1. Summary Information

 

 

Country

India

Company Name

KOTHARI PRODUCTS LIMITED

Principal Name 1

Mr. Deepak Kothari

Status

Good

Principal Name 2

Mr. Mitesh Kothari

 

 

Registration #

--

Street Address

Pan Parag House 24/19, The Mall, Kanpur – 208001, Uttar Pradesh, India

Established Date

17.09.1983

SIC Code

--

Telephone#

91-512-2312171-74

Business Style 1

Manufactures and exports Pan Parag Pan Masala

Fax #

91-512-2312058

Business Style 2

--

Homepage

--

Product Name 1

--

# of employees

--

Product Name 2

--

Paid up capital

Rs.66,300,000

Product Name 3

--

Shareholders

Individuals - 63.94

Banking

Bank of India

Public Limited Corp.

--

Business Period

29 years

IPO

---

International Ins.

-

Public Enterprise

---

Rating

A (64)

Related Company

Relation Associates

Country India

Company Name

Kothari Detergents Limited

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2011

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

17,014,700,000

Current Liabilities

12,889,500,000

Inventories

480,800,000

Long-term Liabilities

894,000,000 

Fixed Assets

129,400,000

Other Liabilities

5,300,000

Deferred Assets

--

Total Liabilities

13,788,800,000

Invest& other Assets

2,132,500,000

Retained Earnings

5,902,300,000

 

 

Net Worth

5,968,600,000

Total Assets

19,757,400,000

Total Liab. & Equity

19,757,400,000

 Total Assets

(Previous Year)

6,973,300,000

 

 

P/L Statement as of

31.03.2011

(Unit: Indian Rs.)

Sales

13,337,200,000

Net Profit

616,100,000

Sales(Previous yr)

3,487,200,000

Net Profit(Prev.yr)

668,400,000

 


MIRA INFORM REPORT

 

 

Report Date :

12.03.2012

 

IDENTIFICATION DETAILS

 

Name :

KOTHARI PRODUCTS LIMITED

 

 

Registered Office :

Pan Parag House 24/19, The Mall, Kanpur – 208001, Uttar Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

17.09.1983

 

 

Com. Reg. No.:

006254

 

 

Capital Investment / Paid-up Capital :

Rs.66.300 Millions

 

 

CIN No.:

[Company Identification No.]

L16008UP1983PLC006254

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

KNPK01137D

 

 

Legal Form :

A Closely held Public Limited Liability Company

 

 

Line of Business :

Manufactures and exports Pan Parag Pan Masala, Gutkha and Parag Zarda

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 23874400

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track. Financial position of the company appears to be sound. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

LOCATIONS

 

Registered Office :

Pan Parag House 24/19, The Mall, Kanpur – 208001, Uttar Pradesh, India

Tel. No.:

91-512-2312171-74

Fax No.:

91-512-2312058

E-Mail :

rkgupta@kothariproducts.in

Website:

www.kothariproducts.in

 

 

DIRECTORS

 

AS ON 31.03.2011

 

Name :

Mr. Deepak Kothari

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Mitesh Kothari

Designation :

Executive Director

 

 

Name :

Mr. Avinash Gupta

Designation :

Director

 

 

Name :

Mr. Vikas Chaturvedi

Designation :

Director

 

 

Name :

Mr. Pramod Kumar Tandon

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Raj Kumar Gupta

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of promoter and Promoter Group

 

 

1) Indian

 

 

a) Individuals / Hindu Undivided Family

4240645

63.94

b) Bodies corporate

733333

11.06

 

 

 

2) Foreign

 

 

 

 

 

(B) Public Shareholdings

 

 

1) Institutions

 

 

 

 

 

2) Non – Institution

 

 

a) Bodies corporate

666958

10.06

 

 

 

b) Individuals

 

 

i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million

511532

7.71

ii. Individual Shareholders holding nominal share capital in excess Rs.0.100 Million

447.309

6.74

 

 

 

c) Any other

 

 

i) NRI – Repatriable

32173

0.49

ii) Trust

20

--

 

 

 

Total

6631970

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufactures and exports Pan Parag Pan Masala, Gutkha and Parag Zarda

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         Allahabad Bank

·         Canara Bank

·         Bank of India

·         UCO Bank

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Rupee Loan

 

 

Overdraft against Term Deposits from Allahabad Bank

140.000

0.000

Overdraft against Term Deposits from Canara Bank

210.000

0.000

Cash Credit from Bank of India

0.800

0.000

Export Packing Credits from: Allahabad Bank

Bank of India

Canara Bank

UCO Bank

 

120.900

100.000

35.000

98.300

 

0.000

0.000

0.000

0.000

TOTAL

705.000

0.000

 

Note:

Bank of India:

Prime Securities:

First pari passu charge by way of Hypothecation of Stocks and book debts.

 

Collateral Securities:

Exclusive charge by way of equitable Mortgage of Property at Bangalore owned by other Company. Personal guarantee of two directors.

 

Allahabad Bank:

Prime Securities:

Hypothecation charge on current assets of the company both current and future, ranking pari passu with other multiple bankers.

 

Collateral Securities:

Term Deposit worth Rs. 40.000 Millions, equitable mortgage of property at Noida and personal guarantee of two directors.

 

Canara Bank:

Prime Securities:

Hypothecation of Stocks and Book Debts.

 

Collateral Securities:

Term Deposit of Rs. 29.500 Millions and personal guarantee of two directors.

 

UCO Bank:

Prime Securities:

First pari passu charge by way of hypothecation on the entire movable, fixed and current assets of the company (both current and future) with existing Working Capital lenders.

 

Collateral Securities:

Rs. 30.000 Millions by way of collateral in the form of Term Deposit Receipt.

 

Punjab National Bank :

Prime Securities:

Hypothecation charge on current assets of the company.

 

Collateral Securities:

Equitable mortgage of property at Bangalore owned by wholly owned subsidiary.

 

Yes Bank Limited:

Prime Securities:

First pari passu charge over all the current assets and movable fixed assets of the Company (both current and future).

 

Collateral Securities:

Unconditional and irrevocable personal guarantee of two directors.

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

From Directors

189.000

0.000

Bills Discounted from Banks

0.000

78.700

TOTAL

189.000

78.700

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Mehrotra and Mehrotra

Chartered Accountant

Address :

16/49, Civil Lines, Kanpur – 208001, Uttar Pradesh, India

 

 

Associates :

·         Kothari Detergents Limited

·         Ekta Flavours Private Limited

·         Dham Securities Private Limited

·         Lohewala Construction Private Limited

·         Parmy Manufactory Private Limited

·         DK Web-Tech Private Limited

·         Pan Parag India Limited

·         Bhojeshwar Realtors Private Limited

·         Hara Parvati Realtors Private Limited

·         Real Griha Nirman Private Limited

·         Subhadra Realtors Private Limited

·         Sankhya Realtors Private Limited

·         SPPL Hotels Private Limited

·         Tauras Agile Technologies Corporation Private Limited

 

 

Subsidiaries

·         Sukhdham Constructions and Developers Limited

·         Arti Web-Developers Private Limited

·         MK Web-Tech Private Limited

·         KPL Exports Private Limited

·         Kothari Products Singapore Pte. Limited

·         IMK Hotels Private Limited

·         Savitrimata Realtors Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

11000000

Equity Shares

Rs.10/- each

Rs.110.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6631970

Equity Shares

Rs.10/- each

Rs.66.300 Millions

 

 

 

 

 

(Including 4800000 shares of Rs. 10/- each alloted as fully paid up Bonus Shares by Capitalisation of General Reserve)


 

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

66.300

66.300

66.320

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

5902.300

5455.800

4942.005

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

5968.600

5522.100

5008.325

LOAN FUNDS

 

 

 

1] Secured Loans

705.000

0.000

0.000

2] Unsecured Loans

189.000

78.700

0.000

TOTAL BORROWING

894.000

78.700

0.000

DEFERRED TAX LIABILITIES

5.300

7.600

5.200

 

 

 

 

TOTAL

6867.900

5608.400

5013.525

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

129.400

101.400

93.420

Capital work-in-progress

68.700

0.000

0.000

 

 

 

 

INVESTMENT

2063.800

2207.400

3756.648

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

480.800

12.800

4.119

 

Sundry Debtors

7297.000

929.600

19.760

 

Cash & Bank Balances

6493.900

992.900

420.136

 

Other Current Assets

0.000

0.000

0.722

 

Loans & Advances

3223.800

2729.200

1159.507

Total Current Assets

17495.500

4664.500

1604.244

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

7395.500

913.300

57.421

 

Other Current Liabilities

4994.000

3.900

156.607

 

Provisions

500.000

447.700

226.759

Total Current Liabilities

12889.500

1364.900

440.787

Net Current Assets

4606.000

3299.600

1163.457

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6867.900

5608.400

5013.525

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

13337.200

3487.200

965.430

 

 

Other Income

559.300

840.000

156.076

 

 

TOTAL                                     (A)

13896.500

4327.200

1121.506

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases

13237.200

3114.300

466.437

 

 

Excise Duty

0.000

0.000

178.001

 

 

Administrative, Selling and Distribution and Others Expenses

388.100

393.700

336.020

 

 

Increase / (Decrease) In Stock

(468.100)

(8.700)

13.990

 

 

TOTAL                                     (B)

13157.200

3499.300

994.448

 

 

 

 

 

Less

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

739.300

827.900

127.058

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

0.000

0.000

 

 

 

 

 

 

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

739.300

827.900

127.058

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

8.300

12.100

15.986

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

731.000

815.800

111.072

 

 

 

 

 

Less

TAX                                                                  (I)

114.900

147.400

(6.335)

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

616.100

668.400

117.407

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2080.300

1633.400

1606.503

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

61.600

66.900

12.956

 

 

Dividend

145.900

132.600

66.320

 

 

Tax on Dividend

23.700

22.000

11.271

 

BALANCE CARRIED TO THE B/S

2465.200

2080.300

1633.363

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

6710.400

2326.200

536.727

 

TOTAL EARNINGS

6710.400

2326.200

536.727

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Trading Items

10637.900

2159.300

212.844

 

TOTAL IMPORTS

10637.900

2159.300

212.844

 

 

 

 

 

 

Earnings Per Share (Rs.)

92.90

100.78

--

 

QUARTERLY

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

4445.500

8463.600

10272.200

 Total Expenditure

4184.200

8238.400

10038.900

 PBIDT (Excl OI)

261.300

225.200

233.300

 Other Income

5.200

15.300

5.100

 Operating Profit

266.500

240.500

238.400

 Interest

11.700

20.400

14.000

 Exceptional Items

0.000

(542.600)

(514.700)

 PBDT

254.800

(322.500)

(290.300)

 Depreciation

2.000

2.200

2.200

 Profit Before Tax

252.800

(324.700)

(292.500)

 Tax

85.000

(85.00)

0.000

 Reported PAT

167.800

(239.700)

(292.500)

Extraordinary Items       

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

167.800

(239.700)

(292.500)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

4.43

15.45

10.46

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.48

18.85

11.50

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.15

17.11

6.54

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.12

0.15

0.02

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.31

0.26

0.09

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.36

3.42

3.64

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

2011 IN RETROSPECT:

 

The Directors are to report that the Company’s sales turnover during the year under review has been Rs. 13337.200 Millions as against Rs. 3487.200 Millions during the previous financial year. The Profit before tax during the year has decreased to Rs. 739.300 Millions as against Rs. 828.000 Millions in the previous year. The Profit after Tax has also similarly decreased to Rs. 616.100 Millions as against Rs. 668.400 Millions in the previous year.

 

INTERNATIONAL BUSINESS :

 

The Company’s export during the year under review has increased to Rs. 6710.400 Millions as compared to Rs. 2326.200 Millions during the previous year.

 

SUBSIDIARIES :

 

The Company has seven subsidiaries namely Sukhdham Constructions and Developers Limited, Arti Web-Developers Private Limited, MK Web-Tech Private Limited , KPL Exports Private Limited and IMK Hotels Private Limited  as its wholly owned subsidiary Companies and Kothari Products Singapore Private Limited  and Savitrimata Realtors Private Limited as its subsidiary Companies. In accordance with the General Circular No. 2/2011 dated 8th February, 2011 of the Ministry of Corporate Affairs granting general exemption under section 212 of the Companies Act, 1956, the detailed annual accounts and their attachments are not being published. However, the prescribed financial details of the aforesaid subsidiary companies have been disclosed in the consolidated Balance Sheet. The Company hereby undertakes that the Annual Accounts of the subsidiary companies and their related detailed information shall be made available to the shareowners of the holding and subsidiary companies seeking such information at any point of time. The Annual Accounts of the subsidiary companies shall also be kept for inspection by any shareowners at the head office of the holding company and of the subsidiary companies concerned. The holding company shall furnish a hard copy of details of accounts of subsidiaries to any shareowner on demand.

 


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.50.01

UK Pound

1

Rs.79.00

Euro

1

Rs.66.17

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

64

 

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.