MIRA INFORM REPORT
|
Report Date : |
21.02.2014 |
IDENTIFICATION DETAILS
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Name : |
NAGREEKA EXPORTS LIMITED |
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Registered
Office : |
18, R.N. Mukherjee Road, 6th Floor, Kolkata – 700001, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
06.03.1989 |
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Com. Reg. No.: |
21-046387 |
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Capital
Investment / Paid-up Capital : |
Rs.62.550 Millions |
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CIN No.: [Company Identification
No.] |
L1810WB1989PLC046387 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALN02503E |
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PAN No.: [Permanent Account No.] |
AAACN9999A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and export of cotton yarn and other various merchandise. |
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No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 3590196 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. Profitability of the company is low and external borrowing of the company
seems to be increasing over a year. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term
facilities: BBB- |
|
Rating Explanation |
Moderate degree of
safety and moderate credit risk. |
|
Date |
27.12.2012 |
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Rating Agency Name |
CARE |
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Rating |
Short term bank
facilities: A3 |
|
Rating Explanation |
Moderate degree of
safety and higher credit risk. |
|
Date |
27.12.2012 |
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-61447500)
LOCATIONS
|
Registered Office : |
18, |
|
Tel. No.: |
91-33-22108828 / 22484922 / 4943 |
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Fax No.: |
91-33-22481693 |
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E-Mail : |
knbansal@nagreeka.com |
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Website : |
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Corporate Office 1 : |
7, Kala Bhavan 2, |
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Tel. No.: |
91-22-23670365 / 61447500 |
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Fax No.: |
91-22-23612579 / 23630475 |
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E-Mail : |
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Corporate Office 2 : |
21-22, Kala Bhavan, 3, |
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Tel. No.: |
91-22-23625977 / 61447500 / 23618873 |
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Factory : |
Village Yavluji, Taluka Panhala, District – |
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Factory 2 : |
Plot No. T-48, MIDC, Kagal-Hatkanangale, Five Star Industrial Area,
Village : Talandage, Taluka : Hatkanangale, District : Kolhapur, Maharashtra,
India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Sushi Patwari |
|
Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
20.08.1954 |
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Qualification : |
B. Com (H) |
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Date of Appointment : |
06.03.1989 |
|
Other Directorship : |
ô Rupa and Company Limited ô Reliance Processors Limited ô Nagreeka Capital and Infrastructure Limited ô Jaidka Motor Company Limited |
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|
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|
Name : |
Mr. Sunil Patwani |
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Designation : |
Vice Chairman and Managing Director |
|
Name : |
Mr. Kailash Chandra Purohit |
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Designation : |
Whole – time Director |
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Date of Birth/Age : |
18.06.1932 |
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Qualification : |
B. Tech |
|
Date of Appointment : |
30.06.2001 |
|
Name : |
Mr. Mohan Kishen Ogra |
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Designation : |
Director |
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Date of Birth/Age : |
15.09.1930 |
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Qualification : |
Graduate (Maths and Stastic) |
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Date of Appointment : |
30.06.2001 |
|
Other Directorship : |
Ż Nicco Financial Services Limited Ż Nicco Engg. Services Limited Ż Nicco Biotech Limited Ż Nagreeka Capital and Infrastructure Limited |
|
Name : |
Mr. Bibhuti Charan Talukdar |
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Designation : |
Director |
|
Name : |
Mr. Mahendra Patwari |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
15.03.1963 |
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Qualification : |
B. E. from IIT |
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Date of Appointment : |
01.07.2004 |
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Other Directorship : |
Nagreeka Foils Limited |
|
Name : |
Mr. Rajendra Mahavirprasad Ruia |
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Designation : |
Director |
|
Name : |
Mr. Mahabir Prasad Periwal |
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Designation : |
Director |
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Date of Birth/Age : |
12.08.1944 |
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Qualification : |
Graduate |
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Date of Appointment : |
07.08.2008 |
|
Other Directorship : |
ô Pinoreer Protec Limited ô Pioneer Plastic Industrial Limited ô Sarda Housing Developments Private Limited |
KEY EXECUTIVES
|
Name : |
Mr. J. Tiwari |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on 31.12.2013
|
Category
of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4472300 |
35.78 |
|
|
2105186 |
16.84 |
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|
6577486 |
52.62 |
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|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
6577486 |
52.62 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
3300 |
0.03 |
|
|
300 |
0.00 |
|
|
300 |
0.00 |
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|
500 |
0.00 |
|
|
4400 |
0.04 |
|
|
|
|
|
|
2283503 |
18.27 |
|
|
|
|
|
|
2588091 |
20.71 |
|
|
830841 |
6.65 |
|
|
215379 |
1.72 |
|
|
214679 |
1.72 |
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|
700 |
0.01 |
|
|
5917814 |
47.34 |
|
|
215379 |
1.72 |
|
Total Public
shareholding (B) |
5922214 |
47.38 |
|
Total (A)+(B) |
12499700 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
12499700 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and export of cotton yarn and other various merchandise.
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Yarn |
Spindle |
56784 |
55440 |
-- |
|
Cotton Yarn |
Kg. |
-- |
-- |
9435626 |
|
Cloth Weaving |
Mtr. |
-- |
733000 |
877345 |
|
Cloth Processing |
Mtr. |
-- |
792000 |
846887 |
|
Knitted Fabrics |
Kg. |
-- |
-- |
126658 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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Bankers : |
· ING VYSYA Bank Limited, Overseas Branch, Mumbai · Oriental Bank of Commerce, Overseas Branch, Kolkata · State Bank of Patiala, Commercial Branch, Mumbai · Allahabad Bank, Industrial Finance Branch, Kolkata · ICICI Bank, R.N. Mukherjee Road Branch, Kolkata |
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Facilities : |
NOTES : Term loan from
bank ii) Rupee Term
loan from Canara Bank - Kolkata, Oriental Bank of Commerce – Kolkata and
State Bank of Patiala – Mumbai is secured by (a) an equitable
mortgage ranking pari passu inter-se by deposit of title deeds of all the
immovable properties of the company both present and future, relating to its
spinning unit premises at Village : Yavluj, District : Kolhapur, Maharashtra
and (b) by way of
hypothecation ranking pari passu inter-se of all movable properties of the
company both present and future including movable machineries, spares, tools
& accessories (save & except book debts) subject to prior charges
created or to be created
in favour of the Company’s Bankers, on its stock of Raw Materials, finished
goods, consumable stores, book debts and such other movables as may be
specifically permitted by the institutions in writing, to secure borrowings
for working capital requirements and (c) Personal
guarantee of some of the Directors of the Company. iii) Working
Capital Term Loan from Canara Bank, Overseas Branch, Kolkata is secured by
way of : (a)
hypothecation of stock of Raw materials, Work-in-process, finished goods and
book debts relating to spinning unit at Village : Yavluj, District : (b) Second
charge on immovable properties of the company relating to above mentioned
spinning unit, and (c) Personal
guarantee of some of the Directors of the Company. iv) For the above loan a securitisation agreement entered in between
the Company, AXIS Bank Limited and the above lenders. Working capital
loans from bank i) Working
Capital Loan from Canara Bank, Overseas Branch, Kolkata and Mumbai , Oriental
Bank of Commerce, Overseas Branch, Kolkata, Allahabad Bank, Industrial
Finance Branch, Kolkata, State Bank of Patiala - Commercial Branch, Mumbai
and ICICI Bank Limited, Kolkata are secured by way of : (a) First charge
by way of hypothecation of stock of Raw materials, Work-in-process, finished
goods and book debts relating to spinning unit at Village : Yavluj, District
: Kolhapur, Maharashtra and stock-in-trade at trading unit Kolkata, both
present and future in a form and manner satisfactory to the bank, ranking
pari pasu with each other participating working capital banks. (b) Second
charge on all the fixed assets of the company, both present and future
ranking pari pasu with each other participating working capital banks. (c) Personal
guarantee of some of the Directors of the Company. ii) Previous
Year working Capital Loan includes working capital loan from ING Vysya Bank
Limited, Overseas Branch, Mumbai was secured by way of : (a)
hypothecation of stock of raw materials, work in process, Finished goods,
book debts relating to spinning unit at Village : Yavluj, District :
Kolhapur, Maharashtra and (b) second
charge on immovable Properties of the Company relating to above mentioned
spinning unit and (c) Personal guarantee of some of the Directors of the Company. |
|
Banking
Relations : |
-- |
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|
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|
Auditors : |
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|
Name : |
Das and Prasad Chartered Accountant |
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Address : |
4, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.5/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12510000 |
Equity Shares |
Rs.5/- each |
Rs.62.550
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12499700 |
Equity Shares |
Rs.5/- each |
Rs.62.498
Millions |
|
|
Add : 10300 Equity Forfeited Shares |
|
Rs.0.052
Million |
|
|
TOTAL |
|
Rs.62.550 Million |
Reconciliation of
number of Equity Shares and amount outstanding
|
Particulars |
31.03.2013 |
|
|
|
Numbers |
Rs. In Millions |
|
Shares Outstanding at April 1, 2012 |
12499700 |
62.498 |
|
Shares Outstanding at March 31, 2013 |
12499700 |
62.498 |
The
details of Shareholders holding more than 5% shares
|
Name of the
Share Holder |
31.03.2013 |
|
|
|
Numbers |
Percentage |
|
Agarwal Galvanishing Private Limited |
675600 |
5.40% |
|
Mala Patwari |
891700 |
7.13% |
|
Sunil Patwari |
712000 |
5.70% |
|
Nagreeka Synthetics Private Limited |
940270 |
7.52% |
The Company has one class of equity share having a par value of Rs. 5
per share. Each shareholder is eligible for one vote per share held.
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 |
62.550 |
62.550 |
62.550 |
|
(b) Reserves & Surplus |
834.999 |
798.123 |
776.393 |
|
(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) |
897.549 |
860.673 |
838.943 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) Long-term borrowings |
867.708 |
453.041 |
522.106 |
|
(b) Deferred tax liabilities (Net) |
160.950 |
149.776 |
153.013 |
|
(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) |
1028.658 |
602.817 |
675.119 |
|
|
|
|
|
|
(4) Current
liabilities |
|
|
|
|
(a) Short term
borrowings |
1131.966 |
1048.788 |
1084.532 |
|
(b) Trade
payables |
224.460 |
126.599 |
148.530 |
|
(c) Other current
liabilities |
114.822 |
115.586 |
152.611 |
|
(d) Short-term
provisions |
26.155 |
9.938 |
26.024 |
|
Total
Current Liabilities (4) |
1497.403 |
1300.911 |
1411.697 |
|
|
|
|
|
|
TOTAL |
3423.610 |
2764.401 |
2925.759 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible
assets |
1362.275 |
833.632 |
871.192 |
|
(ii) Intangible
Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
129.445 |
10.761 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
142.434 |
142.344 |
142.344 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
38.580 |
26.296 |
23.326 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
1543.289 |
1131.717 |
1047.623 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a) Current
investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
826.455 |
913.332 |
913.380 |
|
(c) Trade
receivables |
133.511 |
150.117 |
419.330 |
|
(d) Cash and cash
equivalents |
23.354 |
54.124 |
37.978 |
|
(e) Short-term
loans and advances |
897.001 |
515.111 |
507.448 |
|
(f) Other current
assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
1880.321 |
1632.684 |
1878.136 |
|
|
|
|
|
|
TOTAL |
3423.610 |
2764.401 |
2925.759 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6418.391 |
4956.705 |
5583.502 |
|
|
|
Other Income |
30.275 |
18.620 |
9.661 |
|
|
|
TOTAL (A) |
6448.666 |
4975.325 |
5593.163 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
1324.123 |
1489.645 |
1406.250 |
|
|
|
Purchase of Traded Goods |
3828.515 |
2856.136 |
3401.410 |
|
|
|
Change in inventories of Finished Goods, Stock in Process and Stock in
Trade |
124.003 |
(279.053) |
(214.480) |
|
|
|
Employees Benefit Expenses |
125.660 |
109.901 |
94.223 |
|
|
|
Other Expenses |
699.294 |
543.159 |
606.810 |
|
|
|
TOTAL
(B) |
6101.595 |
4719.788 |
5294.213 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
347.071 |
255.537 |
298.949 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
212.133 |
174.303 |
122.232 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
134.938 |
81.234 |
176.718 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
70.529 |
69.236 |
66.535 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
64.409 |
11.998 |
110.183 |
|
|
|
|
|
|
|
|
|
Add |
TAX (H) |
20.222 |
9.732 |
48.620 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
44.187 |
21.730 |
61.563 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
101.656 |
79.926 |
25.651 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
6.249 |
0.000 |
6.250 |
|
|
|
Income tax on Dividend |
1.062 |
0.000 |
1.038 |
|
|
BALANCE CARRIED
TO THE B/S |
138.533 |
101.656 |
79.926 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3018.436 |
3872.893 |
4574.745 |
|
|
TOTAL EARNINGS |
3018.436 |
3872.893 |
4574.745 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores and Spares |
NA |
NA |
1.964 |
|
|
|
Capital Goods |
NA |
NA |
40.046 |
|
|
TOTAL IMPORTS |
NA |
NA |
42.010 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.54 |
1.74 |
4.93 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.69
|
0.44
|
1.10 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.00
|
0.24
|
1.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.02
|
0.48
|
3.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.01
|
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.23
|
1.74
|
1.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26
|
1.26
|
1.33 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
62.550 |
62.550 |
62.550 |
|
Reserves & Surplus |
776.393 |
798.123 |
834.999 |
|
Net
worth |
838.943 |
860.673 |
897.549 |
|
|
|
|
|
|
long-term borrowings |
522.106 |
453.041 |
867.708 |
|
Short term borrowings |
1084.532 |
1048.788 |
1131.966 |
|
Total
borrowings |
1,606.638 |
1,501.829 |
1,999.674 |
|
Debt/Equity
ratio |
1.915 |
1.745 |
2.228 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
5,583.502 |
4,956.705 |
6,418.391 |
|
|
|
(11.226) |
29.489 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
5,583.502 |
4,956.705 |
6,418.391 |
|
Profit After Tax |
61.563 |
21.730 |
44.187 |
|
|
1.10% |
0.44% |
0.69% |
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 |
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 |
Yes |
|
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 |
LITIGATION DETAILS
|
CULCUTTA HIGH COURT CASE STATUS INFORMATION SYSTEMS STATUS OF : INCOME TAX APPEALS (ITA) 106 of
2012 COMMISSIONER OF INCOME TAX, KOLKATA – II Vs. M/s NAGREEKA EXPORTS LIMITED PET’S ADV.: : G. S. MAKKER RES’S ADV.: : COURT NO. : 19 LAST
LISTED ON : FRIDAY, AUGUST 24, 2012 CATEGORY : INCOME TAX : REVENUE CONNECTED APPLICATION : NO CONNECTED APPLICATION CONNECTED MATTER : NO
CONNECTED CASES CASE UPDATE ON : WEDNESDAY,
AUGUST 29, 2012. |
COMPANY OVERVIEW:
The company was
incorporated on 6th March, 1989 under the laws of republic of India and has its
registered office at kolkata, West bengal. The company is engaged in
manufacturing and export of cotton yarn and other various merchandise. The
shares of the company are listed in National stock exchange and Bombay stock
exchange. Company has setup 100%export oriented unit with the state of art,
Plant with export capacity of 55440 spindles at Kolhapur in Maharashtra. The
Company was also awarded International standard organization certificate for
export performance. The Company’s marketing network is spread over in various
countries. The Company also doing trading of cotton yarn and various
commodities. The Company is merchant
exporter also. The Company has taken up for setting of yarn deying and cotton
bleaching plant at Kolhapur.
REVIEW OF
OPERATIONS:
During the
financial year the company has achieved turnover of Rs.6418.391 Million against
Rs. Rs.4956.705 Millions in the previous year an increase of 29.48%. The profit
after tax isRs.44.188 Millions against profit after tax of Rs.21.730 Millions
in the previous year an increase of more than 100%.Textile Industry continues
to face challenges. The adverse effects of continued slowdown in the advanced
economics growth slowing rate in the Indian economy and other developing
countries continued to be a drag on the industry. Increase in power cost,
rising high interest rates and fluctuations in the foreign exchange rates also
made things difficult. The availability in respect of raw cotton was better
particularly in the 2nd half of the financial year 2012-13. The prices were
also relatively more stable compared to the previous year, though since
February 2013 there is constant and big upward movements in the cotton prices.
Inspite of the above, the company could achieve a significant growth in top
line and bottom line through focused thrust on specific products and markets
and good controls and practices.
FUTURE PROSPECT
The yarn industry
continues to face challenges of rising costs, shortage of manpower and
volatility in prices of cotton and foreign exchange. The emergence of China as a major importer of
yarn is a positive development for the company and the textile industry.
Committed to further improvements in performance and growth.The yarn dyeing and
fibre bleaching plant of the company has been commissioned and is progressing
well and should contribute to the company’s financial performance during the
current financial year. The company is working on projects for new spinning
capacity and denim manufacturing.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT:
Textile Industry
continues to play a predominant role in the Indian economy and has a 14% share
in GDP and 11% share in exportsin addition to the huge employment. The
investment in the textile industry has been fueled by the Technology Up
gradation Fund (TUF) Scheme of the Central Government since 1999. The Indian
spinning industry is the most modern in the world and is steadily growing in
capacity and output. The announcement for continuation of the TUF scheme during
the twelfth plan period 2012-17 is welcome. However, the delay in notification
and implementation of TUF scheme is a cause for worry.
OPPORTUNITIES AND
THREATS:
The continuous
growth of Indian economy, although at a reduced pace, ensures growing
consumption of textiles in domestic market. The depreciation of the rupee, the
increasing costs in competing countries like China and compliance issues in
Bangladesh promise a sharp increase in flow of orders for garments and home
textiles to India and will result in increased consumption of cotton yarn. The
export of cotton yarn has shown a healthy growth in the last two years helped
significantly by increasing imports of cotton yarn by China.
The thrust of the
Government policies to encourage exports through expansion of existing export
promotion schemes and new schemes such as Incremental Exports Incentivisation
Schemes and Liberalized EPGC Scheme will help to increase exports. Thus, there
are tremendous opportunities for the spinning industry. Timely onset of the
monsoon has brightened prospects for a good cotton crop. The big and healthy
crop increases the prospects of stable pricing. However, uncontrolled exports
of raw cotton have been leading to very tight supply situation for the domestic
industry resulting in price volatility.
Rising costs of
inputs continues to be a worry. Shortage of appropriate manpower is becoming
acute. The interest rates in India are higher than our competing countries and
prospects of it increasing further are a worry.
C) OUTLOOK:
The scenario for
increased demand for cotton yarn in the domestic and export markets provides
hope for a bright outlook. The increase in input cost is an area of constant
concern.
RAW COTTON:
The major cost
i.e. raw cotton for us is an agricultural product and a commodity. As such, the
vagaries of the monsoon and the volatility of the forward markets and their
effect on cotton are concerns. The actions of the RBI on inflation control
increase the risk of higher interest costs. However the company has systems and
is focused to continuously monitor these concerns and take necessary steps to
mitigate their effect on the company.
CONTINGENT LIABILITIES (AS ON 31.03.2013):
Contingent Liabilities not provided for in
respect of
I Bills discounted with Banks Rs. 540.355 millions (Previous Year Rs.
419.976 millions)
II Bank Guarantees of Rs. 42.647 millions (Previous Year Rs. 37.137 millions)
issued in favour of Custom, Central Excise and Other Government Authorities.
III Disputed Statutory Dues :-
a) The Income Tax Assessment of the Company have been completed up to
Assessment Year 2009-2010. Disputed Income Tax Liabilities for which appeal is
pending before different appellate authorities for Assessment Year 2000-2001,
2005-2006, 2006-2007, 2008-2009 and
2010-2011 are Rs. 26.961 millions.
b) Disputed Central Excise liability for which appeal is pending before
different excise authorities relating to financial year from 2004-2005,
2005-2006 is Rs. 2.713 millions.
c ) Disputed Central Service Tax liability for which appeal is pending
before different Service Tax authorities relating to financial year from
2004-2005, 2005-2006 and 2009-2010 is Rs. 2.515 millions.
Based on the decision of the Appellate authorities and the
interpretations of the other relevant provisions, the Company has been legally
advised that the demand is likely to be either deleted or substantially reduced
and accordingly no provision has been made
FIXED ASSETS
- Land and Site Development
- Land (Leasehold)
- Office Premises
- Godown
- Plant and Machinery
- Furniture and Fixtures
- Air Conditioner
- Vehicles
- Computer
- Office Equipments
- Non Factory Building
- Refrigerator
- Old Machine in Hand
CMT REPORT (Corruption, Money Laundering
& 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 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.62.28 |
|
|
1 |
Rs.103.84 |
|
Euro |
1 |
Rs.85.70 |
INFORMATION DETAILS
|
Information Gathered
by : |
HTL |
|
|
|
|
Report Prepared
by : |
SNT |
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 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.