MIRA
INFORM REPORT
|
Report Date : |
11.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
ADD CORPORATION LIMITED |
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Formerly Known
As : |
ADD PENS LIMITED |
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Registered
Office : |
Business Park, 6th Floor, S V Road, Malad (West), Mumbai
400064, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
28.08.1997 |
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Com. Reg. No.: |
110325 |
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Capital Investment
/ Paid-up Capital : |
Rs. 175.000 millions |
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CIN No.: [Company Identification
No.] |
U36991MH1997PLC110325 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA15620D |
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PAN No.: [Permanent Account No.] |
AACCA3323R |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Writing Equipments |
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No. of Employees
: |
25 Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 97330000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct. 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.
INFORMATION PARTED BY
|
Name : |
Mr. Rajendra |
|
Designation : |
Accountants Manager |
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Contact No.: |
91-22-28767171 |
|
Date : |
10.06.2011 |
LOCATIONS
|
Registered Office : |
Business Park, 6th Floor, S V Road, Malad (West), Mumbai
400064, Maharashtra, India |
|
Tel. No.: |
91-22-28767171 |
|
Fax No.: |
91-22-28767878 |
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E-Mail : |
DIRECTORS
AS ON 17.08.2010
|
Name : |
Mr. Manakchand Jain |
|
Designation : |
Director |
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Date of Birth/Age : |
11.07.1955 |
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Date of Appointment : |
28.08.1997 |
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|
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Name : |
Mr. Kamal Jain |
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Designation : |
Director |
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Date of Birth/Age : |
01.07.1964 |
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Date of Appointment : |
11.11.1999 |
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|
|
|
Name : |
Mr. Pradeep Jain |
|
Designation : |
Director |
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Date of Birth/Age : |
05.08.1962 |
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Date of Appointment : |
03.03.2006 |
KEY EXECUTIVES
|
Name : |
Mr. Rajendra |
|
Designation : |
Accountants Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 17.08.2010
|
Names of Equity Shareholders |
No. of Shares |
|
Mr. Manakchand Jain |
4775000 |
|
Mr. Kiran M Jain |
674600 |
|
Mr. Deepak Jain |
2050000 |
|
Mr. Champalal Jain |
100 |
|
Mr. Naresh Jain |
100 |
|
Mr. Ghisalal Jain |
100 |
|
Mr. Jane Vaz Luiz |
100 |
|
Total |
7500000 |
|
Names of Preference Shareholders |
No. of Shares |
|
Tizara Polytech P Limited, Mumbai, Maharashtra |
1000000 |
|
Total |
1000000 |
AS ON 17.08.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Directors or relatives of directors |
|
99.99 |
|
Other top fifty shareholders |
|
0.01 |
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Total
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Writing Equipments |
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Products : |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
PRODUCTION STATUS
AS ON 31.03.2010
|
Particulars |
Unit |
Actual
Production |
|
Pens |
Pcs. |
23533906 |
|
Markers |
Pcs. |
1867840 |
|
Pencil |
Pcs. |
2276129 |
GENERAL INFORMATION
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No. of Employees : |
25 Approximately |
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Bankers : |
State Bank of India, IFB, Malad (West), Mumbai 400064, Maharashtra,
India |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K M Garg and Company Chartered Accountant |
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Address : |
603-604, unique Tower, Off S V Road, Goregaon (West), Mumbai 400062,
Maharashtra, India |
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|
|
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 17.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8500000 |
Equity Shares |
Rs. 10 each |
Rs. 85.000 millions |
|
1150000 |
Preference Shares |
Rs.100 each |
Rs. 115.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7500000 |
Equity Shares |
Rs. 10 each |
Rs.75.000 millions |
|
1000000 |
Preference Shares |
Rs.100 each |
Rs. 100.000 millions |
|
|
|
|
Rs. 175.000
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 |
175.000 |
190.000 |
190.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
68.331 |
63.656 |
50.382 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
243.331 |
253.656 |
240.382 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
120.248 |
149.409 |
168.902 |
|
|
2] Unsecured Loans |
15.501 |
32.664 |
44.164 |
|
|
TOTAL BORROWING |
135.749 |
182.073 |
213.066 |
|
|
DEFERRED TAX LIABILITIES |
15.232 |
11.966 |
2.721 |
|
|
|
|
|
|
|
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TOTAL |
394.312 |
447.695 |
456.169 |
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|
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|
|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
222.195 |
238.355 |
235.708 |
|
|
Capital work-in-progress |
0.365 |
1.937 |
26.171 |
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|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
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|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
108.919
|
107.454 |
160.596 |
|
|
Sundry Debtors |
72.568
|
122.296 |
68.859 |
|
|
Cash & Bank Balances |
9.123
|
14.242 |
13.136 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
13.942
|
12.626 |
20.977 |
|
Total
Current Assets |
204.552
|
256.618 |
263.568 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
22.096
|
35.635 |
50.634 |
|
|
Other Current Liabilities |
6.026
|
9.893 |
12.425 |
|
|
Provisions |
4.882
|
3.985 |
6.611 |
|
Total
Current Liabilities |
33.004
|
49.513 |
69.670 |
|
|
Net Current Assets |
171.548
|
207.105 |
193.898 |
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.204 |
0.298 |
0.392 |
|
|
|
|
|
|
|
|
TOTAL |
394.312 |
447.695 |
456.169 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
265.341 |
387.470 |
362.893 |
|
|
|
Other Income |
2.887 |
1.518 |
4.361 |
|
|
|
TOTAL (A) |
268.228 |
388.988 |
367.254 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
112.981 |
171.246 |
183.272 |
|
|
|
Manufacturing Expenses |
20.940 |
27.894 |
34.122 |
|
|
|
Increase/(Decrease) in Finished Goods |
1.482 |
28.438 |
10.905 |
|
|
|
Personnel Cost |
16.167 |
19.394 |
34.760 |
|
|
|
Administrative Expenses |
39.339 |
49.859 |
81.216 |
|
|
|
Preliminary Expenses W/Off |
0.093 |
0.093 |
0.093 |
|
|
|
TOTAL (B) |
191.002 |
296.924 |
344.368 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
77.226 |
92.064 |
22.886 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
25.679 |
23.974 |
30.361 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
51.547 |
68.090 |
(7.475) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
42.019 |
43.978 |
46.916 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9.528 |
24.112 |
(54.391) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4.853 |
10.839 |
(17.442) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4.675 |
13.273 |
(36.949) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
60.656 |
47.383 |
84.332 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Capital Redemption Reserve |
15.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
50.331 |
60.656 |
47.383 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2.089 |
5.139 |
27.062 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
13.242 |
22.910 |
38.341 |
|
|
|
Stores & Spares |
0.372 |
12.170 |
0.007 |
|
|
|
Capital Goods |
14.957 |
19.370 |
35.219 |
|
|
|
Others |
9.262 |
2.272 |
0.000 |
|
|
TOTAL IMPORTS |
37.833 |
56.722 |
73.567 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.62 |
-- |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.74
|
3.41 |
(10.06) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.59
|
6.22 |
(14.98) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.23
|
4.87 |
(10.89) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.09 |
(0.22) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.75
|
0.96 |
1.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.19
|
5.18 |
3.78 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors |
22.096
|
35.635 |
50.634 |
OPERATIONS
The sale for 2009-10
was Rs. 265.300 millions as compared to Rs. 387.400 millions in 2008-09. Profit
/ (Loss) after tax for the current year is Rs. 4.675 millions against Profit /
(Loss) after tax of Rs. 13.274 millions in the last year. The Company is
focusing more on the institutional sales, high end products, development of
foreign and newer market for its exclusive pens range of products to widen its
product base and improve its profitability.
In the year under
report, company changed its marketing strategy by shifting its base of selling
products from super stockiest, directly to regional distributors through its
associate concern who are operating branches, maintained through- out the
country. In effect being a preliminary stage, sales of the company slowed down
but company will reap the benefits of increase in turnover and margins in
coming years.
FIXED ASSETS:
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Accessories
·
Electrical Installation
·
Dies and Moulds
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
FORM 8
|
Corporate
identity number of the company |
U36991MH1997PLC110325 |
|
Name of the
company |
ADD CORPORATION LIMITED |
|
Address of the
registered office or of the principal place of business in |
Business Park, 6th Floor, S V Road, Malad (West), Mumbai
400064, Maharashtra, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Book debts Movable property
(not being pledge) |
|
Particular of
charge holder |
State Bank of India, IFB, Malad (West), Mumbai 400064, Maharashtra,
India Email: kamalax_saraf@hotmail.com
|
|
Nature of
instrument creating charge |
A) Supplemental agreement
of loan for increase in the overall limit
B). Supplemental
agreement of hypothecation of goods and assets for increase in the
overall C) Letter
regarding the grant of individual limits within the overall limit |
|
Date of instrument
Creating the charge |
22.10.2007 |
|
Amount secured by
the charge |
Rs. 227.100
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest CC (Stocks and
Book Debts)---Rs-120,000 millions @1.50% Above Sbar. Term Loan
II--------------------------Rs
36n,000 millions @1.50% Above Sbar. Margin Raw
Materials--------------25% Stock In
Process----------33.33% Finished
Goods-------------25% Term
Loan----------------------31.95% Book Debts/Receivables
(Cover 90 Days)-------40% Letter Of
Credit----------------------10% Bank
Guarantee-----------------------10% Extent and operation of the charge CC (Stocks % Book
Debts)---120.000 millions EPC/EBN----------------(7.500)
millions Term Loan-I(O/S)------------
21.100 millions Term
Loan--II---------------36.000 millions Letter Of
Credit-----------45.000 millions Bank
Guarantee----------------5.000 millions |
|
Short particulars
of the property charged (Including location of the property) |
A first charge by
way of the borrowers entire goods, movables and other assets present and
future including documents of title to goods and other assets such as book
debts, outstanding moneys, receivables by
way cash assistance and /or cash incentives under the cash incentive
scheme, or any other scheme claims including claims by way of refund of
customs/ excise duties under duty drawback credit scheme or any other scheme
bills, invoices, documents, contracts, engagements, securities, insurance |
|
Date of instrument
modifying the charge |
15.12.2006 |
|
Particulars of
the present modification |
Now By This
Modifn. The Limit Increased From Rs. 202.500 millions To Rs. 227.100 millions
|
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.44.72 |
|
|
1 |
Rs.72.93 |
|
Euro |
1 |
Rs.64.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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.