MIRA
INFORM REPORT
|
Report Date : |
21.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
DEFIANCE KNITTING INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
K-6, Additional Ambernath, Industrial Estate Area, MIDC, Ambernath
(East), Thane-421506, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
27.12.1993 |
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Com. Reg. No.: |
11-75811 |
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CIN No.: [Company
Identification No.] |
U17100MH1993PTC075811 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD05069B |
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PAN No.: [Permanent
Account No.] |
AAACD2225R |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of All Kind of Yarns and Cotton Textiles. |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 2430000 |
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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 records.
Financial position of the company is improving. Trade relations are reported
as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
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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 |
INFORMATION PARTED BY
|
Name : |
Mr. Manoj Chopra |
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Designation : |
Finance Manager |
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Contact No.: |
91-9930007001 |
LOCATIONS
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Registered Office/ Factory : |
K-6, Additional Ambernath, Industrial Estate Area, MIDC, Ambernath
(East), Thane-421506, |
|
Tel. No.: |
91-251-2621044/ 569389/ 6550105/ 6 |
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Mobile No.: |
91-9930007001 (Mr. Manoj Chopra) |
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Fax No.: |
91-251-2621055 |
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E-Mail : |
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Website : |
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Area : |
20000 sq. ft (Owned) |
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Sudhir Babubhai Vora |
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Designation : |
Director |
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Address : |
Villa No. 16, Street # 4, Meadows 7, P.O. 50223, |
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Date of Birth/Age : |
04.05.1956 |
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Date of Appointment : |
27.12.1993 |
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Name : |
Mr. Babubhai Chaturbhuj Vora |
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Designation : |
Whole time Director |
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Address : |
2101, |
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Date of Birth/Age : |
14.15.1925 |
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Date of Appointment : |
12.06.1996 |
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Name : |
Mr. Vishamber Badlani |
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Designation : |
Director |
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Address : |
Embee Readymade Garments, Industrial Area, No. 5, Plot No. 474,
Sharjah, UAE |
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Date of Birth/Age : |
12.05.1956 |
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Date of Appointment : |
14.08.1998 |
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Date of Ceasing: |
16.02.2009 |
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Name : |
Mr. Vanya Sudhir Vora |
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Designation : |
Director |
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Address : |
Villa No. 16, Street # 4, Meadows 7, |
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Date of Birth/Age : |
10.06.1966 |
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Date of Appointment : |
02.01.1995 |
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Name : |
Mr. Naraindas T Dewani |
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Designation : |
Whole Time Director |
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Address : |
303, C Wing, |
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Date of Birth/Age : |
15.07.1934 |
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Date of Appointment : |
10.01.1998 |
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Date of Ceasing: |
01.12.2008 |
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Name : |
Mr. Monoj Oza |
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Designation : |
Whole Time Director |
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Address : |
303, |
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Date of Birth/Age : |
14.07.1972 |
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Date of Appointment : |
29.12.2006 |
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Name : |
Mr. |
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Designation : |
Director |
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Address : |
111, Sangeeta 27/28, |
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Date of Birth/Age : |
04.01.1958 |
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Date of Appointment : |
24.12.2006 |
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Name : |
Mr. Avinash Sudhir Vora |
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Designation : |
Whole Time Directors |
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Address : |
2101 A |
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Date of Birth/Age : |
05.05.1987 |
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Date of Appointment : |
30.09.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Manoj Chopra |
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Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Equity
Shares |
No. of
Preferences Shares |
|
Sudhir Vora |
1563476 |
1320000 |
|
Bharti Badlani |
423890 |
104279 |
|
Vinya Vora |
17000 |
0 |
|
Amritkumar Bakshy |
13 |
0 |
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N.T. Dewani |
13 |
0 |
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Babubhai Vora |
13 |
0 |
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|
63 |
0 |
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Manoj Oza |
63 |
0 |
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Jamno Perumal Kalwani |
0 |
56782 |
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Total |
2004531 |
1481061 |
AS ON 30.09.2010
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Equity Share Breakup |
Percentage of Holding |
|
Category |
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Directors
or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of All Kind of Yarns and Cotton Textiles. |
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Products : |
Knitting of yarn |
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Exports : |
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Products : |
Cotton Textiles and Yarns |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
L/C / Cash / Credit (30 days / 60 days / 90 days) |
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Purchasing : |
L/C / Cash / Credit (30 days / 60 days / 90 days) |
PRODUCTION STATUS (AS ON 31.03.2009)
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Particulars |
31.03.2009 (M.T) |
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Licensed Capacity |
6000 |
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Installed Capacity |
4800 |
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Production (Own) |
1349.59 |
GENERAL INFORMATION
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Customers : |
End Users and OEM’s |
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No. of Employees : |
900 (Approximately) |
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Bankers : |
·
ICICI Limited, 163, Backbay Reclamation,
Mumbai-400020, ·
United Bank of ·
Standard Chartered Bank, Mumbai ·
Oriental Bank of Commerce, Ambernath Branch,
Ambernath-421501, ·
IDBI Bank Limited, ·
ICICI Banking Corporation Limited, Press House,
Nariman Point, Mumbai 400021, |
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Facilities : |
Note: 1. Working capital loan is secured by hypothecation of stocks of finished goods, work in process, raw materials and consumables and book debts and FDR under Lien. 2. Vehicle Loans are secured by hypothecation of specific vehicle (Due with in one year Rs. 0.533 Million (Rs. 0.115 Million) *3. Pursuant to loan agreement entered into by the company
with Indian Financial Institution for restructuring of rupee term loan, these
loans are secured by way of first charge on the fixed assets of the company
to the extent of the loan amount and are personally guaranteed by the
promoter directors. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
MGB and Associates Chartered Accountant |
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Address : |
22, Swadeshi Market,1st floor, |
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Associates/Subsidiaries : |
Activity: Manufacturing, importing and exporting of all kind of yarns
and cotton textiles
Activity: Manufacturing, importing and exporting of all kind of yarns
and cotton textiles
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CAPITAL STRUCTURE
AS ON 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2500000 |
Equity Shares |
Rs.100/- each |
Rs.250.000 Millions |
|
1500000 |
Preferences Shares |
Rs.100/ -each |
Rs.150.000 Millions |
|
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Total |
|
Rs.400.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2004531 |
Equity Shares |
Rs.100/- each |
Rs.200.453
Millions |
|
1481061 |
Preferences Shares |
Rs.100/ -each |
Rs.148.106
Millions |
|
|
Total |
|
Rs.348.559 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 |
|
|
|
|
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1] Share Capital |
332.453 |
332.453 |
374.530 |
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2] Share Application Money |
0.000 |
0.000 |
340.273 |
|
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3] Reserves & Surplus |
276.499 |
227.656 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
(194.597) |
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NETWORTH |
608.952 |
560.109 |
520.206 |
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LOAN FUNDS |
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1] Secured Loans |
46.769 |
85.643 |
57.928 |
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2] Unsecured Loans |
0.713 |
0.714 |
34.299 |
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TOTAL BORROWING |
47.482 |
86.357 |
92.227 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
656.434 |
646.466 |
612.433 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
417.640 |
410.889 |
463.224 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
76.933
|
54.309
|
54.687
|
|
|
Sundry Debtors |
121.081
|
130.621
|
57.304
|
|
|
Cash & Bank Balances |
38.279
|
36.154
|
62.888
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
84.862
|
80.083
|
45.429
|
|
Total
Current Assets |
321.155
|
301.167
|
220.308
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
32.023
|
45.583
|
58.442 |
|
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Other Current Liabilities |
32.862
|
14.291
|
11.884
|
|
|
Provisions |
17.476
|
5.716
|
0.773
|
|
Total
Current Liabilities |
82.361
|
65.590
|
71.099
|
|
|
Net Current Assets |
238.794
|
235.577
|
149.209
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
656.434 |
646.466 |
612.433 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
507.373 |
491.692 |
449.168 |
|
|
|
Other Income |
0.000 |
59.347 |
85.796 |
|
|
|
TOTAL (A) |
507.373 |
551.039 |
534.964 |
|
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|
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|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Material consumed |
|
351.068 |
351.865 |
|
|
|
Manufacturing and other expenses |
|
56.843 |
57.748 |
|
|
|
Selling and distribution expenses |
476.007 |
7.168 |
7.010 |
|
|
|
Office and administration expenses |
|
52.748 |
35.068 |
|
|
|
Prior period adjustment |
|
0.056 |
0.028 |
|
|
|
TOTAL (B) |
476.007 |
467.883 |
451.719 |
|
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|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
31.366 |
83.156 |
83.245 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
NA |
3.616 |
2.083 |
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
31.366 |
79.540 |
81.162 |
|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
NA |
39.194 |
39.741 |
|
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|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
31.366 |
40.346 |
41.421 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.444 |
0.319 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
31.366 |
39.902 |
41.102 |
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
(194.597) |
(235.699) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Adjusted on Capital Reduction |
NA |
(212.214) |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA
|
57.519 |
(194.597) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
304.946 |
271.743 |
32.758 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares and Repair Maintenances |
17.342 |
7.533 |
36.970 |
|
|
|
Sundry Fees and Subscription |
0.036 |
0.000 |
0.036 |
|
|
|
Legal and Professional Charges |
0.214 |
0.267 |
0.000 |
|
|
TOTAL IMPORTS |
17.592 |
7.800 |
37.006 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
15.64 |
12.56 |
19.35 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.18
|
7.24
|
7.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.06
|
8.21
|
9.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.24
|
5.67
|
8.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.07
|
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21
|
0.27
|
0.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.89
|
4.59
|
3.10 |
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 |
31.978 |
42.231 |
41.302 |
|
For Capital Goods
|
0.045 |
3.352 |
17.140 |
|
Total |
32.023 |
45.583 |
58.442 |
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge identification
number of the modified |
90158902 |
|
Corporate
identity number of the company |
U17100MH1993PTC075811 |
|
Name of the
company |
DEFIANCE KNITTING
INDUSTRIES P LTD |
|
Address of the
registered office or of the principal place of business in |
K-6, Additional Ambernath, Industrial Estate Area, MIDC, Ambernath
(East), Thane-421506, |
|
Type of charge |
Book Debts Movable Property
(not being pledge) Immovable
Property |
|
Particular of charge
holder |
IDBI Bank Limited, |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental deed
of hypothecation made 04 |
|
Date of
instrument Creating the charge |
04.08.2010 |
|
Amount secured by
the charge |
Rs.79.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per Loan cum
Hypothecation agreement dated 24th February, 2010, Supplemental Hypothecation
agreement dated 04th August, 2010 Terms of
Repayment One year validity Extent and
Operation of the charge The charge is to operate
as a security for the repayment of Rs. 79.000 Millions to the Bank Others Security by way
of first charge |
|
Short particulars
of the property charged |
All present and
future stocks, raw materials, goods, book debts, vehicles and all other movable
assets of the borrower and immovable property at Plot No.K-6, Addl Ambernath
Ind Area, Thane. |
|
Particulars of
the present modification |
Increase of the
following limits Cash Credit
Limit Rs. 15.000
millions Packing Credit
Limit Rs. 25.000 millions Bill
Discounting Rs.
15.000 millions Letter of
Credit Rs. 6.000 millions Bank
Guarantee Rs. 4.000 millions LER (Limit
Equivalent Risk) Rs. 14.000 millions
--------------------- Total
Rs. 79.000 millions |
Fixed Assets:
- Land
- Building
- Plant and Machinery
- Furniture and Fixtures
- Office Equipments
- Vehicles
- Capital Work in Progress
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.09 |
|
|
1 |
Rs.72.82 |
|
Euro |
1 |
Rs.63.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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.