MIRA
INFORM REPORT
|
Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
VIRAT EXIM |
|
|
|
|
Registered
Office : |
37/39, 2nd |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Year of
Establishment : |
2007 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.15.606 millions |
|
|
|
|
Legal Form : |
Sole Proprietary Concern |
|
|
|
|
Line of Business
: |
Trader and Importer of Aluminium Alloys. |
|
|
|
|
No. of Employees
: |
15 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established proprietary concern having moderate track. Management has witnessed a better increase in its sales volume as well
as net profitability whereas, has reported a huge gearing which may act as a
threat to the liquidity position during FY13. However, trade relation seems to be fair. Business is active. Payment
terms are reported as slow but correct. The company 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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
SME “SE2B” |
|
Rating Explanation |
Moderate financial strength end high performance capability |
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
31-03-2014.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Prakash |
|
Designation : |
Accountant |
|
Contact No.: |
91- 22 – 23840111 |
|
Date : |
10.09.2014 |
LOCATIONS
|
Registered Office : |
37/39, 2nd Carpenter Street, C.P. Tank Road, Mumbai – 400
004, Maharashtra, India |
|
Tel. No.: |
91-22-23840111 |
|
Fax No.: |
91-22-66346944 |
|
E-Mail : |
|
|
|
|
|
Warehouse : |
Located at: ·
Anjur Phata, Bhiwandi |
SOLE PROPRIETOR
|
Name : |
Mr. Jitendra Kesharimalji Sanghvi |
|
Designation : |
Proprietor |
|
PAN No.: |
AAEPS4892C |
KEY EXECUTIVES
|
Name : |
Mr. Prakash |
|
Designation : |
Accountant |
BUSINESS DETAILS
|
Line of Business : |
Trader and Importer of Aluminium Alloys. |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit |
|
|
|
|
Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
|
|
|
|
No. of Employees : |
15 (Approximately) |
|
|
|
|
Bankers : |
·
Bank of Baroda, C.P. Tank Branch ·
HDFC Bank Limited, Marine Drive Branch |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Subhash Parakh and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Sister Concern :
|
Virat Aluminium Address: 37/39, 2nd Carpenter Street, C.P. Tank Road, Mumbai – 400
004, Maharashtra, India Line of Business: Trader and Importer of Aluminium Alloys. Tel. No.: 91-22-23840111/ 23840333 Fax No.: 91-22-66346944 |
CAPITAL STRUCTURE
AS ON 31.03.2013
|
Capital Investment : |
|
|
Owned : |
Rs.15.606 millions |
|
Borrowed : |
-- |
|
Total : |
Rs.15.606
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
Not Divulged |
The above information has been denied by Mr. Prakash.
Note : Sole Proprietory and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Proprietor’s Capital |
15.606 |
6.572 |
3.349 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15.606 |
6.572 |
3.349 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
5.164 |
0.291 |
|
|
2] Sundry Loans |
122.310 |
121.168 |
81.935 |
|
|
TOTAL BORROWING |
122.310 |
126.332 |
82.226 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
137.916 |
132.904 |
85.575 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
0.798 |
0.961 |
1.073 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
91.688
|
87.726 |
58.973 |
|
|
Sundry Debtors |
30.911
|
17.790 |
9.410 |
|
|
Cash & Bank Balances |
2.361
|
0.386 |
2.327 |
|
|
Other Current Assets |
12.184
|
10.162 |
9.717 |
|
|
Loans & Advances |
2.204
|
18.101 |
6.470 |
|
Total
Current Assets |
139.348
|
134.165 |
86.897 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
|
2.230
|
2.222 |
2.395 |
|
|
Provisions |
|
|
|
|
Total
Current Liabilities |
2.230
|
2.222 |
2.395 |
|
|
Net Current Assets |
137.118
|
131.943 |
84.502 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
137.916 |
132.904 |
85.575 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
240.882 |
213.895 |
166.572 |
|
|
|
Other Income |
0.051 |
0.007 |
0.015 |
|
|
|
TOTAL |
240.933 |
213.902 |
166.587 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
201.623 |
182.320 |
143.411 |
|
|
|
Bad Debts |
0.270 |
0.000 |
0.000 |
|
|
|
Bank Charges |
0.018 |
0.014 |
0.003 |
|
|
|
CST Tax |
2.491 |
1.283 |
1.034 |
|
|
|
Commission |
1.519 |
1.461 |
1.351 |
|
|
|
Computer Maintenance Charges |
0.007 |
0.004 |
0.005 |
|
|
|
Conveyance |
0.181 |
0.115 |
0.032 |
|
|
|
Electricity Charges |
0.020 |
0.008 |
0.014 |
|
|
|
Hel, Hamali and Cartage |
1.710 |
0.877 |
0.680 |
|
|
|
Insurance |
0.021 |
0.014 |
0.015 |
|
|
|
Interest on Loans |
15.360 |
11.305 |
7.844 |
|
|
|
Membership Fees |
0.567 |
0.899 |
0.000 |
|
|
|
Municipal Tax |
0.112 |
0.000 |
0.024 |
|
|
|
MVAT Tax |
5.518 |
7.076 |
5.382 |
|
|
|
Octroi |
0.203 |
0.065 |
0.072 |
|
|
|
Postage, Stamps and Courier Charges |
0.026 |
0.027 |
0.012 |
|
|
|
Printing and Stationery |
0.070 |
0.063 |
0.051 |
|
|
|
Professional Tax |
0.020 |
0.016 |
0.013 |
|
|
|
Professional Charges |
0.573 |
0.384 |
0.214 |
|
|
|
Rent Charges |
0.726 |
0.456 |
0.457 |
|
|
|
Salary |
1.520 |
1.147 |
0.897 |
|
|
|
Service Tax |
0.038 |
0.026 |
0.022 |
|
|
|
Sundry Expenses |
0.293 |
0.226 |
0.147 |
|
|
|
Telephone and Internet Charges |
0.050 |
0.044 |
0.023 |
|
|
|
Testing Charges |
0.022 |
0.002 |
0.010 |
|
|
|
Transport Charges |
0.691 |
0.440 |
0.400 |
|
|
|
Traveling Expenses |
0.902 |
0.572 |
0.225 |
|
|
|
Vehicle Maintenance and Petrol Charges |
0.197 |
0.135 |
0.097 |
|
|
|
Audit Charges |
0.000 |
0.015 |
0.027 |
|
|
|
Tooling and Dies Account |
0.000 |
0.127 |
0.000 |
|
|
|
TOTAL |
234.748 |
209.121 |
162.462 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
6.185 |
4.781 |
4.125 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
0.163 |
0.231 |
0.193 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT /
(LOSS) |
6.022 |
4.550 |
3.932 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.50
|
2.13 |
2.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.50
|
2.13 |
2.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.30
|
3.37 |
4.47 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.69 |
1.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
7.84
|
19.22 |
24.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
62.49
|
60.38 |
36.28 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT/EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
3.349 |
6.572 |
15.606 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Net worth |
3.349 |
6.572 |
15.606 |
|
|
|
|
|
|
Secured Loans |
0.291 |
5.164 |
0.000 |
|
Unsecured Loans |
81.935 |
121.168 |
122.310 |
|
Total borrowings |
82.226 |
126.332 |
122.310 |
|
Debt/Equity ratio |
24.552 |
19.223 |
7.837 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
166.572 |
213.895 |
240.882 |
|
|
|
28.410 |
12.617 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
166.572 |
213.895 |
240.882 |
|
Profit |
3.932 |
4.550 |
6.022 |
|
|
2.36% |
2.13% |
2.50% |
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 |
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 |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
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 |
No |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
No |
|
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 |
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.60.91 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.78.63 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
JAY |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
28 |
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.