MIRA INFORM REPORT

 

 

Report Date :

06.06.2011

 

IDENTIFICATION DETAILS

 

Name :

KAMADGIRI FASHION LIMITED (w.e.f. October 18, 2010)

 

 

Formerly Known As :

KAMADGIRI SYNTHETICS LIMITED

 

 

Registered Office :

28, Y.A. Chunawala Industrial Estate, Kondivita Lane, Andheri (East), Mumbai – 400 059, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

04.02.1987

 

 

Com. Reg. No.:

11-042424

 

 

Capital Investment / Paid-up Capital :

Rs.47.392 millions

 

 

CIN No.:

[Company Identification No.]

L17120MH1987PLC042424

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMK10693E

 

 

PAN No.:

[Permanent Account No.]

AAACK1654P

 

 

Legal Form :

Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of Polyester Viscose, Poly Wool, Silk Fabrics and Polyester Viscose Grey Yarn.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 722000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for 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)

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 :

28, Y.A. Chunawala Industrial Estate, Kondivita Lane, Andheri (East), Mumbai – 400 059, Maharashtra, India

Tel. No.:

91-22-67313140/ 67313123

Fax No.:

91-22-67313199

E-Mail :

mumho@kslindia.in

cs@kslindia.in

Website :

www.kslindia.in

 

 

Corporate Office :

10, 187, Dadiseth Agiary Lane, Singhania Wadi, Chira Bazar, Mumbai, Maharashtra - 400 002, Maharashtra, India

Tel. No.:

91-22-22019118

 

 

Factory 1 :

43/2, Ganga Devi Road, Umbergaon, District-Valsad - 396 171, Gujarat, India

 

 

Factory 2 :

C-4/2/2, MIDC, Tarapur, District: Thane - 401 506, Maharashtra, India

Tel. No.:

91-2525-645538

Fax No.:

91-2525-260608

 

 

DIRECTORS

 

Name :

Mr. Pradip Kumar Goenka

Designation :

Chairman and Managing Director (Promoter)

 

 

Name :

Mr. Lalit Kumar Goenka

Designation :

Whole Time Director (Promoter)

Date of Birth/Age :

49 Years

Qualification :

Under Graduate

Expertise in specific functional areas :

Vide experience in Textile Industry. He is not a Member of committee of Board of any other Company. He is the Compliance Officer of the Company.

 

 

Name :

Mr. Murarilal Goenka

Designation :

Director (Independent Non Executive)

Date of Birth/Age :

51 Years

Qualification :

B. Com

Expertise in specific functional areas :

Vide experience in Textile Industry. He advises the Company in Production and Factory matters. He is the Chairman of the Remuneration Committee and also Member of the Audit Committee and Shareholders / Investor Grievance Committee of the Board.

 

 

Name :

Mr. Subash Kumar Kedia

Designation :

Director (Independent Non Executive)

 

 

Name :

Mr. Madhusudam Singrodia

Designation :

Director (Independent Non Executive)

 

 

Name :

Mr. Ashwani Bhatia

Designation :

Director (Independent Non Executive) (w.e.f. 30.10.2009)

Date of Birth/Age :

53 Years

Qualification :

Textile Engineer

Expertise in specific functional areas :

Vide Experience in Textile Industry.

 

 

Name :

Mr. Tilak Pradip Goenka

Designation :

Director (Executive) (upto.30.10.2009)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1,346,059

26.58

Bodies Corporate

468,400

9.25

Sub Total

1,814,459

35.82

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

1,814,459

35.82

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

900

0.02

Sub Total

900

0.02

(2) Non-Institutions

 

 

Bodies Corporate

2,521,239

49.78

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

429,212

8.47

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

295,056

5.83

Any Others (Specify)

4,000

0.08

Non Resident Indians

4,000

0.08

Sub Total

3,249,507

64.16

Total Public shareholding (B)

3,250,407

64.18

Total (A)+(B)

5,064,866

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

5,064,866

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Polyester Viscose, Poly Wool, Silk Fabrics and Polyester Viscose Grey Yarn.

 

 

Products : 

Item Code No. (ITC Code)

5402 : 32

Product Description

Fabrics and Garments

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Installed Capacity

Actual Production #

 

Weaving Division ($)

Machines nos.

100

In Lac Mtrs. (&)

49.89

Garment Division

Stitching Machine nos.

590

In Lac Pieces (*)

15.96

 

 

 

 

 

 

NOTES

(@) Including machines 20 for weaving division and Nil for garment division taken on hire/lease.

(#) Including production taken on hired machines.

($) The capacity of weaving varies according to quality and design of fabrics and as per R. P. M. of the Looms and garments P. A. 19.80 lacs pieces.

(&) Including 28.02 lacs mtrs. on the job work basis for outsiders.

(*) Includes 6.99 lacs pieces job work for outsiders.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v      State Bank of Hyderabad

v      Bank of Baroda

v      Bombay Mercantile Co-Operative Bank Limited

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

TERM LOANS : From Banks

14.872

32.705

WORKING CAPITAL LOANS : From Banks (Notes)

163.055

77.290

Total

177.927

109.995

 

Natures of securities given for secured loans are as under:

(i) Term loans of Rs.14.390 millions are secured by equitable mortgage of Factory Land and Building and hypothecation of plant and machineries.

(ii) Motor car loan of Rs.0.481 million is secured by hypothecation of specific vehicle.

(iii) Cash Credit of Rs.163.055 millions and Letters of Credit of Rs.2.232 millions is secured by first pari passu charge on the entire current assets of the company under the consortium arrangement.

(iv) Loans repayable within one year:

Term Loan Form Banks Rs.13.372 millions (P.Y. Rs.17.114 millions)

(v) The above loans are further secured by personal guarantee / collaterally as under:

• Term Loans and Cash Credit facilities mentioned in (i) and (iii) above - Chairman and Managing Director and Chief Executive Officer and first charge over the fixed assets of the Company.

 

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Long Term:

Deposit (Notes)

6.300

6.300

Short Term:

Inter-Corporate Loan

0.000

2.573

Total

6.300

8.873

 

a) The Company has given premises on operating lease for a period of 99 years commencing from 1st January, 2007 which is non cancellable for 99 years. Interest free refundable deposit Rs.6.300 millions received by the Company, has been taken under unsecured loans as security deposits. Other information are as under:

 

(Rs. in millions)

(i) Information as to Premises:

2009-10

2008-09

• Gross Carry Amount

7.855

7.855

• Depreciations For the Year

0.186

0.157

• Accumulated Depreciation

2.810

2.624

(ii) The total future minimum lease rentals

receivables at the balance sheet is as under:

 

 

• For a period not later than one year

0.018

0.018

• For a period later than one year and

not later than Five year

0.072

0.072

• For a period later than Five year

1.634

1.652

 

b) The Company has taken various factory galas /machineries/shops under operating lease. These are not non-cancellable and for a period ranging between 11 months and/or above and are also renewable at the mutual consent at mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with agreed terms. The rent paid for the year as per agreements has been debited to profit and loss account.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

R.S. Agarwal and Associates

Chartered accountants

Address :

Mumbai, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

As on 29.09.2010

Authorised Capital : Rs.200.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs.50.642 millions

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

9586000

Equity Shares

Rs.10/- each

Rs.95.860 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4739866

Equity Shares

Rs.10/- each

Rs.47.399 millions

 

Less: Allotment moneys in Arrear

(Other than Directors)

 

Rs.0.007 million

 

Total

 

Rs.47.392 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

47.392

29.993

30.000

2] Share Capital Suspense

0.000

17.399

0.000

3] Reserves & Surplus

130.532

121.519

68.300

4] Warrant Application Money

2.600

0.000

 

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

180.524

168.911

98.300

LOAN FUNDS

 

 

 

1] Secured Loans

177.927

109.995

92.800

2] Unsecured Loans

6.300

8.873

6.300

TOTAL BORROWING

184.227

118.868

99.100

DEFERRED TAX LIABILITIES

17.512

21.108

19.800

 

 

 

 

TOTAL

382.263

308.887

217.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

178.300

147.053

119.900

Capital work-in-progress

1.078

37.542

0.000

 

 

 

 

INVESTMENT

9.162

9.162

10.400

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
156.149
120.351

57.200

 

Sundry Debtors
174.379
175.873

63.900

 

Cash & Bank Balances
13.606
4.085

0.500

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
28.543
13.801

18.200

Total Current Assets
372.677

314.110

139.800

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
127.309

152.656

44.000

 

Other Current Liabilities
36.914
36.746

 

 

Provisions
14.731
9.578

8.900

Total Current Liabilities
178.954
198.980

52.900

Net Current Assets
193.723
115.130

86.900

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

382.263

308.887

217.200

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Sales and Operating Income

1053.527

825.220

356.000

 

 

Other Income

21.476

3.895

3.300

 

 

TOTAL                                     (A)

1075.003

829.115

359.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Decrease/(increase) of Finished Stock

(18.404)

4.068

331.400

 

 

Cost of Inventories Consumed

368.150

193.116

 

 

 

Cost of Goods Traded in

314.132

296.989

 

 

 

Personnel Cost

111.938

96.630

 

 

 

Manufacturing Cost

152.637

128.385

 

 

 

Administrative and Other Expenses

79.326

61.657

 

 

 

TOTAL                                     (B)

1007.779

780.845

331.400

 

 

 

 

 

Less

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

67.224

48.270

27.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

23.538

20.624

12.900

 

 

 

 

 

 

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

43.686

27.646

15.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

16.103

16.191

14.100

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

27.583

11.455

0.900

 

 

 

 

 

Less

TAX                                                                  (H)

11.798

4.045

(1.300)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

15.785

7.410

2.200

 

 

 

 

 

 

Add/(Less) :Tax adjustments for earlier years

1.298

(0.086)

NA

 

Add/(Less): Prior period items

(0.325)

0.000

NA

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

31.353

29.574

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.419

0.000

NA

 

 

Proposed Dividend

5.925

4.740

NA

 

 

Tax on Proposed Dividend

0.984

0.805

NA

 

BALANCE CARRIED TO THE B/S

40.783

31.353

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Plant & Machinery

3.922

0.000

NA

 

 

Stores & Spare parts

1.698

2.036

NA

 

TOTAL IMPORTS

5.620

2.036

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

3.54

2.44

NA

 

- Diluted

3.49

1.55

NA

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

243.300

412.020

382.600

417.260

Total Expenditure

225.280

382.150

351.690

388.170

PBIDT (Excl OI)

18.020

29.870

30.910

29.090

Other Income

1.130

0.330

0.980

3.400

Operating Profit

19.150

30.200

31.890

32.480

Interest

5.960

9.570

10.260

17.330

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

13.190

20.630

21.630

15.150

Depreciation

4.730

5.990

6.220

5.840

Profit Before Tax

8.460

14.640

15.410

9.310

Tax

2.820

8.480

0.790

3.420

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

5.650

6.160

14.620

5.880

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

5.650

6.160

14.620

5.880

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
1.47
0.89

0.61

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
2.62
1.39

0.25

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.01
2.48

0.35

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15
0.07

0.01

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.01
1.88

1.55

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.08
1.58

2.64

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY:

 

Subject, promoted by P K Goenka and others, was incorporated as a private limited company in Feb.'87. Its unit at Umbergaon, Gujarat, has an installed capacity to manufacture 21 lac mtr pa of synthetic fabrics. Subject commenced production, sales and exports in 1987. The company went public in Nov.'93 to part-finance the increase in its existing weaving capacity from 21 lac mtr pa to 29 lac mtr pa by installing state-of-the-art shuttleless weaving machines and to set up a spinning unit with a capacity of 360 tpa. The Company mainly operates in 3 segments. The segment 1 one manufacturing of synthetic fabrics and segment 2 dealt with manufacturing of blended yarn, segment 3 dealt with rent and services. The raw materials required by the company are texturised polyester yarn and polyester viscose spun yarn. Subject sells its products to the sourcing concerns of several manufacturers of well-known brands like Siyaram, Grasim Industries, etc. About 50% of the yarn produced is consumed captively and the balance is sold in the domestic market. The company's product is exported to Egypt, Indonesia, Kuwait, Saudi Arabia, Bahrain, Colombia, Lebanon, U.A.E, Bangladesh, Jordan, Singapore. The company has been granted Export House Status by Government of India, Ministry of Commerce for a period of 3 years from 01.04.96 to 31.03.99. Company has took new innovative product mix, design, blended fabric and better product line, maximum utilisation of capacities, cost reduction, economies of scales which will bring in positive change in turnover and profitability of company. Company product "KSL-TRUE Value" is fairing well and has introduce various superfine quality suiting made of Viscose Polyester blend fibre under its brand name "True Value".

 

OPERATIONS

 

During the year, performance of the Company was satisfactory. The Company has achieved a turnover of Rs.1053.500 millions during the year as compared to Rs.825.200 millions during the previous year. The Profit after tax for the financial year 2009-10 was Rs.15.700 millions as compared to Rs.7.410 millions during the previous year. The better performance in the year was result of efficient and better utilisation of available manufacturing facilities, conversion of job work sales into direct processed and complete garment sales as well as trading operations to meet raw material requirements for manufacturing facilities and distribution.

 

FUTURE PLANS

 

During the current financial year, the Company have added 24 Tzudocoma Airjet weaving machines to fullfill the ever growing demand of cotton fabrics. With measures taken to achieve higher efficiencies it is expected that the Current capacity will improve substantially.

 

As young India demands more and formal smart casual and casual products, during the year, the Company converted one shirt manufacturing unit for producing casual shirts. Also they started offering a complete package of ready garment during the year in comparison to major portion of job work or conversion in 2008-09.

 

True value grew its distribution business to new heights. "True Lines" range got established with retailers as well as customers. They are positioning it among the top brands in linen over the counter distribution business. To improve its positioning, the offering has been done through innovative product catalogues. The Company expects and targets quadruple growth of linen business during the current year.

 

Future Group continues to be associated for strategic and marketing initiatives. This help the Company to counter competitors and assures ready market for its quality products.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

The market for the textile in general and suiting and shirting fabrics in particular is growing rapidly post revival of the economy. With increase of export of textiles once again the fabrics prices had started moving northwards and providing better margins to the manufacturers and other wholesalers. Further the increased consumption of garments in domestic markets, has also contributed in increased demand for the fabrics.

 

As committed, the Company is taking all initiatives for the sustainable growth and development of the Company. The management is looking for various options for growth including organic by way of expansion of the existing facilities as well as inorganic by taking over certain facilities as may be available for acquisition as a viable opportunities.

 

OPPORTUNITIES AND THREATS:

 

Increase in input cost, exports from neighbouring countries, increased supply of fabrics and increase in Interest rates for borrowed funds continue to be the major threats to the industry.

 

The Indian market is evolving and becoming more fashion conscious and at the same time is also conscious about the costs. Accordingly the companies, delivering value for money products are making good show and getting better attention from customers. As the Company is concentrating only on the domestic market and having products which delivers value for money and as the Company has also ensured wide availability of products through organised retail segment, the Company's products have good recall value. Further through efficient production management system and better product mix the risks can be minimised that may be arising by overall increase in cost of production and competition.

 

PRODUCTAND PERFORMANCE:

 

The Company is working on improving its product mix to improve the sale of its products in the market and to the ultimate customers. The Company now has presence in the Fabrics and private label garment. The trading division ensures availability of the input products in time.

 

OUTLOOK:

 

The amalgamation of the shirt manufacturing unit of Stripes with the Company has helped the Company to take a good step on the growth path. The Company is considering the growth by expansion as well as taking over some of the existing facilities, if available as a good opportunity. The Company would like to continue its journey on the growth path.

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

 

During the year the total production for the Fabrics unit is given hereunder. The production of the Grey fabrics, finish fabrics (including job) were 49.89 Lacs Meters and 22.74 Lacs Meters respectively as against 47.47 Lacs Meters and 24.09 Lacs Meters in the previous financial year.

 

The Profit before tax recorded during the year was Rs.27.583 millions as against Rs.11.456 millions in the previous financial year.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

 

(i) Tax matters in appeals-

 

For 2009-10

(Rs. in millions)

Income Tax

11.151

Sales Tax

3.104

 

(ii) Guarantees given by the bankers of the company amounting to Rs.1.155 millions against the fixed deposit of Rs.0.828 million kept as margin money.

 

(iii) Liability, if any, arising on account of undertakings given by the company under EPCG scheme, pending fulfillment of export obligation approximately Rs.33.445 millions.

 

FIXED ASSETS:

 

v      Land

v      Leasehold Land

v      Building/flat

v      Factory Building

v      Plant and Machinery

v      Electrical Installation

v      Office Equipment

v      Furniture and Fixtures

v      Vehicles

v      Bicycle

v      Computers and Softwares

 

WEBSITE DETAILS:

 

PROFILE:

 

Subject is extensively engaged in the manufacture and export of polyester viscose, poly wool, silk fabrics and polyester viscose grey yarn. Operating from India, the organization has rich experience of over 20 years in blended fabrics, silk fabrics and yarn as per the latest trends. All these years, subject has concentrated its efforts at becoming a market leader in its sphere.

 

Yarn division: Yarn is a strand composed of fibers, filaments (individual fibers of extreme length), or other materials, either natural or man-made, suitable for use in the construction of interlaced fabrics, such as woven or knitted types. They offer two varieties of yarns that include.

 

Fabrics division: Fabrics are created from fibers of animal's coats, silkworm cocoons, and plants' seeds, leaves, and stems. Subject manufactures and export viscose fabric, woolen fabric, poly wool fabric, poly viscose fabric, woolen suiting fabric, Following two varieties of fabric that are in great demand among the buyers.

 

Spinning division: Spinning is the process of drawing out and twisting fibres to join them firmly together in a continuous thread or yarn. Spinning is an indispensable preliminary to weaving cloth from those fibres that do not have extreme length. The determination of the most economic conditions such as package size and spindle speed are influenced by many cost factors including capital, power, doffing, rewinding, and floor space.

 

Subject has played a prominent role in the revival of weaving in the organized sector in India by putting up one of the first airjet technology based weaving facility. They have been continuously increasing company weaving capacity since the past so many years and now they have capacity to produce millions of square meters of top quality fabric especially silk fabric, linen fabrics annually.

 

 

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.44.85

UK Pound

1

Rs.73.29

Euro

1

Rs.64.89

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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.