MIRA
INFORM REPORT
|
Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
SARA TEXTILES LIMITED |
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Registered
Office : |
A-31, Hauz Khas, New Delhi-110016 |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
26.12.2003 |
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Com. Reg. No.: |
55-123708 |
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CIN No.: [Company Identification
No.] |
U18101DL2003PLC123708 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELS21005F |
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|
Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturers of Towels, Bathrobe, Beach Towels etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1200000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However trade relations are reported as fair.
Business is active. Payments are reported to be slow but correct. The company can be considered for small business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management non co-operative.
LOCATIONS
|
Registered Office : |
A-31, Hauz Khas, New Delhi-110016, |
|
Tel. No.: |
91-11-26851340/ 26517134/ 26517138 |
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Fax No.: |
91-11-26517127 |
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E-Mail : |
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Website : |
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Factory : |
Sara House, B-8, Sector 4, Noida, |
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Tel. No.: |
91-120-4667272 |
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Fax No.: |
91-120-4667299 |
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E-Mail : |
DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Devinder Pal Singh |
|
Designation : |
Director |
|
Address : |
S-99, |
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Date of Birth/Age : |
07.10.1952 |
|
Date of Appointment : |
26.12.2003 |
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|
Name : |
Mrs. Deepti Singh |
|
Designation : |
Managing Director |
|
Address : |
S-99, |
|
Date of Birth/Age : |
13.10.1978 |
|
Date of Appointment : |
26.12.2003 |
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|
|
|
Name : |
Mr. Shyam Mohan Dwivedi |
|
Designation : |
Whole Time Director |
|
Address : |
I-4, 1st Floor, Jangpura-B, New Delhi-110014, |
|
Date of Birth/Age : |
04.12.1966 |
|
Date of Appointment : |
26.12.2003 |
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|
Name : |
Mr. Satnam Arora |
|
Designation : |
Director |
|
Address : |
Satnam Farm 248, Village Saidulajaib, Westend Marg, Mehrauli, New
Delhi-110030, |
|
Date of Birth/Age : |
23.01.1949 |
|
Date of Appointment : |
30.08.2005 |
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|
Name : |
Mr. Surender Lal Kapoor |
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Designation : |
Director |
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Address : |
161-A, |
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Date of Birth/Age : |
07.03.1937 |
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Date of Appointment : |
30.08.2005 |
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Date of Ceasing: |
27.03.2010 |
KEY EXECUTIVES
|
Name : |
Ms. Poonam Gupta |
|
Designation : |
Company Secretary |
|
Address : |
Flat No. 98, Block- JG-II, Vikas Puri, New Delhi-110018, |
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Date of Birth/Age : |
16.10.1982 |
|
Date of Appointment : |
01.07.2010 |
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Name : |
Mr. Ravi Gupta |
|
Designation : |
Company Secretary |
|
Address : |
C-5/91, Yamuna Vihar, Delhi-110053, |
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Date of Birth/Age : |
08.04.1978 |
|
Date of Appointment : |
10.10.2006 |
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Date of Ceasing: |
15.07.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Deepti Singh |
|
810000 |
|
Abha Singh |
|
1100000 |
|
Deveinder Pal Singh |
|
1250000 |
|
Shyam Mohan Dwivedi |
|
252500 |
|
Chandan Singh |
|
15000 |
|
Indra Banga |
|
6769000 |
|
Tushar Singh |
|
5094402 |
|
Sara International Limited, |
|
9250000 |
|
Iskandar Sultan Khwaja, UAE |
|
1095381 |
|
Total |
|
25636283 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2010
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
50.55 |
|
Bodies corporate |
36.08 |
|
Directors or relatives of Directors |
13.37 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Towels, Bathrobe, Beach Towels etc. |
||||
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Products : |
·
Towels ·
Home Furnishing ·
Yarns ·
Institutional Towels |
PRODUCTION STATUS AS ON 31.03.2010
|
Installed Capacity |
3888.00 MT |
|
|
|
|
Production |
2398.50 MT |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged by the Management. |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
T R Chadha and Company Chartered Accountant |
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Address : |
B-30, |
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Enterprises over which significant influence exists : |
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Group Companies: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs. 10/- each |
Rs. 400.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25636283 |
Equity Shares |
Rs. 10/-
each |
Rs. 256.363
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
256.363 |
256.363 |
248.607 |
|
|
2] Share Application Money |
0.000 |
0.000 |
75.500 |
|
|
3] Reserves & Surplus |
58.870 |
41.564 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
[7.130] |
|
|
NETWORTH |
315.233 |
297.927 |
316.977 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
581.673 |
546.482 |
548.186 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
581.673 |
546.482 |
548.186 |
|
|
DEFERRED TAX LIABILITIES |
15.125 |
3.191 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
912.031 |
847.600 |
865.163 |
|
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|
|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
565.568 |
581.417 |
588.419 |
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|
Capital work-in-progress |
42.418 |
29.832 |
6.778 |
|
|
|
|
|
|
|
|
INVESTMENT |
3.685 |
0.125 |
0.125 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
188.099
|
109.838 |
144.141 |
|
|
Sundry Debtors |
160.119
|
174.261 |
108.654 |
|
|
Cash & Bank Balances |
9.760
|
4.094 |
8.044 |
|
|
Other Current Assets |
0.797
|
0.500 |
0.351 |
|
|
Loans & Advances |
33.752
|
36.968 |
42.288 |
|
Total
Current Assets |
392.527
|
325.661 |
303.478 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
23.460
|
12.881 |
13.284 |
|
|
Other Current Liabilities |
59.338
|
62.937 |
14.448 |
|
|
Provisions |
9.369
|
13.617 |
5.905 |
|
Total
Current Liabilities |
92.167
|
89.435 |
33.637 |
|
|
Net Current Assets |
300.360
|
236.226 |
269.841 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
912.031 |
847.600 |
865.163 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
878.626 |
841.886 |
607.137 |
|
|
|
Interest Earned |
0.402 |
0.300 |
0.227 |
|
|
|
Other Income |
63.739 |
71.021 |
49.279 |
|
|
|
TOTAL (A) |
942.767 |
913.207 |
656.643 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Finished Goods |
212.633 |
120.963 |
111.514 |
|
|
|
Material Consumed |
444.403 |
415.756 |
357.738 |
|
|
|
Manufacturing expenses |
111.823 |
110.328 |
79.807 |
|
|
|
Employees remuneration and benefits |
29.037 |
15.830 |
15.795 |
|
|
|
Administrative and other expenses |
19.910 |
10.378 |
6.900 |
|
|
|
Selling and Distribution Expenses |
57.061 |
56.988 |
38.993 |
|
|
|
Increase/ Decrease in stock |
[57.465] |
26.408 |
[43.591] |
|
|
|
Prior Period Expenses/ Income |
[0.472] |
0.000 |
1.097 |
|
|
|
TOTAL (B) |
816.930 |
756.651 |
568.253 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
125.837 |
156.556 |
88.390 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
44.594 |
54.253 |
38.851 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
81.243 |
102.303 |
49.539 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
44.378 |
43.068 |
23.799 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
36.865 |
59.235 |
25.740 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
19.559 |
10.541 |
4.716 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
17.306 |
48.694 |
21.024 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
41.564 |
[7.130] |
[28.154] |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
58.870 |
41.564 |
[7.130] |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
668.249 |
752.549 |
NA |
|
|
TOTAL EARNINGS |
668.249 |
752.549 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
2.204 |
1.230 |
NA |
|
|
|
Capital Goods |
9.358 |
30.733 |
NA |
|
|
TOTAL IMPORTS |
11.562 |
31.963 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
0.68 |
1.96 |
1.02 |
|
|
|
Diluted |
0.68 |
1.64 |
0.84 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.84
|
5.33 |
3.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.20
|
7.04 |
4.24 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.85
|
6.53 |
2.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.20 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.14
|
2.13 |
1.84 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.26
|
3.64 |
9.02 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors – Micro and
Small |
-- |
-- |
-- |
|
Sundry Creditors – Others |
23.460 |
12.881 |
13.284 |
|
Total |
23.460 |
12.881 |
13.284 |
Contingent Liabilities not provided for :
|
Particulars |
31.03.2010 Rs. In Millions |
|
Guarantee issued by the banks for which
counter guarantee have been given by the company |
24.122 |
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U18101DL2003PLC123708 |
|
Name of the
company |
SARA TEXTILES LIMITED |
|
Address of the
registered office or of the principal place of business in |
A-31, Hauz Khas, New Delhi-110016, |
|
This form is for |
Creation of
Charge |
|
Type of charge |
Immovable Property Book Debts Movable Property Others |
|
Particular of
charge holder |
Punjab National Bank, Nehru Enclave, Opposite Nehru Place, New
Delhi-110019, |
|
Nature of
instrument creating charge |
Joint Deed
hypothecation, working capital consortium agreement and agreement of
hypothecation of movable fixed assets |
|
Date of
instrument Creating the charge |
22.11.2010 |
|
Amount secured by
the charge |
Rs. 465.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest As per Sanction
Terms Terms of
Repayment On Demand Margin The Current
assets coverage shall not be less than 1.33 times Extent and
Operation of the charge The charge
operates as security as pari passu charge amongst consortium members Others Above is to
secure total fund and non fund based
limits aggregating Rs. 465.000 Millions |
Fixed Assets:
·
Building
·
Land
·
Furniture and Fixtures
·
Electric Installation
·
Office Equipments
·
Plant and Machinery
·
Vehicles
·
Computers
AS PER WEBSITE
Profile:
Sara Textiles is textile manufacturing and trading arm of the Sara
Group, They have set up a state of art composite terry toweling unit at
Nalagarh, HP besid es being involved in the export of textiles and cotton yarn.
The company enjoys a commanding presence and substantial market share in
The manufacturing facility for towels and the presence at all the main
production hubs in
The company’s foundation is built on the cornerstones of professional
management, state of the art infrastructure, excellent quality control systems
and foolproof logistics management to ensure a seamless supply chain from the
raw material to the retail shelf.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
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 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
29 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.