MIRA INFORM REPORT

 

 

Report Date :

31.01.2013

 

IDENTIFICATION DETAILS

 

Name :

SIDHIVINAYAK COTSPIN LIMITED

 

 

Registered Office :

Vill. Fatehpur Patiala Road, Samana – 147101, Punjab 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

16.08.2004

 

 

Com. Reg. No.:

16-027403

 

 

Capital Investment / Paid-up Capital :

Rs.69.996 Millions

 

 

CIN No.:

[Company Identification No.]

U18100PB2004PLC027403

 

 

PAN No.:

[Permanent Account No.]

AAICS3095A

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Superior Quality yarn.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 390000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. Reserves of the company appears to be low. 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 – 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

 

 

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.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. S.P. Garg

Designation :

Director

Contact No.:

91-9814040845

Date :

24.01.2013

 

 

LOCATIONS

 

Registered Office :

Vill. Fatehpur Patiala Road, Samana – 147101, Punjab, India

Tel. No.:

91-1764-228411/ 224411

Mobile No.:

91-9814040845 (Mr. S.P. Garg)

Fax No.:

91-1764-228411

E-Mail :

mittalhrca@yahoo.co.in

Website :

http://www.sidhivinayakcotspin.com/

 

 

DIRECTORS

 

As on: 26.09.2012

 

Name :

Mr. Rajinder Kumar

Designation :

Whole-time director

Address :

358, Sbop Street, Samana  - 147101, Patiala, Punjab

Date of Birth :

14.02.1964

Date of Appointment :

16.08.2004

DIN No.:

00128297

 

 

Name :

Mr. Gora Lal

Designation :

Whole-time director

Address :

Gobindpura Basti, Sangrur – 148001, Punjab India

Date of Birth :

22.03.1958

Date of Appointment :

16.08.2004

DIN No.:

00029435

 

 

Name :

Mr. Sukhdarshan Pal

Designation :

Whole-time director

Address :

Gobindpura Basti, Sangrur – 148001, Punjab India

Date of Appointment :

16.08.2004

DIN No.:

00029459

 

 

Name :

Mr. Sushpal Garg

Designation :

Whole-time director

Address :

Gobindpura Basti, Sangrur – 148001, Punjab India

Date of Birth :

04.11.1975

Date of Appointment :

16.08.2004

DIN No.:

00029479

 

 

Name :

Mr. Vipan Kumar

Designation :

Whole-time director

Address :

Gobindpura Basti, Sangrur – 148001, Punjab India

Date of Birth :

23.07.1977

Date of Appointment :

16.08.2004

DIN No.:

00029512

 

 

MAJOR SHAREHOLDERS

 

As on: 26.09.2012

 

Names of Shareholders

 

No. of Shares

Sh. Rajinder Gupta S/o Sh. Chanan Ram

 

479400

Sh. Gora Lai Singla S/o Sh. Atma Ram

 

336900

Sh. Sukhdarshan Pal Singla S/o Sh. Atma Ram

 

345100

Dr. Sushpal Garg S/o Sh. Tarsem Chand

 

482800

Sh. Vipan kumar Garg S/o Sh. Tarsem Chand

 

333600

Sh. Chanan Ram Gupta S/o Sh. Gopi Ram

 

67500

Sh. Tarsem Chand Garg S/o Sh. Kaur Sain

 

315000

Smt. Angrej Kaur W/o Sh. Pritpal Singh

 

4000

Sh. Ajit Singh S/o Sh. Surat Singh

 

21250

Sh. Akhil Kumar S/o Sh. V.N. Goyal

 

21250

Ms. Amarjit Kaur D/o Sh. Jagmail Singh

 

4000

Sh. Aneet Singh S/o Sh. Chaman Lai

 

21250

Sh. Anil kumar Dhingra S/o Sh. Ladhu Ram

 

30000

Sh. Ashok Kumar S/o Sh. Maman Chand

 

25000

Sh. Ashok Kumar S/o Sh. Fakir Chand

 

25000

Sh. Bagga Singh S/o Sh. Mohinder Singh

 

4500

Sh. Bahadar Singh S/o Sh. Karnail Singh

 

30000

Sh. Baljit Singh S/o Sh. Mohinder Singh

 

10000

Sh.Balraj Jain S/o Sh. B.S. Jain

 

25000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 26.09.2012

 

Category

Percentage

Directors or relatives of Directors

50.00

Other top fifty shareholders

30.00

Others

20.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Superior Quality yarn.

 

 

Products :

·         Cotton Yarn

·         Organic Cotton Yarn

·         Natural Cotton Yarn

·         Poly Cotton Yarns

·         Pure Cotton Yarns

·         Viscose Cotton Yarns

·         Cotton Blended Yarns

·         Weaving Cotton Yarns

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

State Bank Of India, Patiala Gate, Sangrur - 148001, Punjab, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Long Term Borrowings

 

 

Term loans banks secured

20.259

31.742

Short Term Borrowings

 

 

Working capital loans banks secured

58.223

56.245

Total

78.482

87.987

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

H. R. Mittal and Company

Chartered Accountants

Address :

Tehsil Road, Samana – 147101, Punjab, India

Tel. No.:

91-1764-220959/ 500159

PAN.:

AABFH4801M

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7000000

Equity Shares

Rs.10/- each

Rs.70.000 Millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6999600

Equity Shares

Rs.10/- each

Rs.69.996 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

69.996

69.996

69.996

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

28.606

26.292

22.898

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

98.602

96.288

92.894

LOAN FUNDS

 

 

 

1] Secured Loans

78.482

87.987

103.001

2] Unsecured Loans

3.444

0.000

0.000

TOTAL BORROWING

81.926

87.987

103.001

DEFERRED TAX LIABILITIES

5.751

5.996

6.249

 

 

 

 

TOTAL

186.279

190.271

202.144

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

97.722

97.333

110.384

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

77.025

64.509

68.232

 

Sundry Debtors

14.781

13.987

8.808

 

Cash & Bank Balances

3.935

7.773

8.162

 

Other Current Assets

9.631

22.282

8.069

 

Loans & Advances

10.524

7.194

14.960

Total Current Assets

115.896

115.745

108.231

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

9.709

6.493

6.493

 

Other Current Liabilities

14.234

12.273

0.781

 

Provisions

3.396

4.041

9.197

Total Current Liabilities

27.339

22.807

16.471

Net Current Assets

88.557

92.938

91.760

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

186.279

190.271

202.144

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

353.031

358.343

280.886

 

 

Other Income

1.768

2.402

26.386

 

 

TOTAL                                     (A)

354.799

360.745

307.272

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

334.373

270.290

254.478

 

 

Changes in inventories of finished goods, work-in-progress and

stock-in-trade

(55.093)

11.212

 

 

 

Employee benefit expense

3.820

3.183

 

 

 

Other expenses

44.634

48.209

 

 

 

TOTAL                                     (B)

327.734

332.894

254.478

 

 

 

 

 

Less

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

27.065

27.851

52.974

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

10.484

8.397

9.296

 

 

 

 

 

 

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

16.581

19.454

43.498

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

13.230

14.211

16.392

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3.351

5.243

27.106

 

 

 

 

 

Less

TAX                                                                  (H)

1.035

1.849

8.181

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2.316

3.394

18.925

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.33

0.48

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.65

0.94

6.16

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.94

1.46

9.65

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.57

2.46

12.40

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.03

0.05

0.29

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.83

0.91

1.11

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.24

5.07

6.57

 

 

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

No

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

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

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

No

 

UNSECURED LOAN:

 

Particulars

As on

31.03.2012

As on

31.03.2011

Long Term Borrowings

 

 

Other loans and advances

3.444

0.000

Total

3.444

0.000

 

 

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company

U18100PB2004PLC027403

Name of the company

SIDHI VINAYAK COTSPIN LIMITED

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

Patiala, Roadsamana, District Patiala, Punjab, India

mittalhrca@yahoo.co.in

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

90174504

Type of charge

·         Immovable Property

·         Book Debts

·         Movable Property (Not Being Pledge)

·         Others (All types of stocks of the company)

Particular of charge holder

State Bank Of India, Patiala Gate, Sangrur - 148001, Punjab, India

sbi.01759@sbi.co.in

Nature of instrument creating charge

Supplemental agreement of loan for increase in the overall limit and Letter regarding grant of individual limits within the overall limit.

Date of instrument Creating the charge

20.07.2011

Amount secured by the charge

Rs.147.200 Millions

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

Rate of Interest

C/C at 2.40% above BR i.e. 11.65%, Adhoc C/c @ 6.75% above BR i.e. 16.00% , TL-1, 2,3 and 4  at 2.90% above BR i.e. 12.15%. Present base rate is 9.25% p.a.

 

Terms of Repayment

C/c and adhoc limit of Rs. 75.000 Million repayable on demand. TL-1 of Rs. 59.000 Millions (O/s Rs. 7.600 Millions) repayable in 25 quarters (First 24 of Rs. 2.400 Milliions  each and the last of Rs. 1.400 Millions) + Intt. w.e.f. Mar., 2006. TL-2 of Rs. 57.500 Millions (O/s Rs. 33.300 Millions) repayable in 24 quarters of Rs. 2.4000 Millions each + Intt. w.e.f. Dec., 2008. TL-3 of Rs. 10.000 Millions repayable in 17 quarters of Rs. 0.588 Million each + Intt. w.e.f. Sep., 2011. TL-4 of Rs. 2.500 Millions repayable in 16 quarters of Rs. 0.156 Millions each w.e.f. Mar. 2012.

 

Margin

Stocks - 25%, Book Debts 40%,Term loan (Old) - 40%  and Term loan (New) 27.33%.

 

Extent and Operation of the charge

100%

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

·         First charge on all the present and future fixed assets of the company including P and M and equitable mortgage of factory land and building measuring 24550 Sq. Yd. situated at Patiala Road, Samana.

·         Hypothecation  of all  types of  Raw  materials,  stock in  process, Finished  goods, Stores  and spares, Receivables and other current assets of the company.

Date of instrument modifying the charge

19.03.2011

Particulars of the present modification

T/L-3 of Rs. 10.000 Millions and T/L-4 of Rs. 2.500 Millions revalidated, One time FLC 1 and FLC 2 enhanced to Rs. 14.200 Millions and Rs. 3.600 Millions respectively. Existing term loans 1 and 2 of Rs. 59.000 Millions and 57.500 Millions reduced to present outstanding of Rs. 7.600 Millions and Rs. 33.300 Millions. An adhoc limit of Rs. 10.000 Millions sanctioned in addition to regular C/c limit of Rs. 65.000 Millions. Bank Gurantee limit of Rs. 1.000 Millions remains the same.

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant and equipment

·         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 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.53.70

UK Pound

1

Rs.84.35

Euro

1

Rs.72.21

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

RAJ

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

5

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

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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.