MIRA INFORM REPORT

 

 

Report Date :

02.07.2011

 

IDENTIFICATION DETAILS

 

Name :

KENT R O SYSTEMS LIMITED

 

 

Registered Office :

H-35, South Extension, Part – 1, Kidwai Nagar, New Delhi – 110 049

 

 

Country :

India

 

 

Financial as on:

31.03.2010

 

 

Date of Incorporation :

12.04.2007

 

 

Com. Reg. No.:

55-161952

 

 

Capital Investment / Paid-up Capital :

Rs.9.857 Millions

 

 

CIN No.:

[Company Identification No.]

U41000DL2007PLC161952

 

 

Legal Form :

A closely held public limited liability company

 

 

Line of Business :

Manufacturer, Exporter, Importer and Trader of R. O. Water Purifiers for Household and Industrial Applications

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (63)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 2533000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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 – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

LOCATIONS

 

Registered Office :

H-35, South Extension, Part – 1, Kidwai Nagar, New Delhi – 110 049, India

Tel. No.:

91-11-24690574/24629285 / 26856421 / 26855884

Fax No.:

91-11-24692529 / 26567540

E-Mail :

clc@snr.net.in

export@kent.co.in

snr-clc@snr.net.in

Website :

http://www.kent.co.in

Area :

4000 sq. ft.  each Floor [Owned]

 

 

Head Office :

A –2, Sector 59, Noida, Uttar Pradesh, India

Tel. No.:

91-120-2423207 / 2423289 / 2423290

Fax No.:

91-120-2423654

E-Mail :

sales@kent.co.in

Area :

40000 sq. ft. [Owned]

 

 

Branches Office:

 

Tel:

Area:

 

Branches Office:

 

Tel:

Area :

 

Branches Office:

 

Tel.

Area :

 

Branches Office:

Tel.

Area :

 

GF-10, Ansal Majestic Tower, Vikas Puri Community Centre, New Delhi – 110 018,India

91-11-56024560/55154210

900 sq. ft. [Owned]

 

 S – 03, Pankaj Arcade, Plot No. 16, Sector 5, Dwarka, New Delhi – 110 075,India

91-124-30969549/30969668

600 sq. ft. [Owned]

 

Shop No. 17, 1st Floor, DLF Galleria, DLF City, Phase IV, Gurgaon, Haryana ,India

91-124-23096847/23096787

Owned

 

 No. 8, First Floor, Devi Sahay Market, Sector 37, Faridabad, Haryana, India

 91-129-2254985/86

 Owned

 

 

DIRECTORS

As on 24.09.2010 

 

Name :

Mr. Mahesh Gupta

Designation :

Director

Address :

H-35, South Extension – 1, New Delhi – 110049, Delhi, India

Date of Birth/Age :

55 Years

Qualification :

Graduate

Date of appointment:

12.04.2007

 

 

Name :

Mr. Varun Gupta

Designation :

Director

Address :

H-35, South Extension – 1, New Delhi – 110049, Delhi, India

Date of appointment:

12.04.2007

 

 

Name :

Ms. Sunita Gupta

Designation :

Director

Address :

H-35, South Extension – 1, New Delhi – 110049, Delhi, India

Date of appointment:

12.04.2007

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 24.09.2010

 

Names of Shareholders

No. of Shares

Mahesh Gupta

504500

Sunita Gupta

361000

Varun Gupta

118000

Surbhi Gupta

50

M/s S.S.Appliance (India)

2050

Rajinder Mohan Jindal (India)

50

M/s Varun Oilcon Marketing Private Limited (India)

50

Total

985700

 

As on 24.09.2010

 

Equity Share Breakup

Percentage of Holding

Category

 

Bodies corporate

0.22

Directors or relatives of directors

99.78

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter, Importer and Trader of R. O. Water Purifiers for Household and Industrial Applications

 

 

Products :
  • Mineral RO Water Purifier
  • U.V. Purifier
  • Gravity Based Purifier
  • Softener
  • Ozono Purifier
  • Kent Grand+
  • Kent Excell+
  • Kent Pride
  • Kent Elite – I & II
  • Kent Gold
  • Kent Ultra U.V.
  • Kent Water Softener, etc.

Brand Names :

“KENT”

 

 

Agencies Held :

S. S. Engineering, Noida, Uttar Pradesh, India

 

 

Exports :

 

Products :

R. O. Filters

Countries :

South East Asian Countries, Africa and Middle East

 

 

Imports :

 

Products :

Raw Materials and Components

Countries :

Taiwan, USA and Japan

 

 

Terms :

 

Selling :

L/C or Cash

 

 

Purchasing :

L/C, Cash or Credit [60 days]

 

 

PRODUCTION STATUS 31.03.2010

 

Particulars

Unit

Installed Capacity

Actual Production

Water Purifier

Nos

1800000

259984

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers and End Users

 

 

No. of Employees :

Around 1000

 

 

Bankers :

Oriental Bank of Commerce, F-1, CSC, DDA Market, Vasundhra Enclave, Delhi-110095, India

 

 

Facilities :

Secured Loans :

 

As on 31.03.2010

Rs. in Millions

As on 31.03.2009

Rs. in Millions

Cash Credit From Oriental Bank of Commerce

(Against Hypothecation of Inventories and Book Debts)

17.984

25.903

 

 

 

Total

17.984

25.903

 

Unsecured Loans :

As on 31.03.2010

Rs. in Millions

As on 31.03.2009

Rs. in Millions

From Director

0.000

28.114

From Others

0.000

0.000

Total

0.000

28.114

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

SNR And Company

Chartered Accountant

Address :

A-15, Second Floor, Hauz Khas, New Delhi 110016, India

Tel. No.:

91-11-41655801 / 91-11-26855884

Fax No.:

91-11-26567540

E-Mail :

snr@snr.net.in

Website:

www.snr.net.in

 

 

Associates:

 

 

 

Nature of transaction:

 

Name

M/s Kent Appliance

Nature of transaction:

Purchase of Raw Material and Job Work

 

 

Name

M/s S.S.Appliance Private Limited

Nature of transaction:

Rent Paid

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1500000

Equity shares

Rs.10/-each

Rs.15.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

985700

Equity shares

Rs.10/-each

Rs.9.857 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

9.857

9.857

9.857

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

623.440

297.982

89.679

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

633.297

307.839

99.536

LOAN FUNDS

 

 

 

1] Secured Loans

17.984

25.903

30.467

2] Unsecured Loans

0.000

28.114

33.973

TOTAL BORROWING

17.984

54.017

64.440

DEFERRED TAX LIABILITIES

5.310

2.286

1.102

 

 

 

 

TOTAL

656.591

364.142

165.078

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

318.648

142.547

58.726

Capital work-in-progress

0.278

19.193

0.230

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
256.813
142.490

106.751

 

Sundry Debtors
88.403
147.350

127.668

 

Cash & Bank Balances
81.644
69.114

13.872

 

Other Current Assets
2.771
2.956

3.107

 

Loans & Advances
174.478
84.810

34.258

Total Current Assets
604.109
446.721

285.656

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
152.177

193.456

149.180

 

Other Current Liabilities
52.213
25.191

17.661

 

Provisions
62.054
25.672

12.694

Total Current Liabilities
266.444
244.319

179.535

Net Current Assets
337.665
202.402

106.122

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

656.591

364.142

165.078

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1659.750

1166.404

661.662

 

 

Other Income

43.234

17.645

7.218

 

 

TOTAL                                     (A)

1702.984

1184.049

668.880

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of Trading Goods

21.971

0.000

0.000

 

 

Material consumption

805.735

588.791

355.171

 

 

Direct Manufacturing Expenses

51.843

40.552

19.724

 

 

Personnel expenses

145.140

104.469

56.932

 

 

Administration expenses

53.588

43.056

18.542

 

 

Selling expenses

300.939

189.738

158.122

 

 

Increase/(Decrease) in stock

(44.083)

(10.900)

(50.363)

 

 

TOTAL                                     (B)

1335.133

955.706

558.128

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

367.851

228.343

110.754

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3.276

3.122

2.475

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

364.575

225.221

108.277

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

26.978

13.069

4.802

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

337.597

212.152

103.475

 

 

 

 

 

Less

TAX                                                                  (I)

12.139

11.958

13.796

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

325.458

200.194

89.679

 

 

 

 

 

 

Earnings Per Share (Rs.)

342.50

215.23

97.16

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
19.11

16.91

13.41

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
20.34

18.19

15.64

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
36.58

36.00

30.05

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.53

0.69

1.04

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.45

0.97

2.45

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.27

1.83

1.59

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

           

This form is for

Creation of charge

Corporate identity number of the company

U41000DL2007PLC161952

Name of the company

KENT R O SYSTEMS  LIMITED.

Address of the registered office or of the principal place of  business in India of the company

H-35, South Extension -Part1, Kidwai Nagar, New Delhi – 110049, Delhi, India

Type of charge

Book Debts

Immovable Property

Movable property (not being pledge)

Particular of charge holder

Oriental Bank of Commerce, F-1, CSC, DDA Market, Vasundhra Enclave, Delhi-110095, India

bm0844@Obc.Co.In

Nature of description of the instrument creating or modifying the charge

Agreement of Hypothecation of Assets.

Date of instrument Creating the charge

18.07.2007

Amount secured by the charge

Rs.40.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate Of Interest :

At PLR, Presently 13.25% P.A.

 

Terms of Repayment :

As Per Agreement.

 

Margin :

Margin-25%

 

Extent and Operation of the charge :

100%

Short particulars of the property charged

Hypothecation of Stock of Raw Material, Stock In Process, Finished Goods, Stores and Spares and Receivables.

Hypothecation of All Existing and Future Fixed Assets of the Company.

 

FIXED ASSETS:

 

  • Factory Land at Roorkee
  • Factory Land at Bantakhedi
  • Plot at Greater Noida
  • Factory Building at Roorkee
  • Office at Mumbai
  • Office at Ludhiana
  • Office at Jaipur
  • Plant and Machinery
  • Mould
  • Computers and Software
  • Furniture and Fixtures
  • Office Equipments
  • Scooter and Motor Cycles
  • Motor Cars
  • Commercial Vehicles

 

 

AS PER WEBSITE

 

PROFILE

 

Subject is a 21st century health care products company with a vision for making the world a healthy and a happy family. Their mission is to produce innovative health care products that purify the water they drink, the food they eat and the air they breath, thus help people live healthier.

 

Pioneers in bringing revolutionary RO™ technology to India for the first time, Kent, started in 1995 in Noida, Despite a humble beginning, today Kent is a strong organization with offices spread across Delhi, NCR, Mumbai and other major cities. Most importantly, having lacs of satisfied customers to its credit.

 

Their product philosophy is unambiguous. They help people in attaining the biggest and most precious wealth, perfect health, and this is reflected in their range of health care products.

 

FEATURES

 

  • Suitable for all types of raw water like tap water, bore-well water and stored tank water.
  • Purified water of bottled quality standards yet made at home.
  • T.D.S of purified water is adjustable on site to ensure minimum mineral contents in purified water.
  • Double purification by RO followed by UV along with Mineral RO™ technology.
  • Fully automatic operations with auto-start and auto-off with storage tank to give pure water on demand.
  • Built with SMPS to operate from 100-300V AC power supply.
  • Incorporates push-in fittings for leak-free performance and long-life.
  • 11W UV lamp with fail-safe buzzer.
  • Incorporates FILMTECH membrane of DOW - U.S.A.
  • Used refurbished Varian, Elekta, Siemens linear accelerators
  • High quality sediment and carbon filters exhibiting long life.

 

KENT R.O. FRANCHISEE MARKETING MODEL

 

As usual Water Purifiers are sold through concept selling, so is R.O. They are supposed to generate references through all kind of media viz., advertisements, references from customers, their own contacts, UV Water Purifier users etc. The process of selling involves:

 

  • Enquiries generation
  • Product demo at customer’s premises
  • Convincing customer
  • Order procurements
  • Delivery and payment collection
  • Installation
  • After sales service

 

* Good after sales service encourages customers to give more references which
keep the cycle of selling going on.

 

Kent R.O. Systems wishes to appoint franchise in different cities of India. These franchises would totally be responsible to do direct marketing of Kent R. O. products in their respective areas.

 

  • Kent R-O Systems would support the franchise by training their staff, supplying publicity material and advertisement support.
  • The franchises would be totally responsible for demonstration, collecting orders, product installation as well as servicing during the warranty period.
  • Spares required in warranty period would be supplied free of cost by the Company.

 

 

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.44.58

UK Pound

1

Rs.71.75

Euro

1

Rs.64.80

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

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

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.