|
Report Date : |
10.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
DHAVAL AGRI EXPORTS |
|
|
|
|
Registered
Office : |
B-9, Market Yard, Rajkot – 360003, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Year of
Establishment : |
1999 |
|
|
|
|
Capital
Investment : |
Rs.123.431 Millions |
|
|
|
|
Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners |
|
|
|
|
Line of Business
: |
Processor, Exporter and Importer of Agricultural Commodities. |
|
|
|
|
No. of Employees
: |
145 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 490000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established partnership concern having moderate track
record. Management has reported a decent sales volume during FY 2014. As per indirect source we found that the concern possesses a weak
financial profile marked by high total outside liabilities and weak debt
protection metrics. The ratings also take into consideration the low value adding nature
of the business which affect the profitability margins and risk associated
with vulnerability to regulatory frame – work with regards to export
incentives and agro climatic conditions in the country. However, trade relations seems to be fair. Business is active. Payment
terms are reported as slow but correct. In view of long standing experience of the promoters, the subject can be
considered for business dealings with caution. |
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of 4.9
%, Fitch Rating said. The global rating agency expects the economy to pick up
in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating : B+ |
|
Rating Explanation |
Risk prone credit quality and high risk of
default. |
|
Date |
April 25, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
April 25, 2014 |
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. Jay Chandarana |
|
Designation : |
Chief Executive Officer |
|
Contact No.: |
91-9824250505 |
|
Date : |
07.06.2014 |
LOCATIONS
|
Registered Office : |
B-9, Market Yard, Rajkot – 360003, Gujarat, India |
|
Tel. No.: |
91-281-2433691/ 92/ 93 |
|
Mobile No.: |
91-9824250505 (Mr. Jay Chandarana) |
|
Fax No.: |
91-281-2477808 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
1000 Sq. Ft |
|
Location : |
Owned |
|
|
|
|
Factory : |
“Shri Hari Kutir” Morbi Highway Road, Touch, Bedi Village, Rajkot,
Gujarat, India |
|
Area : |
18000 Sq. Yard |
|
Location : |
Owned |
PARTNERS
|
Name : |
Mr. Suresh Chandarana |
|
Designation : |
Partner |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
B. Com |
|
|
|
|
Name : |
Mr. Dolar Chandarana |
|
Designation : |
Partner |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
B. Com |
KEY EXECUTIVES
|
Name : |
Mr. Nalin Ambani |
|
Designation : |
Accounts Head |
|
|
|
|
Name : |
Mr. Jay Chandarana |
|
Designation : |
Chief Executive officer |
|
|
|
|
Name : |
Mr. Moiz Gandhi |
|
Designation : |
Export Manager |
BUSINESS DETAILS
|
Line of Business : |
Processor, Exporter and Importer of Agricultural Commodities. |
|
|
|
|
Exports : |
|
|
Products : |
Agricultural Commodities |
|
Countries : |
· Korea · China · Vietnam |
|
|
|
|
Imports : |
|
|
Products : |
Sesame Seeds |
|
Countries : |
· Nigeria |
|
|
|
|
Terms : |
|
|
Selling : |
L/C, Cash and Credit |
|
|
|
|
Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
|
Suppliers : |
Olam International, India |
|
|
|
|
Customers : |
Jabs International Private Limited, India |
|
|
|
|
No. of Employees : |
145 (Approximately) |
|
|
|
|
Bankers : |
Oriental Bank of Commerce, Morbi, Rajkot, Gujarat, India Tel No.: 91-2822-240449 |
|
|
|
|
Facilities : |
·
Cash Credit – Rs.110.000 Millions ·
Bill Discounting – Rs.280.000 Millions |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Pabari and Associates Chartered Accountants |
|
Address : |
Rajkot, Gujarat, India |
CAPITAL STRUCTURE
AS ON 31.03.2013
|
Capital Investment : |
|
|
Owned : |
Rs.123.431 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs.123.431
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
Particulars |
|
|
31.03.2014 |
|
|
|
|
|
|
Sales Turnover (Approximately) |
|
|
4880.000 |
|
|
|
|
|
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2013 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Partners Capital |
|
|
123.431 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
0.000 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
123.431 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
401.134 |
|
|
2] Unsecured Loans |
|
|
57.178 |
|
|
TOTAL BORROWING |
|
|
458.312 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
581.743 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
35.876 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.001 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
332.364 |
|
|
Sundry Debtors |
|
|
356.640 |
|
|
Cash & Bank Balances |
|
|
0.980 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
46.308 |
|
Total
Current Assets |
|
|
736.292 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
187.513 |
|
|
Other Current Liabilities |
|
|
1.488 |
|
|
Provisions |
|
|
1.425 |
|
Total
Current Liabilities |
|
|
190.426 |
|
|
Net Current Assets |
|
|
545.866 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
581.743 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
3600.038 |
|
|
|
Other Income |
|
|
96.720 |
|
|
|
TOTAL |
|
|
3696.758 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
|
|
3375.122 |
|
|
|
Direct expenses |
|
|
212.267 |
|
|
|
Administrative expenses |
|
|
21.673 |
|
|
|
Donation |
|
|
0.015 |
|
|
|
Remuneration to partners |
|
|
9.000 |
|
|
|
Interest to partner |
|
|
7.217 |
|
|
|
TOTAL |
|
|
3625.294 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
|
71.464 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
|
48.498 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
|
22.966 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
|
|
4.579 |
|
|
|
|
|
|
|
|
|
|
NET
PROFIT/(LOSS) |
|
|
18.387 |
|
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2013 |
|
PAT / Total Income |
(%) |
|
|
0.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
0.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
2.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
|
|
3.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
3.87 |
The above information has been parted by Mr. Jay Chandarana [Chief
Executive Officer]
Note: Sole Proprietary and Partnership concerns are exempted
from filing their financials with the Government Authorities or Registry.
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 |
Yes |
|
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
two years |
Yes |
|
12] |
Profitability for last
one year |
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) |
Yes |
|
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 |
No |
|
29] |
Last accounts filed at
ROC |
No |
|
30] |
Major Shareholders, if
available |
No |
|
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 |
PRESS RELEASE
213 agri commodities identified for boosting exports
Gradation of agricultural commodities has gained importance following
food gradation norms in European Union
April 11, 2014
The grading facilities of agricultural commodities have gained priority to boost agri exports in the 12th plan. Accordingly, 213 agricultural commodities have been notified under the provisions of the Agricultural produce (Grading and marking) Act, 1937Act.
These include raw, semi processed and processed commodities with focus on raw
agricultural commodities such as cereals, pulses, oilseeds and fruits and vegetables so that farmers get
incentive for grading the produce.
The gradation of agricultural commodities has gained importance following food
gradation norms in European Union and grade standards maintained for electronic
trading and issue of Negotiable warehouse Receipt.
According to officials, specific focus will be on the grade standards of fruits
and vegetables and their grading and marking so that more countries recognize
the Agmark certification system as already recognized by the European Union.
The grade standards in India are now being harmonized with international
standards such as Codex & ISO and standards framed by Bureau of Indian
Standards (BIS). Due to global expansion in food trade, the World Trade
Organization (WTO) has set as one of their objectives the opening up of trade
between countries and aims to address restrictive trade barriers.
Sanitary issues have always been important in global trade and have become one
of the most important potential Technical Barriers to Trade (TBT) In this
backdrop, apart from gradation of agricultural commodities, Good Agricultural
Practices ( GAP) have also made a foray into Indian Agricultural scenario.
GAP takes into account not only the quality and quantity of the produce
obtained from a unit area but also in integrating pre harvest practices like
soil & water management, nutrient management and pest management,
harvesting, post harvest handling and other logistics.
As per recent data from the agriculture ministry, froma net importing country, India is
today consistently producing 250 million tonnes (MT) of food grains, 100 MT of
rice, 90 MT of wheat, 35 million bales of cotton, and more than 18 MT of pulses
among the major crops and cereals.
India has emerged as a major player in the global agriculture market. In the
last five years, the country’s agriculture exports have tripled from around Rs
80,000 crore ($ 12.75 billion) to Rs 2.32 trillion ($ 33.99 billion).
Total exports of Indian agri and processed food products from April to August
2013 stood at $ 9.7 bn as compared to $ 8.8 bn during the same period last year,
according to the data released by the Agricultural and Processed Food Products
Export Development Authority (APEDA).
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
|
1 |
Rs.99.35 |
|
Euro |
1 |
Rs.80.62 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.