MIRA
INFORM REPORT
|
Report Date : |
23.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
INDOWORTH INDIA LIMITED |
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Formerly Known
As : |
KANODIA GREEN WORTH ( |
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Registered Office : |
B-130/1 MIDC Industrial Area, Butibori, Nagpur-441108, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
13.01.1997 |
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Com. Reg. No.: |
11-105543 |
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Capital Investment
/ Paid-up Capital : |
Rs.0.500 Million |
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CIN No.: [Company
Identification No.] |
U01122MH1997PLC105543 |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturer of Wool and Polywool Yarn. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca (17) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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. There appears to be huge accumulated losses
recorded by the company. However, trade relations are reported as fair.
Business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and
secured 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
LOCATIONS
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Registered Office / Factory : |
B-130/1 MIDC Industrial Area, Butibori, Nagpur-441108, |
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Tel. No.: |
91-7104-265474 / 265475 / 265321 / 265308 |
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Fax No.: |
91-7104-265309 / 265309 |
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E-Mail : |
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Website : |
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Branches : |
2-4, Jambul Wadi, First Floor, |
DIRECTORS
As on 28.09.2010
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Name : |
Mr. Shiv Narayan Maheshwari |
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Designation : |
Director |
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Address : |
20 Pandey Layout Khamla Indraprastha Colony, Nagpur-441122, |
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Date of Birth/Age : |
12.10.1954 |
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Date of Appointment : |
27.06.2000 |
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Name : |
Mr. Lab Chandra Chakravorty |
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Designation : |
Director |
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Address : |
Guest House B – 130, MIDC, Butibori, Nagpur-441122, |
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Date of Birth/Age : |
03.06.1946 |
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Date of Appointment : |
01.07.2007 |
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Name : |
Mr. Bijay Kumar Dalmia |
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Designation : |
Director |
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Address : |
196C, |
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Date of Birth/Age : |
24.10.1947 |
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Date of Appointment : |
13.09.2003 |
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Name : |
Mr. Narendra Kumar Singhal |
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Designation : |
Director |
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Address : |
156, Ballabh Bari, Gumanpura, Kota-324007, |
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Date of Birth/Age : |
12.01.1944 |
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Date of Appointment : |
01.09.2008 |
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Name : |
Mr. Kalyan Kumar Chattopadhyay |
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Designation : |
Additional Director |
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Address : |
Flat No. 4C, 4D 63, |
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Date of Birth/Age : |
05.10.1948 |
KEY EXECUTIVES
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Name : |
Mr. S.K. Rathi |
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Designation : |
General Manager Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 28.09.2010
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Names of Shareholders |
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No. of Shares |
|
Vishwanath Kanodia |
|
1550 |
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Manoj Kanodia |
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1550 |
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Vikas Kanodia |
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1550 |
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Jai Kumar Singh |
|
560 |
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Raj Kumar Patodia |
|
560 |
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Rajendra Prasad Chaube |
|
560 |
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Harishchandra D Sharma |
|
560 |
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Sanjay Nawal |
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610 |
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Akakins Holdings Limited, |
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42500 |
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Total |
|
50000 |
As on 28.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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85.00 |
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Other
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15.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Wool and Polywool Yarn. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
Unit |
Actual
Production |
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Worsted Yarn/ Top |
(Kgs) |
1573779.24 |
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Waste |
(Kgs) |
348110.47 |
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Fabric |
(Mtrs) |
830726.60 |
GENERAL INFORMATION
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No. of Employees
: |
Not Available |
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Bankers : |
Not Divulged |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Singhi and Company Chartered Accountants |
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Address : |
Emerald House, 4th Floor, 1 B, |
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Tel. No.: |
91-33-22484573 |
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Mobile No.: |
91-9836233222 |
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Fax No.: |
91-33-22307141 |
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E-Mail : |
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Website: |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60,000,000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000 |
Equity Shares |
Rs.10/- each |
Rs.0.500
Million |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
0.500 |
0.500 |
0.500 |
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2] Share Application Money |
46.579 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(1158.360) |
(981.325) |
(707.229) |
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NETWORTH |
(1111.281) |
(980.825) |
(706.729) |
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LOAN FUNDS |
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1] Secured Loans |
2.780 |
1080.686 |
1021.404 |
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2] Unsecured Loans |
894.837 |
941.416 |
1069.996 |
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TOTAL BORROWING |
897.617 |
2022.102 |
2091.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
(213.664) |
1041.277 |
1384.671 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
136.491 |
1089.251 |
1177.983 |
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Capital work-in-progress |
0.000 |
0.000 |
0.950 |
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INVESTMENT |
70.775 |
70.777 |
70.777 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
397.199
|
341.293
|
487.298 |
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Sundry Debtors |
658.251
|
919.946
|
1061.228 |
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Cash & Bank Balances |
11.045
|
59.957
|
240.882 |
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Other Current Assets |
56.736
|
0.000
|
0.000 |
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Loans & Advances |
872.601
|
637.029
|
300.271 |
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Total
Current Assets |
1995.832
|
1958.225
|
2089.679 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
2298.880
|
1893.207 |
1874.415 |
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Other Current Liabilities |
117.882
|
183.769
|
80.303 |
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Provisions |
0.000
|
0.000
|
0.000 |
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Total
Current Liabilities |
2416.762
|
2076.976
|
1954.718 |
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Net Current Assets |
(420.930)
|
(118.751)
|
134.961 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
(213.664) |
1041.277 |
1384.671 |
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PROFIT & LOSS
ACCOUNT
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|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
995.788 |
1397.116 |
1718.655 |
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Other Income |
63.268 |
67.470 |
75.360 |
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TOTAL (A) |
1059.056 |
1464.586 |
1794.015 |
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Less |
EXPENSES |
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Raw material consumed |
661.876 |
908.635 |
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Payments to and provision for employees |
72.840 |
67.569 |
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Manufacturing expenses |
188.403 |
211.688 |
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Administrative, selling and others expenses |
135.875 |
115.770 |
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Increase / decrease in stocks |
(7.660) |
133.981 |
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TOTAL (B) |
1051.334 |
1437.643 |
1731.929 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7.722 |
26.943 |
62.086 |
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Less |
FINANCIAL
EXPENSES (D) |
84.702 |
200.087 |
92.643 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(76.980) |
(173.144) |
(30.557) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
100.055 |
100.052 |
99.456 |
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PROFIT BEFORE
TAX (E-F) (G) |
(177.035) |
(273.196) |
(130.013) |
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Less |
TAX (H) |
0.000 |
0.900 |
(1.000) |
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PROFIT AFTER TAX
(G-H) (I) |
(177.035) |
(274.096) |
(131.013) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(981.325) |
(707.229) |
NA |
|
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BALANCE CARRIED
TO THE B/S |
(1158.360) |
(981.325) |
NA |
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EARNINGS IN
FOREIGN CURRENCY |
588.233 |
998.374 |
1135.505 |
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IMPORTS |
|
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Raw Materials |
458.189 |
659.921 |
|
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|
Stores & Spares |
30.953 |
46.666 |
|
|
|
|
Capital Goods |
0.460 |
1.830 |
|
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TOTAL IMPORTS |
489.602 |
708.417 |
810.228 |
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|
Earnings Per
Share (Rs.) |
(5.89) |
(9.12) |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(16.72)
|
(18.71) |
(7.30) |
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Net Profit Margin (PBT/Sales) |
(%) |
(17.78)
|
(19.55) |
(7.56) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(8.30)
|
(8.96) |
(3.89) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.28 |
0.18 |
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Debt Equity Ratio (Total Liability/Networth) |
|
(2.98)
|
(4.18) |
(5.73) |
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Current Ratio (Current Asset/Current Liability) |
|
0.83
|
0.94 |
1.07 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
For Goods |
128.457 |
43.585 |
136.424 |
|
Fro Others |
2170.423 |
1849.622 |
1737.991 |
|
Total |
2298.880 |
1893.207 |
1874.415 |
OPERATION:
Overall performance of the textile industry in
Under the provision of Securitization and Reconstruction of Financial
assets and Enforcement of Security Interest Act 2002 (SARFFSA) ARCIL has taken
over the possession of the secured assets including fixed assets transferred
from bodies corporate and appointed the company as custodian of secured assets
u/s 13(4) of the SARFFSA act at an agreed amount of Rs.0.100 million per month
payable to ARCIL vide fetter dated 28.02.2008 and now the company was put into
the status of ordinary lonant. In view of above, and on the hasts of legal
position and as per the decision of board. All remaining fixed assets and
related liabilities a per the restructuring scheme its approved by the ICICI
bank earlier have been transferred back to the related bodies corporate
together with the corresponding loan liabilities and interest provision on such
loan at book value as on 31st March 2010 and necessary entries have
been passed giving effete to the above.
Fixed Assets:
- Land
- Administrative Buildings
- Plant and Machinery
- Electric Installation
- Vehicle
- Furniture and Fixtures
- Office Equipments
- Computer
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.44.82 |
|
|
1 |
Rs.72.83 |
|
Euro |
1 |
Rs.64.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
--- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
--- |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
no |
|
--LISTED |
YES/NO |
no |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
17 |
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.