilities |
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346.067
|
131.957 |
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Net Current Assets |
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82.016
|
107.805 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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92.456 |
108.120 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
1007.026 |
538.912 |
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Other Income |
|
8.674 |
4.775 |
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Total Income |
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1015.700 |
543.687 |
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Profit/(Loss) Before Tax |
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5.139 |
3.053 |
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Provision for Taxation |
|
1.730 |
1.258 |
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Profit/(Loss) After Tax |
|
3.409 |
1.795 |
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Expenditures : |
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Purchases made for re-sale |
|
980.788 |
503.143 |
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Increase/(Decrease) in Finished Goods |
|
2.307 |
15.145 |
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Salaries, Wages, Bonus, etc. |
|
1.117 |
0.957 |
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Managerial Remuneration |
|
0.315 |
0.215 |
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Payment to Auditors |
|
0.030 |
0.034 |
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Interest |
|
4.437 |
4.263 |
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Insurance Expenses |
|
0.362 |
0.247 |
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Depreciation & Amortization |
|
0.003 |
0.001 |
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Other Expenditure |
|
21.202 |
16.629 |
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Total Expenditure |
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1010.561 |
540.634 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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0.34 |
0.33 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.51 |
0.57 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.20 |
1.27 |
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Return on Investment (ROI) (PBT/Networth) |
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0.10 |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
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7.84 |
4.19 |
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Current Ratio (Current Asset/Current Liability) |
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1.24 |
1.82 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
J M TEXTILES LIMITED |
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Presented By |
Standard Chartered Bank 23-25, MG Road, Mumbai – 400001 |
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1) Date and description of instrument creating the change |
The borrower has by declaration created the hypothecation of
stock and book debts in favor of the standard chartered bank on 24.01.2005.
the certified copy of the agreement of hypothecation of stock and book debts is enclosed. |
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2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 60.000 millions |
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3) Short particular of the property charged. If the
property acquired is subject to charge, date of the acquired of the property
should be given |
Hypothecation of All the stock in trade both present and future consisting or raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever, being movable properties nor or at any time hereafter belonging to the borrower or at the borrower disposal and now or any time and from time to time hereafter stored or be stored or brought into0 or upon or in course of transit to the borrowers factory or premises or at any other place whatsoever and whosesoever in the borrowers possession or occupation or at any other premises or place.
All the present and future book debts, outstanding moneys
receivable claims and bills which are now due the owing or which may at any
time hereafter during the continuance of this security become due and owing
to the borrower in the course of its business by any person, firm company or
body corporate or by the government department or office or any Municipal or
local or public or semi government body or authority or any body corporate or
undertaking or project wharever in the public sector. |
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4) Gist of the terms and conditions and extent and
operation of the charge. |
Security for letter of credit and overdraft facility
granted to the company and charge operate as first and paramount charge in
favour of the bank as security for all dues under the above facility. |
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5) Name and Address and description of the person entitled
to the charge. |
Standard Chartered Bank 23-25, MG Road, Mumbai – 400001 |
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6) Date and brief
description of instrument modifying the charge |
Supplementary
Hypothecation Agreement of Stocks and Book Debts dated January 25, 2006 |
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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. |
The Bank having at the request of the borrower agreed to extend/ enhance the limit/ amount of the within mentioned accommodation / credit facility/ ies granted by the bank to the borrower by way of :
From Rs. 60.000 Millions to Rs. 85.000 Millions in the aggregate, the Borrower hereby agrees, undertake and confirms to the Bank that the security of First hypothecation charge created by the borrower in favour of the Bank over the said Hypohtecated Assets, shall from the date hereof, constitute security to the Bank not only for the said credit facility BUT also fo the enhanced credit facility/ies of Rs. 25.000 Millions B Save and except as enlarged and modified by these
presets, the terms, conditions and provisions of the said principal Agreement
of Hypothecation as amended by the said Supplemental Agreement/s of
Hypothecation shall remain unchanged AND the Borrower hereby specifically
confirm in all other respect the provisions therof. |
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This form is for |
Modification of
charge |
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Charge
identification number of the modified
|
90241306 |
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Corporate
identity number of the company |
U17120MH1979PLC020978 |
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Name of the
company |
J M TEXTILES LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
401, Arcasianariman Point, Mumbai-400021, Maharashtra, India |
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Type of charge |
Book Debts Movable Property Floating Charge |
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Particular of
charge holder |
Standard Chartered Bank 23-25, MG Road, Mumbai – 400001 |
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Nature of
description of the instrument creating or modifying the charge |
Hypothecation
Agreement (Supplemental) |
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Date of
instrument Creating the charge |
26.09.2007 |
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Amount secured by
the charge |
Rs. 180.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As Agreed by and with
the Bank Terms of
Repayment As agreed by and
with the Bank Margin As applicable, if
any Extent and
Operation of the charge The Bank is
having first charge on the security offered by the company. |
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Short particulars
of the property charged |
Hypothecation on
:
|
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Date of latest
modification prior to the present modification |
11.02.2006 |
|
Particulars of
the present modification |
The charge amount
enhanced form Rs. 125.000 Millions to Rs. 180.000 Millions against the
security fo
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CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.71 |
|
UK Pound |
1 |
Rs.85.12 |
|
Euro |
1 |
Rs.66.98 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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 |
|