MIRA INFORM REPORT

 

 

Report Date :

03.02.2014

 

IDENTIFICATION DETAILS

 

Name :

SOHAM PAPERS PRIVATE LIMITED

 

 

Registered Office :

S. No.237/1-2-3, Navagam Road, Tal. Morbi, Lilapar, Rajkot – 363641, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

29.07.2009

 

 

Com. Reg. No.:

04-057665

 

 

Capital Investment / Paid-up Capital :

Rs.49.000 Millions

 

 

CIN No.:

[Company Identification No.]

U21000GJ2009PTC057665

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Duplex Board

 

 

No. of Employees :

80 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 330000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record.

 

Reserves of the company also appears to be low.

 

However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct.

 

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.

 

 

INDIAN ECONOMIC OVERVIEW

 

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

 

 

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 PARTED BY

 

Name :

Mr. Parvinkumar Bhagwanjibhai Marvania

Designation :

Director

Contact No.:

91-9825222653

Date :

01.02.2014

 

 

LOCATIONS

 

Registered Office/ Factory :

S. No.237/1-2-3, Navagam Road, Tal. Morbi, Lilapar, Rajkot – 363641, Gujarat, India

Tel. No.:

Not Available

Mobile No.:

91-9825222653 (Mr. Pravin Kumar)

Fax No.:

91-2822-294600

E-Mail :

sohampaper@gmail.com

info@sohampapers.com

Website :

http://www.sohampapers.com

Location :

Owned

 

 

DIRECTORS

 

(AS ON 30.09.2013)

 

Name :

Mr. Parvinkumar Bhagwanjibhai Marvania

Designation :

Director

Address :

Center View Appartment. Block No.601, Gautam Society, Ravapar Road, Morbi, District Rajkot, Gujarat, India 

Date of Birth/Age :

30.10.1970

Date of Appointment :

29.07.2009

DIN No.:

02688691

 

 

Name :

Mr. Kiritkumar Premjibhai Amaratiya

Designation :

Director

Address :

1, Kataji Plot, Opposite Diamond Hall, Behind Sardar Baug, Morbi, Rajkot – 363641, Gujarat, India 

Date of Birth/Age :

26.10.1975

Date of Appointment :

29.07.2009

DIN No.:

02688699

 

 

Name :

Mr. Divyesh Rameshbhai Marvaniya

Designation :

Director

Address :

Block No.1, Kavaji Plot -6, Morbi, Rajkot – 363641, Gujarat, India 

Date of Birth/Age :

07.06.1986

Date of Appointment :

29.07.2009

DIN No.:

02688710

 

 

Name :

Mr. Arvindkumar Vashrambhai Bhuva

Designation :

Director

Address :

602, Shravan Setu Apartment, 602, Maruti Nagar, Ravapar Road, Morbi, Rajkot – 363641, Gujarat, India

Date of Birth/Age :

12.11.1957

Date of Appointment :

29.07.2009

DIN No.:

02688714

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.09.2013)

 

Shareholding details File Attached.

 

 

(AS ON 30.09.2013)

Equity Shares Break – up

 

Category

 

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

 

 

 

Total

 

 

100.00

 


 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Duplex Board

 

 

Imports :

 

Products :

Raw Materials

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit (Depend)

 

 

GENERAL INFORMATION

 

Suppliers :

·         Kadambari Enterprises

·         Royal Wastage Supplies

·         Gujarat Traders

·         R K Enterprise

·         Star Waste Paper

·         Bharat Enterprises

·         S P Traders

·         Pooja Traders

·         K R Brothers

·         Tirupati Industrial suppliers

·         Shree Veer Ratan Corporation

·         Plus Trading Company

·         Vadiawala Papers

·         Lucky Trading company

·         Malu Marketing

·         Pruthvi Poly Pack Private Limited

·         Vertex Chem Private Limited

·         Jai Ambe Industries

·         United Trading Corporation

 

 

Customers :

End Users

 

·         Kushal Sales and Agencies Private Limited

·         Shiv Shakti Packaging Company

·         Jay Bharat Print Pack

·         Balaji Packaging

·         Copper Designer

·         Dev Packaging

·         Nilkanth Packaging Company

·         Sona Packaging

·         Shree Hari Paper Products

·         Mahavir Agencies

·         Om Marketing Services

·         Ineos Packaging

·         Shiv Sagar Packaging and Offset

·         Hardwar Packaging Morbi

·         Sun Mac Enterprise

 

 

No. of Employees :

80 (Approximately)

 

 

Bankers :

·         Cosmos Bank

Morbi Branch, Gujarat, India

 

·         Union Bank of India

Morbi Branch, Gujarat, India

 

·         The Co-operative Bank of Rajkot Limited

“Sahkar Sadan”, 1 Kalika Plot, Ravapar Road, Morbi – 363641, Gujarat, India

 

 

Facilities :

Secured Loans

31.03.2013

31.03.2012

 

 

(Rs. In Millions)

Long Term Borrowings

 

 

Term Loan From Bank

52.655

64.571

 

 

 

Short Term Borrowings

 

 

Loan Repayable on Demand

 

 

From Banks

 

 

The Consmos Bank CC A/c 1

73.101

72.603

The Consmos Bank CC A/c 2

15.744

20.000

 

 

 

Total

 

141.500

157.174

 

Note:

 

Long Term Borrowings

Term loan - I from The Cosmos Co-Operative Bank Limited, Morbi Branch, Morbi carries interest@ 13.00% P.A presently as on 31-03-2013. The loan is repayable over the period of 68 months in the stipulated year-wise installments along with interest from the date of loan i.e. 21.02.2012 subject to moratorium period of NIL months The loan is secured by E.M. of Factory Land and Building and all other fixed assets. Besides. the loan has been guaranteed by personal guarantee of the directors of the Company.

 

Term loan - II from The Cosmos Co-Operative Bank Limited, Morbi Branch, Morbi carries interest @ 1300% P.A presently as on 31-03-2013. The loan is repayable over the period of 84 months in the stipulated year-wise installments along with interest from the date of loan ie. 2102.2012 Subject to moratorium period of NIL months. The loan is secured by Hypothecation of Plant and Machineries and all other fixed assets. Besides, the loan has been guaranteed by personal guarantee of the directors of the Company

 

Term Loan - III from The Cosmos Co-Operative Bank Limited, Morbi Branch, Morbi carries interest @ 13.00% P.A presently as on 31-03-2013. The loan is repayable over the period of 44 months in the stipulated year-wise installments along with interest from the date of loan i.e, 21.02.2012 subject to moratorium period of NIL months. The loan is secured by Hypothecation of Plant and Machineries and all other fixed assets Besides, the loan has been guaranteed by personal guarantee of the directors of the Company.

 

Short Term Borrowings

Cash Credit from The Cosmos Co-Operative Bank Limited, Morbi Branch, Morbi is secured against hypothecation of stocks, receivables and all other present and future current assets of the Company. The cash credit is repayable on demand and carries interest @ 13.00% P.A. presently as on 31-03-2013 which is subject to change from time to time when bank change the rate.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Nanalal P. Hadial

Chartered Accountants

Address :

Morbi, Gujarat, India

 

 

CAPITAL STRUCTURE

 

(AS ON 30.09.2013)

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

4900000

Equity Shares

Rs.10/- each

Rs.49.000 Millions

 

 

 

 

 


 

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

49.000

49.000

49.000

(b) Reserves & Surplus

33.557

20.978

7.237

(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)

82.557

69.978

56.237

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

83.931

88.661

96.882

(b) Deferred tax liabilities (Net)

3.418

3.543

3.420

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

87.349

92.204

100.302

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

88.845

92.603

29.620

(b) Trade payables

84.597

85.786

56.570

(c) Other current liabilities

20.492

18.397

18.370

(d) Short-term provisions

5.441

7.283

5.777

Total Current Liabilities (4)

199.375

204.069

110.337

 

 

 

 

TOTAL

369.281

366.251

266.876

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

116.298

124.567

139.632

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1.000

1.000

3.138

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

1.125

0.054

7.914

Total Non-Current Assets

118.423

125.621

150.684

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

73.534

81.156

19.319

(c) Trade receivables

162.500

139.150

83.154

(d) Cash and cash equivalents

3.676

6.376

7.885

(e) Short-term loans and advances

3.125

2.996

0.163

(f) Other current assets

8.023

10.952

5.671

Total Current Assets

250.858

240.630

116.192

 

 

 

 

TOTAL

369.281

366.251

266.876

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income from Operations

735.015

703.377

304.216

 

 

Other Income

0.747

0.863

0.345

 

 

TOTAL                                    

735.762

704.240

304.561

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

700.605

664.181

281.486

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

35.157

40.059

23.075

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

17.420

18.969

9.992

 

 

 

 

 

 

PROFIT BEFORE TAX

17.737

21.090

13.083

 

 

 

 

 

Less

TAX                                                                 

5.158

7.349

5.846

 

 

 

 

 

 

PROFIT AFTER TAX

12.579

13.741

7.237

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.57

2.80

1.48

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

1.71

1.95

2.38

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.41

2.99

4.30

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.82

5.77

4.96

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.21

0.30

0.23

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

2.09

2.59

2.25

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.26

1.18

1.05

 


 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL: NOT AVAILABLE

 

 

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

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

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

No

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 LOANS

 

Particulars 

31.03.2013

31.03.2012

 

 

(Rs. In Millions)

Long Term Borrowings

 

 

Loans and Advances from Related Parties

 

 

From Directors

15.751

10.002

From Others

15.524

14.088

 

 

 

Total

 

31.275

24.090

 

Note:

Long Term Borrowings

Unsecured loans from directors and shareholders are repayable on demand and without any interest obligation in general unless written request received from depositor in that respect before the end of financial year. Besides, the management also believes these deposits are not required to be repaid in the next 12 months accordingly the same has been classified as long-term borrowings.

 

 

COMPANY PERFORMANCE

 

The company has reported income from operation during the year is Rs.735.015 Millions as compared to the previous year’s income from Operation of Rs.703.377 Millions. The company has company earned Net profit of Rs.12.579 Millions as against previous year’s Net profit of Rs.13.741 Millions. With a view to conserve resources, the directors do not recommend any dividend.

 

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number

(SRN)

1

10339653

27/02/2012 *

191,000,000.00

The Cosmos Co-Operative Bank Limited

Morbi Branch, Opp. Sardar Baug, Sanala Road, Morbi, Gujarat - 363641, India

B34259143

 

 

FIXED ASSETS:

 

·         Factory Land

·         Factory Building

·         Machinery

·         Electric Fittings

·         Office Furniture

·         Computer

·         ]Motor Cycle

·         Air Conditioner

·         Storage Tank

·         Fire Equipment

·         Mobile

·         Frok Lift

 

 

 


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.62.48

UK Pound

1

Rs.102.95

Euro

1

Rs.84.60

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

32

 

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.