MIRA INFORM
REPORT
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Report Date : |
29.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
CLASSIC STRIPS LIMITED |
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Registered Office : |
164, Senapti Bapat Marg, Matunga, Mumbai – 400016, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
30.09.1987 |
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Com. Reg. No.: |
11-44849 |
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CIN No.: [Company
Identification No.] |
U74999MH1987PLC044849 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC1057G |
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PAN No.: [Permanent
Account No.] |
AAACC5076F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of 2-wheeler Graphic worldwide |
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 2000000 |
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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 in its field.
Trade relations are faire. Business is active. General financial position is good.
Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
164, Senapti Bapat Marg, Matunga, Mumbai – 400016, Maharashtra, India |
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Tel. No.: |
91-22-24303826/
24303853/ 8688/ 24328463/ 64 / 24211708/ 24365303/ 24389550 |
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Fax No.: |
91-22-24308688/ 24303826 |
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E-Mail : |
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Website : |
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Corporate Office : |
76/79 Makwana Lane, Takpada Off Andheri Kurla Road, Marol Andheri (East) , Mumbai 400059, Maharashtra, India |
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Tel. No.: |
91-22-66793500 |
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Fax No.: |
91-22-66793600 |
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Factory : |
Located at: Vasai, District
Thane, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Kishore M. Musale |
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Designation : |
Chairman cum Managing Director |
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Address : |
601, 6th Floor, Kubelisque, Dr. Ambedkar Road, Pali Hill
Bandra (West), Mumbai – 400050, Maharashtra, India |
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Date of Birth/Age : |
15.02.1954 |
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Date of Appointment : |
30.09.1987 |
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Name : |
Mrs. Chhaya K. Musale |
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Designation : |
Director |
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Address : |
601, 6th Floor, Kubelisque, Dr. Ambedkar Road, Pali Hill
Bandra (West), Mumbai – 400050, Maharashtra, India |
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Date of Appointment : |
30.09.1987 |
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Name : |
Mr. Vishwanath M. Arekar |
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Designation : |
Director |
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Address : |
255 Suresh BL. Ram Maruti Road, Dadar, Mumbai – 400028, Maharashtra,
India |
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Date of Birth/Age : |
23.08.1922 |
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Date of Appointment : |
01.07.2008 |
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Name : |
Mr. Govind G. Desai |
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Designation : |
Director |
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Address : |
202 Kedar Apartments, Jamshedji Marg, Mahim, Mumbai – 400016,
Maharashtra, India |
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Date of Birth/Age : |
04.06.1933 |
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Date of Appointment : |
01.01.1997 |
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Name : |
Mr. Vivek Rai Gupta |
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Designation : |
Additional Director |
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Address : |
Taj Wellington Mews, 33 Nathalal Parekh Marg, Mumbai – 400001,
Maharashtra, India |
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Date of Birth/Age : |
27.04.1956 |
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Date of Appointment : |
09.06.2008 |
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Name : |
Mr. Ramaswamy P. Subramaniam |
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Designation : |
Additional Director |
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Address : |
131 East, 83rd Street, Apartment No.2C, Newyork 10028 |
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Date of Birth/Age : |
30.09.1966 |
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Date of Appointment : |
09.06.2008 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 20.04.2006)
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Names of Shareholders |
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No. of Shares |
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Kishore M. Musale |
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7965000 |
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Chhaya K. Musale |
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2475000 |
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Salil K. Musale |
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750000 |
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Sameer K. Musale |
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750000 |
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Total |
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11940000 |
(As on 31.03.2008)
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Category |
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Percentage
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Bodies Corporate |
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2.51 |
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Directors or relatives of directors |
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97.49 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of 2-wheeler Graphic worldwide |
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Products : |
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Brand Name : |
“Autographix” |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1600 |
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Bankers : |
Industrial
Finance Branch, 1st Floor, Lakhraj Bhavan, Sakivihar Road,
Sakinaka Andheri (East), Mumbai – 400072, Maharashtra, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Vilas K. Shah and Company Chartered Accountant |
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Address : |
Dol-Bin-Shir, 4th Floor, 69/71, Janmabhoomi
Marg, Fort, Mumbai – 400023, India |
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Tel No.: |
91-22-2873033/ 2835338 |
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Fax No.: |
91-22-2835338 |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India |
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Associates/Subsidiaries : |
Musale Investments Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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11940000 |
Equity Shares |
Rs.10/- each |
Rs.119.400
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
119.400 |
119.400 |
119.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
286.462 |
91.938 |
159.871 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
405.862 |
211.338 |
279.271 |
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LOAN FUNDS |
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1] Secured Loans |
736.240 |
759.365 |
792.869 |
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2] Unsecured Loans |
142.825 |
245.359 |
245.701 |
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TOTAL BORROWING |
879.065 |
1004.724 |
1038.570 |
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DEFERRED TAX LIABILITIES |
0.000 |
21.647 |
18.174 |
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TOTAL |
1284.927 |
1237.709 |
1336.015 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
587.978 |
829.662 |
999.900 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.100 |
0.050 |
0.050 |
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DEFERREX TAX ASSETS |
3.651 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
146.786
|
180.210 |
145.334 |
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Sundry Debtors |
562.302
|
383.216 |
231.692 |
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Cash & Bank Balances |
50.736
|
28.211 |
17.540 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
158.178
|
88.141 |
62.340 |
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Total
Current Assets |
918.002
|
679.778 |
456.906 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
156.020
|
147.593 |
100.023 |
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Provisions |
76.490
|
125.778 |
20.818 |
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Total
Current Liabilities |
232.510
|
273.371 |
120.841 |
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Net Current Assets |
685.492
|
406.407 |
336.065 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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Capital In Advance |
7.706 |
1.590 |
0.000 |
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TOTAL |
1284.927 |
1237.709 |
1336.015 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
|
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Sales Turnover |
|
1840.157 |
1633.426 |
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Other Income |
|
69.181 |
23.182 |
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Total Income |
|
1909.338 |
1656.608 |
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Profit/(Loss) Before Tax |
|
601.464 |
376.227 |
|
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Provision for Taxation |
|
197.402 |
134.491 |
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Profit/(Loss) After Tax |
|
404.062 |
241.736 |
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Expenditures : |
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Raw Material Consumed |
|
630.141 |
689.493 |
|
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Purchases made for re-sale |
|
16.225 |
10.592 |
|
|
Increase/(Decrease) in Finished Goods |
|
22.340 |
(16.140) |
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Salaries, Wages, Bonus, etc. |
|
155.715 |
142.330 |
|
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Payment to Auditors |
|
1.616 |
1.600 |
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Interest |
|
84.250 |
90.832 |
|
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Insurance Expenses |
|
4.192 |
8.446 |
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Power & Fuel |
|
38.168 |
35.294 |
|
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Depreciation & Amortization |
|
111.954 |
106.910 |
|
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Other Expenditure |
|
243.274 |
211.024 |
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Total Expenditure |
|
1307.875 |
1280.381 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
21.16
|
14.59 |
NA |
|
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|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
32.69
|
23.03 |
NA |
|
|
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|
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Return on Total Assets (PBT/Total Assets} |
(%) |
39.94
|
24.92 |
NA |
|
|
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Return on Investment (ROI) (PBT/Networth) |
|
1.48
|
1.78 |
NA |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
2.74
|
6.05 |
4.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.95
|
2.49 |
3.78 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number of the company |
U74999MH1987PLC044849 |
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Name of the
company |
CLASSIC STRIPS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
164, Senapti Bapat Marg, Matunga, Mumbai – 400016, Maharashtra, India |
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This form is for |
Creation of charge |
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Type of charge |
Immovable
Property |
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Particular of
charge holder |
State Bank of
India Industrial
Finance Branch, 1st Floor, Lakhraj Bhavan, Sakivihar Road,
Sakinaka Andheri (East), Mumbai – 400072, Maharashtra, India |
|
Nature of
instrument creating charge |
Supplementary
Recording Letter Evidencing Deposit of Title Deeds |
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Date of
instrument Creating the charge |
30.03.2007 |
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Amount secured by
the charge |
Rs.340.000
Millions |
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Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of
Interests: Cash Credit :
1.25% below State Bank Advance Rate (SBAR) minimum 11.50% p.a. at monthly
rest. Term Loan: (O/S)
1.50% below (SBMTLR) effective rate 8.75% p.a. at monthly rest. Terms of
Repayment: Term Loan: The
loan is repaid in 60 monthly installments of Rs.5.000 Millions starting from
April 06. Margin: Cash Credit: Raw
Materials 25%, SIP 33%, Finished Goods 33%, Book Debts (90 days) 40% Terms Loan: 33% Letter of Credit
: As per RBI directives on margin on import L/C and margin on holding of
imported Raw Material will be adhered to. Extent and
Operation of the charge: Cash Credit till
the loan is repaid Term Loan 5 years |
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Particulars of
the property charged |
First Pari Passu
charge created by way of collateral security on the land and Building at plot
bearing survey no.235 situated at Gokhivare, Taluka Bassein, District Thane And Second charge on
land and Building at plot bearing survey no.76, Hissa No.6 (Pt) CTS No. 610
Marol. |
Fixed Assets:
- Factory building
- Residential flat
- Plant & machinery
- Furniture & fixtures
- Air conditioner
- Electrical installation
- Office equipment
- Computer
- Motor car
- Motor cycle
- Cycle
Website Details:
Profile:
Subject was established in 1987. The Company is in the
business of producing decals which are used in the 2-wheeler and 4-wheeler
industry. With ISO-9001 certification and staff strength of over 300 people,
company has propelled its brand to the forefront of Graphic and Printing
Industry. The Company has a production capacity to produce over 6 million
motorbike decals per annum and is the largest manufacturer of 2-wheeler Graphic
worldwide. The Company also produces Doming Labels and has a production capacity
to produce over 200000 Doming Labels per Shift. The Company has also invested
in the state-of-the-art in-house design studio which caters to the requirement
of the industry and as per customer’s design requirement.
Subject for the second consecutive year has featured in the
survey conducted by the Grow Talent Company in partnership with Economic Times
as the “Great Places to Work”
They were rated 5th in 2007. This is a tribute to their Core Competence which
is their “People”.
Achievements:
Classic Stripes is well known and recommended by
organizations in the 2-wheeler market. Some of its recognitions and awards are:
- Achievement Award 2001 - Presented by Screen Print India in the
year 2001
- OM Operation - Presented by Hero Honda – 2001
- Award of Merit - Presented by the Bombay Masters Printers
Association – 2000
- National Award for Excellence in Printing “Certificate of Merit” -
Presented by the All India Federation of Master Printers – 1999
- Outstanding Indigenisation Performance - Presented by Hero Honda –
1990
- SGIA's 2003 / 2004 / 2005 Environmental Achievement Award
- FESPA 2005 Silver trophy for excellence in Four Colour Printing
- Gold & Silver award for printing in the decal category
Infrastructure:
Company has recently built a state-of-the-art plant on the
outskirts of Mumbai (India) on 40 acres with a factory plot size of 14805 sq.
mtr. The facility has the best equipments for printing and high speed
application film lamination machines which deliver consistently high volume and
quality products. All its raw materials are imported from international
companies.
CORPORATE
SOCIAL RESPONSIBILITIES:
Company has formed a charitable trust for the society’s
welfare and the under privileged. Named after its founder Kishore Musale, this trust
has carried out countless charitable activities and looks to continue its
contributions regularly for the needy.
- EDUCATIONAL ACTIVITIES
The trust provides educational help and utilities to about
25,000 students and 350 schools, in the areas of Vasai, Manor-Palghar and
Thane. It has begun an ideal high school and junior college named Tatyasaheb
Musale Vidyalaya at Ichalkaranji in the Kolhapur District, equipped with
facilities such as a computer and science laboratory and a modern sports
ground. This trust has also provided computers, classrooms, bore wells etc to
mentally retarded and handicapped students in Kolhapur, Ichalkaranji and Thane.
- MEDICAL ACTIVITIES
Medical help is given to the adivasi people, especially
during rainy season. The Trust officers provide hearing aid, spectacles, tonics
etc. to needy students during their timely visits. Also incidental monetary
help is given to heart patients in the urban and rural areas. Medical check up
camps and other general healthcare activity are provided to schoolchildren.
- HOME INDUSTRY/ SMALL SCALE IND. DEVELOPMENT ACTIVITIES
Almost 300 women in Vasai-East and Manor-Palghar adivasi
areas are given awareness and practical training in the making of candles,
papads, agarbattis, detergent powder, liquid soaps and chalk sticks among many
others.
- ENVIRONMENTAL IMPROVEMENTS
The trust also undertakes tree plantations on a large scale.
These activities were initiated from the neighbouring village Pelhar-
Vanavathapada, in Vasai.
- CULTURAL ACTIVITIES
The trust assists institutions in Kolhapur, Ichalkaranji,
Vita, Palus in Sangli district, Pandharpur, Solapur, Sangols, Mhaswad, Kankavli
in Sindhudurg district, Pune and Mumbai in various cultural activities and in
spreading social awareness.
OEM:
Company meets graphic needs with precision and consistency. Its
production plants handle demand and quality at the same time. Bike and car
manufacturers around the world rely on its graphics for their production line.
Company understands the years of efforts that go behind building a brand. Be it
a refrigerator or a bike that takes months to design, it can highlight the
bodyline with diverse graphics.
Company magnifies the beauty of automobiles and white goods in India and abroad
through PU Domings and self-adhesive graphics.
Retail:
Besides developing customized graphic solutions for the
world’s retailers and automobile manufacturers, company has a retailing
operation for the Indian markets. It is an excellent example of a company
different from its competitors.
India has the capability for a strong retail market that generates 10% of the
gross domestic product. With direct customer interaction as the best way to
succeed, Company has come out with a range of packaged graphics for automobiles
and two wheelers.
Compnay has a brand called “Autographix” under which all its products are
marketed. As of today, the Company has four products under the “Autographix”
brand namely –
- Graphics
- Dashboard Trims
- Car Fresheners
- Window Films
Singnages:
The Signage division provides high quality products and services by incorporating the latest technology. It constantly delivers innovative visual solutions from time to time.
This division offers Signages for Petrol gas stations, Auto signs, Showrooms
etc. through in-house design development, proto-typing, manufacturing and
installation expertise.
Four Colour
Printing:
Company undertakes four colour printing jobs with UV & Solvent inks on different substrates such as self adhesive transparent vinyl, opaque vinyl, PVC, polycarbonate, Acrylic, foamboard, frontlit & sub surface printing for backlit applications.
With superior & fully automatic printing machines, it delivers consistency in all print jobs. Backed by an in-house design studio with facilities for colour separation, screen making & developing prototypes, Company has delivered excellent product performances.
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.46.43 |
|
UK Pound |
1 |
Rs.85.38 |
|
Euro |
1 |
Rs.67.95 |
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 |
NO |
|
--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 |
|