MIRA INFORM REPORT

 

 

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KANAKA INFRATECH LIMITED (w.e.f. 14.03.2007)

 

 

Formerly Known As :

JAYKRISHNA INDUSTRIES LIMITED [TR.CO.]  

 

 

Registered Office :

F/26/27, Ravi Complex, Valia Cross Road, GIDC, Ankleshwar, Bharuch – 393002, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

21.01.1993

 

 

Com. Reg. No.:

04-045153

 

 

Capital Investment / Paid-up Capital :

Rs.171.373 Millions

 

 

CIN No.:

[Company Identification No.]

U31900GJ1993PLC045153

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDM01680A

 

 

PAN No.:

[Permanent Account No.]

AAACJ5870E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing service of Electrical Interior and Civil Contractor.     

 

 

No. of Employees :

25 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (35)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1900000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record.

 

There appear huge external borrowings recorded by the company. Reserves appear to be improving. There appears some dip in the profitability during 2012.

 

However, trade relations are reported as fair. Business is active. Payment terms are reported as slow.

 

Trade relations are reported as fair. Business is active. payment terms are reported as slow

 

The company can be considered for business dealings with great caution. 

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

SHORT TERM NON-FUND BASED LIMIT : ICRA A4

Rating Explanation

Minimal degree of safety and very high credit risk

Date

09.04.2012

 

Rating Agency Name

ICRA

Rating

LONG TERM FUND BASED LIMIT : ICRA B+

Rating Explanation

High degree of safety

Date

09.04.2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

F/26/27, Ravi Complex, Valia Cross Road, GIDC, Ankleshwar, Bharuch – 393002, Gujarat, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

kanakainfratech@gmail.com

Website :

http://www.kanakainfratech.com

 

 

Corporate Office :

Mangalya Premises Co-operative Society Limited, C-Wing, 5th floor, Opposite Fire Brigade Marol, Andheri (East), Mumbai - 400 059, Maharashtra, India

Tel. No.:

91-22-40377100

Fax No.:

91-22-40377127

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Jayakrishna Annayya Shetty

Designation :

Director

Address :

B-13, Pallavi Beach, Angel Ruia Park, Juhu, Mumbai – 400059, Maharashtra, India

Date of Birth/Age :

16.09.1958

Qualification :

Graduate

Date of Appointment :

21.01.1993

DIN No.:

01112235

 

 

Name :

Mrs. Shobha Jayakrishna Shetty

Designation :

Director

Address :

B-13, Pallavi Beach, Angel Ruia Park, Juhu, Mumbai – 400059, Maharashtra, India

Date of Birth/Age :

30.03.1962

Qualification :

Graduate

Date of Appointment :

21.01.1993

DIN No.:

02121133

 

 

Name :

Mr. Umesh Kariyya Shetty

Designation :

Director

Address :

301/302, Laxman Jhoola, J P Road, Andheri (West), Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

23.04.1966

Qualification :

Graduate

Date of Appointment :

18.02.1997

DIN No.:

02631151

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

 

 

 

Jaykrishna A.Shetty

 

3255229

Shobha J. Shetty

 

1294874

Umesh Shetty

 

100

Laxmi Shetty

 

100

Kariya Shetty

 

100

Athith Shetty

 

126850

Shridith Shetty

 

33340

Mohit Alwa

 

26670

Spectra Infratech Private Limited, India

 

10000000

Saijan Trading Private Limited, India

 

1600000

Kripa Multi Trade Private Limited, India

 

400000

Total

 

16737263

 

List of Allotees

 

As on 26.03.2012

 

Names of Allotees

 

No. of Shares Allotted

 

 

 

Lallisales and Marketing Private Limited, India  

 

100000

Gupteshwar Securities Private Limited, India

 

100000

Mansare Trading Private Limited, India

 

100000

Javtic Trading Private Limited, India

 

100000

Total

 

400000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2011

 

Category

 

Percentage

Bodies corporate

 

71.69

Directors or relatives of directors

 

28.15

Other top fifty shareholders

 

0.16

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing service of Electrical Interior and Civil Contractor.     

 

 

GENERAL INFORMATION

 

Customers :

·         Hindustan Petroleum Corporation Limited

·         Indian Oil Corporation Limited

·         Wockhardt Limited

·         Hoechst India Limited

·         Ceat Tyres

·         Maruti Udyog Limited

·         Air India

·         Pepsi India Limited

·         Ambuja Cement Ltd

·         Diamond Dye-Chem Limited

·         Gujarat Narmada Fertilizers Limited

·         Hindustan Lever Limited

·         L and T Powai

·         Larsen and Toubro Limited

·         Gas Authority of India Limited

·         Asian Paints (India) Limited

·         Alsthom

·         Indian Petrochemicals Corporation Limited

·         Rolta India Limited

·         Tributon Exports Limited

·         Cosmos Films Limited

·         SRF Limited

 

 

No. of Employees :

25 (Approximately)

 

 

Bankers :

Corporation Bank, Ward No.16, House No.322, Manipal Branch, Manipal – 576104, Karnataka, India 

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

 

 

 

From State Bank of India A/C 10306511812

506.503

407.286

Working Capital Adhoc Loan SBI A/c 31608191212

0.000

30.000

Car Loan

7.577

0.000

Total

514.080

437.286

 

Working Capital Limit is secured by way of hypothecation of the company’s entire stocks of raw material stocks in process finished good consumable stores spares packing material good in transit covered by documents of title there to in favour of the bank and book debt and further secured by way of collateral security of equitable of mortgage of office premises.  

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Jayantilal K. Shah and Company

Chartered Accountants

Address :

17, Indraprasth Shopping Arcade, 1st Floor, Near Railway Station, GIDC Estate,  Ankleshwar – 393002, Gujarat, India

Tel No.:

91-2646-221696 / 250313

Fax No.:

91-2246-250313

PAN No.:

AJHPS7669B

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

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

 

 

 

 

17137263

Equity Shares

Rs.10/- each

Rs.171.373 Millions

 

 

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

171.373

165.373

47.373

2] Share Application Money

80.000

50.595

68.595

3] Reserves & Surplus

234.662

141.000

102.612

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

486.035

356.968

218.580

LOAN FUNDS

 

 

 

1] Secured Loans

514.080

437.286

319.093

2] Unsecured Loans

130.020

71.294

51.563

TOTAL BORROWING

644.100

508.580

370.656

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1130.135

865.548

589.236

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

61.072

58.932

58.820

Capital work-in-progress

247.787

0.000

0.000

 

 

 

 

INVESTMENT

1.990

1.999

2.026

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

225.779
183.830

153.354

 

Sundry Debtors

793.814
735.768

526.384

 

Cash & Bank Balances

15.408
0.869

1.012

 

Other Non-Current Assets

8.549
0.000

0.000

 

Other Current Assets

5.912
0.000

0.000

 

Loans & Advances

160.101
312.337

105.966

Total Current Assets

 1209.563
1232.804

786.716

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

358.907
405.737

240.649

 

Other Current Liabilities

6.625
4.962

4.145

 

Provisions

24.745
17.500

13.548

Total Current Liabilities

390.277
428.199

258.342

Net Current Assets

819.286
804.605

528.374

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.012

0.016

 

 

 

 

TOTAL

1130.135

865.548

589.236

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

2163.016

1868.088

1361.486

 

 

Other Income

13.989

13.510

11.253

 

 

TOTAL                                     (A)

2177.005

1881.598

1372.739

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

2011.567

1752.244

1275.030

 

 

Employee Benefits

11.307

--

---

 

 

Other Expenses

26.995

--

--

 

 

Manufacturing service costs

--

0.691

4.050

 

 

Employee related expenses

--

6.730

7.887

 

 

Administrative selling other expenses

--

15.171

16.491

 

 

TOTAL                                     (B)

2049.869

1774.836

1303.458

 

 

 

 

 

Less

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

127.136

106.762

69.281

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

80.356

45.794

25.191

 

 

 

 

 

 

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

46.780

60.968

44.090

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3.266

1.702

1.852

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

43.514

59.266

42.238

 

 

 

 

 

Less

TAX                                                                  (H)

14.447

18.398

13.565

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

29.067

40.868

28.674

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.70

2.47

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

1.34

2.17

2.09

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.01

3.17

3.10

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.42

4.59

5.00

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.09

0.17

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.33

2.62

2.88

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.10

2.88

3.05

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

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

No

10]

Designation of contact person

No

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

No

17]

Major suppliers

No

18]

Major customers

Yes

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

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

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

UNSECURED LOAN DETAILS

(Rs. In Millions)

 

As on

31.03.2012

As on

31.03.2011

 

 

 

Term Loans from Banks

130.020

71.294

Total

130.020

71.294

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U31900GJ1993PLC045153

Name of the company

KANAKA INFRATECH LIMITED

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

F/26/27, Ravi Complex, Valia Cross Road, GIDC, Ankleshwar, Bharuch – 393002, Gujarat, India

E-mail Id : kanakainfratech@gmail.com

This form is for

Creation of charge

Type of charge

Floating charge

Others (Personal Guarantee)

Particular of charge holder

Corporation Bank, Ward No.16, House No.322, Manipal Branch, Manipal – 576104, Karnataka, India

E-mail Id : cs@seil.in  

Nature of instrument creating charge

Loan agreement dated 01/03/2012 executed between subject (borrower) for availing loan of Rs.10.000 Millions from S. E. Investments Limited and personal guarantee of Directors in favour of borrower company given by Mr. Jayakrishna Annayya Shetty and Mrs. Shobha Shetty.

Date of instrument Creating the charge

01.03.2012

Amount secured by the charge

Rs.10.000 Millions

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

Rate of Interest

Rate of Interest charged at the flat rate of 10.75% p.a. or such modified rates as indicated by the Company.

 

Terms of Repayment

As per the Agreement.

 

Extent and Operation of the charge

The charge operates as continuing security for repayment of all dues, costs, interest, charges, late fees, damages by subject (borrower) to S. E. Investments Limited. In case of default by subject (borrower) their personal guarantors would be liable to pay the dues of S. E. Investments Limited.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Personal Guarantee of Directors of Borrower Company i.e. Mr. Jayakrishna Annayya Shetty and Mrs. Shobha Shetty.

 

FIXED ASSETS

 

·         Land and Building

·         Machinery and Tools

·         Air Conditioner

·         Office Automation

·         Computers

·         Furniture and Fittings

·         Motor 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 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.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.79

 

 

INFORMATION DETAILS

 

Report Prepared by :

BSN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

35

 

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.