MIRA
INFORM REPORT
|
Report Date : |
10.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
NSL COTTON CORPORATION PRIVATE LIMITED |
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Registered
Office : |
NSL ICON, 8-2-684/2/A, Plot No. 1 to 4, 4th Floor, Road No.
12, Banjara Hills, Hyderabad 500034, Andhra Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
17.05.2007 |
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Com. Reg. No.: |
054034 |
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Capital
Investment / Paid-up Capital : |
Rs.211.100 millions |
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CIN No.: [Company Identification
No.] |
U17121AP2007PTC054034 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDN02953G |
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PAN No.: [Permanent Account No.] |
AACCN5275B |
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Legal Form : |
Private Limited Liability Company
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Line of Business
: |
Manufacturer of Cotton and Horticultural Products |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 746524 |
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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. There appears
some 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 with some
cautions. |
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 |
|
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
|
Registered Office : |
NSL ICON, 8-2-684/2/A, Plot No. 1 to 4, 4th Floor, Road No.
12, Banjara Hills, Hyderabad 500034, Andhra Pradesh, India |
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Tel. No.: |
91-40-30514444 |
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Fax No.: |
91-40-23327919 |
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E-Mail : |
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Website : |
DIRECTORS
AS ON 24.09.2010
|
Name : |
Mr. Mandava Prabhakar Rao |
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Designation : |
Director |
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Date of Birth/Age : |
19.01.1959 |
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Date of Appointment : |
17.05.2007 |
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DIN No.: |
00009650 |
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Name : |
Mrs. Mandava Ashapriya |
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Designation : |
Director |
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Date of Birth/Age : |
19.09.1962 |
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Date of Appointment : |
17.05.2007 |
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DIN No.: |
01199936 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 24.09.2010
|
Names of Shareholders |
No. of Shares |
|
Mandava Holdings Private Limited, Delhi, India |
21109900 |
|
M. Asha Priya (Nominee of NSL Cotton Corporation Limited) |
100 |
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Total |
21110000 |
AS ON 28.02.2011
|
Names of Shareholders |
No. of Shares |
|
Mandava Holdings Private Limited, Delhi, India |
22000000 |
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Total |
22000000 |
AS ON 24.09.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
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Category |
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|
|
Bodies corporate |
|
99.99 |
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Directors or relatives of directors |
|
0.01 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cotton and Horticultural Products |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
Indian Bank, Surabhi Arcade, Bank Street, Koti,
Hyderabad 500001, Andhra Pradesh, India ·
Bank of India, Hyderabad Corporate Banking
Branch, 10-1-119/2, PTI Building, 2nd Floor, A C Guarde, Hyderabad
500004, Andhra Pradesh, 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 : |
Brahmayya and Company Chartered Accountant |
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Address : |
Flat No. 403 Goldan Green Apartments, Irrum Manzil, Hyderabad 500082,
Andhra Pradesh, India |
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Holding Company: |
Mandava Holdings Private Limited, Delhi, India CIN No.: U74120DL2008PTC175265 |
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Subsidiaries : |
·
NCC Shriram Fibers Private Limited CIN No.: U17200MH2008PTC183838 ·
NCC Abhinandan Cotton Private Limited CIN No.:U17200MH2007PTC173014 ·
NCC Cj Cotton Private Limited CIN No.:U17111MH2007PTC172499 ·
NCC Ganapathi Cotton Private Limited CIN No.:U17111MH2007PTC172500 ·
NCC Jay Laxmi Fibers Private Limited CIN No.:U17111MH2007PTC172497 ·
NCC Matoshri Cotton Private Limited CIN No.:U17111MH2007PTC172498 ·
NCC Narsinh Cotton Private Limited CIN No.:U17121MH2007PTC173124 ·
NCC Radhakrishna Cotton Private Limited CIN No.:U17121MH2007PTC172490 NCC Santosh Fibers Private Limited CIN No.:U17111MH2007PTC172496 ·
NCC Shri Cotton Private Limited CIN No.:U17200MH2007PTC173157 ·
NCC Usha Ginning Mills Private Limited CIN No.:U17121AP2007PTC054726 ·
NCC Venkateswara Cotton Fibers Private Limited CIN No.:U01405AP2007PTC054727 |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs. 10 each |
Rs.250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21110000 |
Equity Shares # |
Rs. 10 each |
Rs.211.100 millions |
# The entire share capital is held by Nuziveedu
Seeds Private Limited, the holding company.
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 |
211.100 |
40.100 |
40.100 |
|
|
2] Share Application Money |
0.000 |
171.000 |
141.207 |
|
|
3] Reserves & Surplus |
0.000 |
1.984 |
0.067 |
|
|
4] (Accumulated Losses) |
(24.469) |
0.000 |
0.000 |
|
|
NETWORTH |
186.631 |
213.084 |
181.374 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
406.818 |
374.508 |
143.689 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
406.818 |
374.508 |
143.689 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
593.449 |
587.592 |
325.063 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10.091 |
11.322 |
0.776 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
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INVESTMENT |
132.035 |
124.256 |
0.720 |
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DEFERREX TAX ASSETS |
8.235 |
0.217 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
349.797
|
0.000 |
148.936 |
|
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Sundry Debtors |
36.316
|
241.171 |
29.057 |
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|
Cash & Bank Balances |
15.013
|
2.991 |
23.088 |
|
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Other Current Assets |
19.025
|
6.979 |
7.645 |
|
|
Loans & Advances |
174.157
|
249.430 |
136.161 |
|
Total
Current Assets |
594.308
|
500.571 |
344.887 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
53.383
|
0.628 |
0.431 |
|
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Other Current Liabilities |
95.421
|
47.116 |
21.147 |
|
|
Provisions |
2.416
|
1.363 |
0.185 |
|
Total
Current Liabilities |
151.220
|
49.107 |
21.763 |
|
|
Net Current Assets |
443.088
|
451.464 |
323.124 |
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.333 |
0.443 |
|
|
|
|
|
|
|
|
TOTAL |
593.449 |
587.592 |
325.063 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
707.482 |
565.276 |
59.185 |
|
|
|
Revenue from Services |
1.142 |
0.531 |
0.000 |
|
|
|
Other Income |
1.964 |
11.477 |
0.001 |
|
|
|
TOTAL (A) |
710.588 |
577.284 |
59.186 |
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Cotton Procurement Expenses |
832.270 |
3.447 |
193.210 |
|
|
|
Cost of Trading Goods Sold |
172.350 |
337.825 |
0.000 |
|
|
|
Employees Remuneration |
7.002 |
12.049 |
0.422 |
|
|
|
Increase/(Decrease) in Finished Goods |
(349.795) |
148.935 |
(148.935) |
|
|
|
Processing Charges |
34.853 |
2.644 |
8.525 |
|
|
|
Office Expenses |
9.479 |
16.255 |
3.985 |
|
|
|
Preliminary Expenses Written off |
0.332 |
0.110 |
0.000 |
|
|
|
TOTAL (B) |
706.491 |
521.265 |
57.207 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4.097 |
56.019 |
1.979 |
|
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|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
38.602 |
51.366 |
1.572 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(34.505) |
4.653 |
0.407 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1.263 |
1.428 |
0.135 |
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|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
(35.768) |
3.225 |
0.272 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(9.315) |
1.308 |
0.205 |
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
(26.453) |
1.917 |
0.067 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1.984 |
0.067 |
-- |
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|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(24.469) |
1.984 |
0.067 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(5.22) |
0.48 |
0.02 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(3.72)
|
0.33 |
0.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.05)
|
0.57 |
0.45 |
|
|
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.91)
|
0.63 |
0.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.19)
|
0.02 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.99
|
1.98 |
0.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.93
|
10.19 |
15.84 |
LOCAL AGENCY FURTHER INFORMATION
FUTURE PLANS
For the year
2010-11, the company has evolved a multi pronged strategy to sustain the
targeted sales and profits as under:
·
To integrate operations by establishing Integrated Cotton Farming
involving over 0.300 millions farmers by providing Quality Inputs, Credit
Inputs, and Technical Advisory Services to the farmers so that the
profitability of the farmers is enhanced.
·
To procure raw cotton as per market prices as and when the prices for
finished products are remunerative.
·
To buy processed cotton from CCI or its dealers under the volume discount
schemes and also from open market, and marketing the same to domestic and
overseas buyers as a trading operation.
·
Marketing of Hybrid Cotton Seeds, as we have obtained necessary Licenses
for trading in Cotton Seeds business.
·
The company is evolving strategies to export lint bales to countries like
Bangladesh, Turkey and China.
·
To purchase long staple cotton from the non-conventional areas such as
Satara, Sangli etc., and Gin the same in nearby units.
As all the units
are fully operational, the company is planning to utilize the capacity to the
maximum possible.
NOTE:
Registered office of the company has been shifted from NSL ICON,
8-2-648, Plot No. 1 to 4, 4th Floor, Road No. 12, Banjara Hills,
Hyderabad 500034, Andhra Pradesh, India to the present address w.e.f.
11.10.2007
FIXED ASSETS:
·
Land
·
Plant and Machinery
·
Electrical Equipment
·
Office Equipment
·
Furniture and Fixtures
·
Computers
·
Laboratory Equipment
·
Vehicles
·
Computer Software
FORM 8
|
Corporate identity
number of the company |
U17121AP2007PTC054034 |
|
Name of the
company |
NSL COTTON CORPORATION PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
NSL ICON, 8-2-684/2/A, Plot No. 1 to 4, 4th Floor, Road No.
12, Banjara Hills, Hyderabad 500034, Andhra Pradesh, India |
|
This form is for |
Creation of
charge |
|
Type of charge |
Book debts Others |
|
Particular of
charge holder |
Bank of India, Hyderabad Corporate Banking Branch, 10-1-119/2, PTI
Building, 2nd Floor, A C Guarde, Hyderabad 500004, Andhra Pradesh,
India Email: nageshwar.p@bankofindia.com
|
|
Nature of
instrument creating charge |
1. Joint Deed of
Hypothecation 2. Working
Capital Consortium Agreement 3. Interse
Agreement 4. Undertaking 5. Letter of
Undertakings 6. Demand
Promissory Notes 7. Revival Letter |
|
Date of
instrument Creating the charge |
14.08.2008 |
|
Amount secured by
the charge |
Rs. 1000.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest BANK OF INDIA:- On Cash Credit:
0.25% below BPLR, Presently 13.75%, on EPC and Foreign Bills Negotiated: As
prevalent at the relevant date. INDIAN BANK:- On Cash Credit:
At BPLR Presently 14%, On EPC: BPLR-2.5% presently 11.5%, On Foreign Bills
Negotiated: As prevalent at the relevant date. Terms of repayment Repayable on
Demand Margin On Stocks: 25% On Book Debts:
40% Extent and operation of the charge Pari passu first
charge on entire current assets of the Company including Book-Debts and Stock
of Raw Materials, Stock in Process and finished goods |
|
Short particulars
of the property charged (Including location of the property) |
Pari passu first
charge on entire current assets of the Company including in particular
hypothecation of Book-Debts and Stock of Raw Materials, Stock in Process and
finished goods, stored in the specified 14 Ginning Mills and godowns which
shall be notified to the consortium from time to time - to be shared with
Indian Bank being leader of consortium. |
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.46.38 |
|
|
1 |
Rs.74.01 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.