|
Report Date : |
11.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
J. K. COTTON LIMITED |
|
|
|
|
Formerly Known
As : |
JUGGILAL KAMLAPAT COTTON SPINNING AND WEAVING MILLS
COMPANY LIMITED
|
|
|
|
|
Registered
Office : |
Kamla Tower, Kanpur - 208001, Uttar Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
24.10.1924 |
|
|
|
|
Com. Reg. No.: |
20-000275 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 237.350 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111UP1924PLC000275 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
KNPJ01136C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Cotton Fabrics, Textiles and also Real
Estate Developers. |
|
|
|
|
No. of Employees
: |
Not Available |
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 1270000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a moderate track record. The financial position of the company is below average. However, trade
relations are reported as fair. Business is active. Payment terms are slow
but correct. The company can be considered for business dealings with some
caution. Note: The Company’s Shares are not traded on BSE in the last 30 Days. |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in investment
as well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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 : |
Kamla Tower, Kanpur - 208001, Uttar Pradesh, India |
|
Tel. No.: |
91-512-3067392 |
|
Fax No.: |
91-512-3067383 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
Marketing
Office :
|
Kalpi Road, Jarib Chowki, Kanpur - 208001, Uttar Pradesh,
India |
|
|
|
|
Cotton Textile Unit
: |
84/50, Kalpi Road, Kanpur, Uttar Pradesh, India |
|
|
|
|
Factory : |
84/29, Kalpi Road, Kanpur, Uttar Pradesh, India |
|
|
|
Delhi Office
:
|
19, DDA, Community Center, Okhla Phase-1, New Delhi –
110020, India |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Dr. Gaur Hari Singhania |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Yadupati Singhania |
|
Designation : |
Vice-Chairman |
|
Qualification : |
B. Tech from IIT, Kanpur |
|
|
|
|
Name : |
Mr. Govind Hari Singhania |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nidhipati Singhania |
|
Designation : |
Director |
|
Qualification : |
Master of Commerce |
|
|
|
|
Name : |
Dr. K. B. Agarwal |
|
Designation : |
Director |
|
Qualification : |
M. Com., LL.B., Ph.D., AICWA, FCS |
|
Experience : |
He has vast experience in the fields of Finance, Accounts and Capital Market. |
|
|
|
|
Name : |
Mr. Jagendra Swarup |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Anil Gupta |
|
Designation : |
Director (Nominee of BIFR) |
|
|
|
|
Name : |
Mr. K. C. Aggarwal |
|
Designation : |
Director (Nominee of AFL) |
|
|
|
|
Name : |
Dr. J. N. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Gupta |
|
Designation : |
Director |
|
Qualification : |
B.BM and FCA |
KEY EXECUTIVES
|
Name : |
Mr. Abhishek Singhania |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. S. K. Kedia |
|
Designation : |
Chief Finance Officer and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Category
wise Shareholding-Equity as on 31st March, 2013
|
Category |
No. of Shares held |
% of Shareholding |
|
Promoters
and Promoter Group |
21723410 |
92.14 |
|
Mutual
Funds/UTI |
- |
- |
|
Financial
Institutions/Banks |
6239 |
0.03 |
|
Insurance
Companies |
99142 |
0.42 |
|
FIIs |
- |
- |
|
Bodies
Corporate |
427745 |
1.81 |
|
Individuals |
1120214 |
4.75 |
|
Others |
201000 |
0.85 |
|
Total |
23577750 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cotton Fabrics, Textiles and also Real Estate
Developers. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
· Punjab National Bank · Bank of India · Yes Bank Limited · Oriental Bank of Commerce · Allahabad Bank · ICICI Bank Limited · IDBI Bank Limited · State Bank of India |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. L. Tandon and Company Chartered Accountants |
|
|
|
|
Enterprises significantly influenced by Key Management Personnel or
their Relatives : |
· Jaykay Enterprises Limited · J.K. Cement Limited ·
Yadu International Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24500000 |
Equity Shares |
Rs. 10/- each |
Rs. 245.000 Millions |
|
5000 |
6% Cumulative Preference Shares |
Rs. 100/- each |
Rs. 0.500 Million |
|
6000 |
8.5% Cumulative Preference Shares |
Rs. 100/- each |
Rs. 0.600 Million |
|
4720 |
8.5% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 0.472 Million |
|
34280 |
14% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 3.428 Millions |
|
|
Total |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23577750 |
Equity Shares |
Rs. 10/- each |
Rs. 235.778
Millions |
|
5000 |
6% Cumulative Preference Shares |
Rs. 100/- each |
Rs. 0.500
Million |
|
6000 |
8.5% Cumulative Preference Shares |
Rs. 100/- each |
Rs. 0.600
Million |
|
4720 |
8.5% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 0.472
Million |
|
|
Total |
|
Rs. 237.350
Millions |
|
(a) The
reconciliation of the number of shares outstanding is set out below - |
Equity No.
of Shares |
Preference No.
of Shares |
|
Shares at the beginning of the year |
23577750 |
15720 |
|
Shares at the end of the year |
23577750 |
15720 |
(b) Preference shares of Rs. 1.572 Millions will be due for redemption
on 30.09.2014.
(c) Details of Shareholders
holding more than 5% Shares of the Company -–
|
EQUITY SHARES |
31.03.2013 |
|
|
|
% of holding |
No. of Shares |
|
Yadu International Limited |
7.30 |
1720000 |
|
Sushila Devi Singhania |
8.04 |
1895000 |
|
Gaur Hari Singhania |
8.33 |
1963246 |
|
Kavita Singhania |
9.97 |
2350000 |
|
Yadupati Singhania |
17.28 |
4075000 |
|
Jaykay Enterprises Limited |
40.34 |
9510360 |
|
PREFERENCE SHARES |
|
|
|
1. 6% Cumulative
Preference Shares of Rs. 100/- each (i) M/s Life Insurance Corporation of India |
100 |
5000 |
|
2. 8.5%
Cumulative Preference Shares of Rs. 100/- each (i) National Insurance Company Limited |
66.67 |
4000 |
|
(ii) Surya Commercials Limited |
31.25 |
1875 |
|
3. 8.5%
Cumulative Redeemable Preference Shares of Rs. 100/- each (i) Lala Kailashpat Singhania Sports Foundation |
5.28 |
249 |
|
(ii) Shri Lakshmipat Singhania Education Foundation |
8.41 |
397 |
|
(iii) Surya Commercials Limited |
75.00 |
3540 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
237.350 |
237.350 |
237.350 |
|
(b) Reserves & Surplus |
80.595 |
386.078 |
549.400 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
317.945 |
623.428 |
786.750 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
440.000 |
200.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c)
Other long term liabilities |
0.241 |
0.246 |
2.446 |
|
(d)
long-term provisions |
27.495 |
24.296 |
25.130 |
|
Total
Non-current Liabilities (3) |
467.736 |
224.542 |
27.576 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1250.065 |
948.536 |
1022.065 |
|
(b)
Trade payables |
81.275 |
35.121 |
18.720 |
|
(c)
Other current liabilities |
178.005 |
66.777 |
30.722 |
|
(d)
Short-term provisions |
5.343 |
6.416 |
7.959 |
|
Total
Current Liabilities (4) |
1514.688 |
1056.850 |
1079.466 |
|
|
|
|
|
|
TOTAL |
2300.369 |
1904.820 |
1893.792 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
453.401 |
171.311 |
48.426 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
79.770 |
50.064 |
3.300 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.912 |
0.987 |
0.989 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
39.976 |
73.713 |
7.587 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
574.059 |
296.075 |
60.302 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1530.693 |
1466.974 |
1488.889 |
|
(c)
Trade receivables |
96.731 |
26.801 |
19.122 |
|
(d)
Cash and cash equivalents |
58.222 |
78.304 |
273.610 |
|
(e)
Short-term loans and advances |
35.114 |
34.260 |
45.144 |
|
(f)
Other current assets |
5.550 |
2.406 |
6.725 |
|
Total
Current Assets |
1726.310 |
1608.745 |
1833.490 |
|
|
|
|
|
|
TOTAL |
2300.369 |
1904.820 |
1893.792 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
399.886 |
153.182 |
1896.380 |
|
|
|
Other Income |
49.564 |
107.786 |
32.461 |
|
|
|
TOTAL (A) |
449.450 |
260.968 |
1928.841 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
324.498 |
144.615 |
105.055 |
|
|
|
Purchases of Stock-In-Trade |
13.616 |
2.171 |
2.848 |
|
|
|
Changes in Inventories of Finished Goods, Work-In-Progress and Stock In Trade |
(20.533) |
13.207 |
(140.144) |
|
|
|
Employee Benefits Expense |
121.750 |
82.835 |
64.901 |
|
|
|
Other Expenses |
249.988 |
149.461 |
1504.581 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
(2232.464) |
|
|
|
TOTAL (B) |
689.319 |
392.289 |
(695.223) |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(239.869) |
(131.321) |
2624.064 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
51.201 |
4.557 |
35.528 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)BEFORE
TAX, DEPRECIATION AND AMORTISATION
(C-D) (E) |
(291.070) |
(135.878) |
2588.536 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14.414 |
4.198 |
1.602 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(305.484) |
(140.076) |
2586.934 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
23.245 |
83.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(305.484) |
(163.321) |
2503.834 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and Spare Parts |
5.637 |
3.024 |
0.182 |
|
|
|
Capital Goods |
155.571 |
50.347 |
0.000 |
|
|
TOTAL IMPORTS |
161.208 |
53.371 |
0.182 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(12.96) |
(6.93) |
106.19 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(67.97)
|
(62.58)
|
129.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(76.39)
|
(91.44)
|
136.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.76)
|
(7.56)
|
136.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.96)
|
(0.22)
|
3.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
5.32
|
1.84 |
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.14
|
1.52 |
1.70 |
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 |
No |
|
8] |
No. of employees |
No |
|
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 |
Yes |
|
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 |
No |
|
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
80034627 |
11/07/2007 * |
234,535,000.00 |
AYODHYA FINLEASE LIMITED |
M-3, DEWAN HOUSE, AJAY ENCLAVE, SUBHASH NAGA, NEW DELHI - 110018, INDIA |
A19655067 |
|
2 |
80034626 |
11/07/2007 * |
4,500,000.00 |
AYODHYA FINLEASE LIMITED |
M-3, DEWAN HOUSE, AJAY ENCLAVE, SUBHASH NAGA, NEW DELHI - 110018, INDIA |
A19655513 |
|
3 |
80034625 |
11/07/2007 * |
78,000,000.00 |
AYODHYA FINLEASE LIMITED |
M-3, DEWAN HOUSE, AJAY ENCLAVE, SUBHASH NAGA, NEW DELHI - 110018, INDIA |
A19655208 |
* Date of charge modification
UNSECURED LOANS
|
Unsecured Loans |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
LONG TERM
BORROWINGS |
|
|
|
Unsecured Loan from related party |
440.000 |
200.000 |
|
SHORT TERM
BORROWINGS |
|
|
|
From Others |
291.000 |
0.000 |
|
Total |
731.000 |
200.000 |
FINANCIAL RESULTS
The revenue from sales during the current year in textile unit increased
to Rs.398.600 Millions as compared to Rs.153.200 Millions in the previous year.
During the year under report the Company has opened retail showrooms at various
places in Kanpur to promote Company’s products and is in process of opening
more showrooms in and outside Kanpur in phased manner. The operations in the
Company’s Mills have not yet stabilized due to old age of machinery and
workforce resulted in continuing losses. In view of continued losses, the
Directors are unable to recommend any dividend.
REHABILITATION
The rehabilitation scheme sanctioned by Hon’ble BIFR is under
implementation. After lifting of lockout in the Mill w.e.f.19th January, 2009,
large scale maintenance and overhauling work of the Mill Buildings, Plant and
Machinery and Utilities has been undertaken and certain new machines have been
procured to replace old and obsolete ones. Steps are being taken for
modernization and product diversification and Rs.284.400 Millions have already
been invested in Plant and Machinery during the financial year 2012-13.
CHANGE OF NAME OF
THE COMPANY
The existing name of the Company i.e. ‘JUGGILAL KAMLAPAT COTTON SPINNING
AND WEAVING MILLS COMPANY LIMITED’ is too long and causes inconvenience in day to
day business. For sake of convenience and present business trend the Board of
Directors of the Company has proposed to shorten the name of the Company. Since
the Company is well known as ‘J.K. Cotton’, the Board decided that name of the
Company be changed from ‘Juggilal Kamlapat Cotton Spinning and Weaving Mills
Company Limited’ to ‘J.K. Cotton Limited’ subject to the approval of the
Shareholders and Central Government.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
COMPANY
The operations in the Weaving and Processing departments of Textile Unit
of the Company continued during the year. However, desired results could not be
achieved due to old age of plant and workforce. Steps have been taken for
replacement of old machines and induction of young work force. Some machines
were procured and installed during the year and orders for some more machines
have been placed during the year which are yet to be received and installed.
GENERAL REVIEW
Indian textile industry is one of the leading sectors of Indian economy
and contributes significantly to the country’s industrial output (14%),
employment generation (35 million in direct and another 20 million in indirect
employment) and export earnings (17%). It contributes 4% to Indian GDP.
Consumer demand remained sluggish across the textile and apparel value chain in
FY 2012-2013 due to high inflation and interest rates resulting in long periods
of extended end-of-season sales, pressure on margins, thus effecting
profitability.
CONTINGENT
LIABILITIES [AS ON 31.03.2013]:
(i) Claims against
the company not acknowledged as debts - Amount unascertainable.
(ii) Arrears of
dividend on preference shares – Rs.1.272 Millions (Previous Year Rs.1.151
Millions)
(iii) In respect of
trade tax for the assessment year 1989-90 for which appeal is pending Rs. 0.042
Million (Previous Year Rs.0.042 Million)
(iv) Bonds executed
with commissioner of custom, Mumbai along with counter indemnity provided in
respect of bank guarantee for importing machinery at a concessional rate of
duty under EPCG scheme Rs.39.242 Millions.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipments.
·
Vehicles
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 64.22 |
|
|
1 |
Rs. 100.83 |
|
Euro |
1 |
Rs. 85.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3. |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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 and operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.