MIRA INFORM REPORT

 

 

Report Date :

09.04.2012

 

IDENTIFICATION DETAILS

 

Name :

MAGNA GRAPHICS (INDIA) LIMITED

 

 

Registered Office :

101, C and D, Industrial Estate, Kandivali West, Mumbai- 400067, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

03.03.1948

 

 

Com. Reg. No.:

11-006203

 

 

Capital Investment / Paid-up Capital :

Rs. 8.400 Millions

 

 

CIN No.:

[Company Identification No.]

U17110MH1948PLC006203

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM22735G

 

 

PAN No.:

[Permanent Account No.]

AAACM9281A

 

 

Legal Form :

A closely held Public limited liability company.

 

 

Line of Business :

Subject is engaged in the business of Printing and Publishing.

 

 

No. of Employees :

400 (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 170000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old and established company having satisfactory track. The company has incurred some losses in the current year i.e.2010-2011. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INFORMATION PARTED BY

 

Name :

Ms. Surekha

Designation :

Personal Officer

Contact No.:

91-22-28683738

Date :

07.04.2012

 

 

LOCATIONS

 

Registered Office :

101, C and D, Industrial Estate, Kandivali West, Mumbai- 400067, Maharashtra, India

Tel. No.:

91-22-28683738 / 9279 / 2290/ 7475 / 2479 / 67241234

Fax No.:

91-22-28682905

E-Mail :

magna@vsnl.com

Website :

www.magnagraphicsindia.com

Location :

Owned

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Ms. Nari Motiram Hira

Designation :

Director

Address :

25 Millenium Towers, Opposite American Consulate Breach Candy, Mumbai- 400026, Maharashtra, India

Date of Birth/Age :

26.01.1938

Date of Appointment :

15.04.1986

DIN No.:

00044936

 

 

Name :

Mr. Tomy Thomas

Designation :

Whole- time –director

Address :

206 Krishna Dham, Dewan Kuldip Singh Nagar, Evershine City, Vasai (East), Thane, Maharashtra, India

Date of Birth/Age :

30.05.1960

Date of Appointment :

01.03.1999

DIN No.:

00036923

 

 

Name :

Mr. Mario Ronald Ferreira

Designation :

Director

Address :

C/1/6, Kripa Nagar, Irla Vile Parle (West), Mumbai-400056, Maharashtra, India

Date of Birth/Age :

16.11.1960

Date of Appointment :

23.02.2010

DIN No.:

02958259

 

 

KEY EXECUTIVES

 

Name :

Ms. Surekha

Designation :

Personal Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Names of Shareholders

No. of Shares

Nari M Hira

739598

Nahira Cosmetics Enterprises Private Limited, India

4500

Vikram Nari Hira

15900

Nahira Holding Private Limited, India

40000

Vihira Holdings Private Limited, India

40000

Ashok Devo Dhamankar

1

Ashwin S Varde

1

Total

840000

 

AS ON 30.09.2011

 

Equity Shares Break Up

Percentage

Bodies corporate

10.06

Directors or relatives of Directors

89.94

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of Printing and Publishing.

 

 

Products :

  • Magazines
  • Books
  • Calendars
  • Brochures
  • House Journals
  • Periodicals
  • Annual Reports
  • Offset Printing

 

 

Exports :

 

Products :

Magazines

Countries :

·         New York

·         London

·         Dubai 

 

 

Imports :

 

Products :

·         Paper

·         Machinery

Countries :

·         China

·         Germany

·         Italy

·         Hong Kong

 

 

Terms :

 

Selling :

L/C

 

 

Purchasing :

L/C

 

 

GENERAL INFORMATION

 

Customers :

Commercial

 

 

No. of Employees :

400 (Approximately)

 

 

Bankers :

  • The Shamrao Vithal Co-Op Bank Limited

SVC  Tower, Jawaharla Nehru Road, Vakola, Santacruz (East), Mumbai- 400055, Maharashtra, India

 

·         The Kurla Nagarik Sahakari Bank Limited, Kurla

·         ICICI Bank

·         HDFC Bank Limited

·         Kotak Mahindra Bank Limited

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

1.       From The Shamrao Vithal Co-Operative Bank Limited, Vakola

 

 

a)       Cash Credit Account

[Against hypothecation of stock of Raw Material, Stock in process, Finished Goods, Stores and Spares and Book Debts and also personality guarantee by the promoters and one of the Directors of the Company]

76.418

75.197

b)       Short Term Borrowings from Bank under Buyer’s Credit Arrangement

[Against hypothecation of plant and machinery and personality guarantee by the promoters and one of the Directors of the Company]

0.000

52.288

c)       Term Loan

[Term loans is against hypothecation of plant and machinery and secured against the title deeds in respect of immovable property of Vasai Unit and Industrial Plot No.101, C-D Government Industrial Estate, Kandivli (West), Mumbai. The above loans are also personally guaranteed by the Promoters and one of the Directors of the Company]

(Included interest accrued and due Rs. 0.904 million (last year Rs. 0.536 Million))

67.721

42.879

2.       From The Kurla Nagarik Sahakari Bank Limited, Kurla

 

 

a)       Cash Credit Account

[Against hypothecation of stock of Raw Material, Stock in process, Finished Goods, Stores and Spares and Book Debts and also personality guarantee by the promoters and one of the Directors of the Company] [In cons odium with SVC Bank Limited]

51.790

50.677

 

 

 

Total

195.929

221.041

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

From Directors

20.751

3.000

From Inter Corporate Deposits

0.024

0.024

From Banks

4.498

5.751

From Others

7.050

7.025

 

 

 

Total

32.323

15.800

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S M Kapoor and Company

Chartered Accountant

Address :

Nanabhoy Mansion, 3rd Floor, SIR P.M Road, Mumbai- 400001 Maharashtra, India

Pan No.:

AACFS4278E

 

 

Associates :

  • Magna Publishing Company Limited
  • Magna Publishing Company (UK) Limited
  • Nahira Holdings Private Limited
  • Vihita Holdings Private Limited
  • Perfect Print Products Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs.10/- each

Rs. 10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

840000

Equity Shares

Rs.10/- each

Rs. 8.400 Millions

 

 

 

 

 

Notes:

 

Out of the above shares 9400 Equity shares have been allotted as fully paid pursuant to a contact without payment being received in cash and 642500 Equity shares have been allotted as Bonus Shares by capitalization of Reserve and Surplus.

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

8.400

8.400

8.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

35.605

44.156

42.892

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

44.005

52.556

51.292

LOAN FUNDS

 

 

 

1] Secured Loans

195.929

221.041

193.443

2] Unsecured Loans

32.323

15.800

9.939

TOTAL BORROWING

228.252

236.841

203.382

DEFERRED TAX LIABILITIES

0.000

0.017

2.199

 

 

 

 

TOTAL

272.257

289.414

256.873

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

91.742

100.456

28.071

Capital work-in-progress

0.000

0.000

61.908

 

 

 

 

INVESTMENT

0.637

0.637

0.637

DEFERREX TAX ASSETS

1.630

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

53.212

38.291

109.673

 

Sundry Debtors

166.368

190.056

100.230

 

Cash & Bank Balances

3.010

5.150

0.537

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

41.630

41.941

35.883

Total Current Assets

264.220

275.438

246.323

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

74.993

70.378

41.635

 

Other Current Liabilities

6.032

11.901

31.051

 

Provisions

4.947

4.838

7.380

Total Current Liabilities

85.972

87.117

80.066

Net Current Assets

178.248

188.321

166.257

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

272.257

289.414

256.873

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income from Operations

332.623

422.061

267.601

 

 

Other Income

10.335

18.275

11.123

 

 

TOTAL                                     (A)

342.958

440.336

278.724

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing & Trading Expenses

232.923

239.875

219.388

 

 

Payment to and provision for Employees

48.657

47.272

41.553

 

 

Administrative Expenses

30.082

57.311

40.637

 

 

Increase / (Decrease) in Stocks

(6.173)

56.145

(58.021)

 

 

TOTAL                                     (B)

305.489

400.603

243.557

 

 

 

 

 

Less

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

37.469

39.733

35.167

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

33.558

29.490

17.914

 

 

 

 

 

 

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

3.911

10.243

17.253

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

12.948

11.064

5.823

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(9.037)

(0.821)

11.430

 

 

 

 

 

Less

TAX                                                                  (H)

1.648

(2.182)

2.410

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(7.389)

1.361

9.020

 

 

 

 

 

Less

Tax Paid for earlier years

(1.078)

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

40.965

39.604

30.584

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

32.498

40.965

39.604

 

 

 

 

 

 

EXPORT VALUE

6.922

34.280

8.834

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

4.720

2.087

2.237

 

 

Stores & Spares

0.423

0.000

0.184

 

 

Capital Goods

0.00

0.000

12.800

 

TOTAL IMPORTS

5.143

2.087

15.221

 

 

 

 

 

 

Earnings Per Share (Rs.)

(8.80)

1.62

10.74

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(2.15)

0.31

3.24

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(2.72)

(0.19)

4.27

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(2.53)

(0.22)

4.17

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.21)

(0.02)

0.22

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

7.14

6.16

5.57

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.07

3.16

3.08

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1.       Year of Establishment

Yes

2.       Locality of the firm

Yes

3.       Constructions of the firm

Yes

4.       Premises details

Yes

5.       Type of Business

Yes

6.       Line of Business

Yes

7.       Promoter’s background

Yes

8.       No. of Employees

Yes

9.       Name of person contacted

Yes

10.   Designation of contact person

Yes

11.   Turnover of firm for last three years

Yes

12.   Profitability for last three years

Yes

13.   Reasons for variation <> 20%

------

14.   Estimation for coming financial year

No

15.   Capital in the business

Yes

16.   Details of sister concerns

Yes

17.   Major suppliers

No

18.   Major customers

No

19.   Payments terms

Yes

20.   Export / Import details

Yes

21.   Market information

------

22.   Litigations that the firm / promoter involved

------

23.   Banking Details

Yes

24.   Banking facility details

Yes

25.   Conduct of the banking account

------

26.   Buyer visit details

------

27.   Financials, if provided

Yes

28.   Incorporation details, if applicable

Yes

29.   Last accounts filed at ROC

Yes

30.   Major Shareholders, if available

Yes

 

 

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars

 

31.03.2011

31.03.2010

31.03.2009

 

 

 

 

Sundry Creditors

74.993

70.378

41.635

 

 

OPERATIONS

 

The total income of the company for the year was Rs. 343.000 Millions compared to Rs. 440.300 Millions for the previous year. The Company regularly gets outside jobs of printing and expects to improve the working barring unforeseen circumstances. The Company continues to secure and execute export orders, which has earned foreign exchange to the country.

 

 

FORM 8

 

Corporate identity number of the company

U17110MH1948PLC006203

Name of the company

MAGNA GRAPHICS (INDIA) LIMITED

Address of the registered office or of the principal place of  business in India of the company

101, C and D, Industrial Estate, Kandivali West, Mumbai- 400067, Maharashtra, India

 

This form is for

Modification of charge

Type of charge

Book debts

Movable property (not being pledge)

Particular of charge holder

The Shamrao Vithal Co-Op Bank Limited

SVC  Tower, Jawaharla Nehru Road, Vakola, Santacruz (East), Mumbai- 400055, Maharashtra, India

Nature of instrument creating charge

Third Supplemental Joint Deed of Hypothecation

Date of instrument Creating the charge

16.03.2011

Amount secured by the charge

Rs. 160.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

As per Sanction Letter of the Bank.

 

Terms of repayment

As per Sanction Letter of the Bank.

 

Margin

As may be decided, from time to time, by the Bank.

 

Extent and operation of the charge

To secure the due repayment of Credit facilities aggregating Rs.160.000 Millions, together with interest, costs, charges and expenses thereon, granted by the following Banks to the Company.

 

Other

Total Facilities:

Shamrao Vithal Co-operative Bank Limited (SVCB)

CC: Rs.75.000 Millions

Bank Guarantee: Rs.20.000 Millions ( enhanced by Rs.5.000 Millions)

Letter of Credit Rs.15.000 Millions

-------------------------

Total: Rs. 110.000 Millions

Kurla Nagrik Sahakari Bank (KNSB)

Cash Credit: Rs.50.000 Millions

Total (both Banks): Rs. 160.000 Millions

Short particulars of the property charged (Including location of the property)

The whole of the current assets, namely, Stocks of Raw Materials, Stocks in Process, Semi-Finished and Finished Goods, Consumable Stores and Spares and all other movables(1st Pari Passu Charge)

 

All of the Borrower's present and future, book debts, outstanding monies, receivables, claims, bills, rights to or in moveable properties and assets of the Company.(1st Pari Passu Charge)

 

2nd Pari Passu Charge on all tangible movable machinery, plant, fixtures, fittings, other installation, cranes, furniture, computers and other accessories and all articles.

Charge identification number of the charge to be modified

10145604

Date of instrument modifying the charge

01.02.2010

Particulars of the present modification

By this present modification, the charge shall hold good to secure enhanced credit facilities granted by the Banks to the Company, enhanced from Rs.155.000 Millions to Rs.160.000 Millions, the details of which are as under :

SVCB -- Cash Credit facility of Rs.75.000 Millions, Bank Guarantee of Rs.20.000 Millions (enhanced by Rs.5.000 Millions) and Letter of Credit of Rs.15.000 Millions

 

KNSB -- Cash Credit facility of Rs.50.000 Millions

Therefore, the overall charge now stands modified to Rs.160.000 Million.

 

 

 

FIXED ASSETS

 

  • Factory Building
  • Plant and Machinery
  • Transformer
  • Electrical Installation
  • Computer
  • Furniture and Fixtures
  • Office Equipments
  • Vehicles

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 51.04

UK Pound

1

Rs. 81.08

Euro

1

Rs. 67.39

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

 

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

-

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.