MIRA INFORM REPORT
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Report No. : |
308328 |
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Report Date : |
28.02.2015 |
IDENTIFICATION DETAILS
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Name : |
VINOD COTTON CORPORATION |
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Registered
Office : |
14, New Shakti Nagar, Bhatinda – 151001, Punjab |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Establishment : |
01.04.2012 |
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Capital
Investment : |
Not Divulged |
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TIN No.: |
08573409692 |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners |
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Line of Business
: |
Trader, Exporter and Importer of Cotton. |
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No. of Employees
: |
12 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject was erstwhile started in 1994 as a proprietorship concern.
Subsequently in April 2012 it was reconstituted as a partnership concern. It
is a well-established entity having moderate track record. Management has witnessed a decent revenue base, whereas has reported a
low profit margin as a result of limited value adding nature of the business
during FY14. The rating also takes into consideration the continued funding support
of the promoters by way of capital infusion and unsecured loans. As per relevant information available from indirect source, we found
that the concern possesses a below average debt protection metrics. However, trade relations seem to be fair. Business is active. Payment
terms are reported as slow but correct. In view of experienced promoters, the concern 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.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
Long term rating = BB- |
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Rating Explanation |
Moderate risk of default regarding timely
servicing of financial obligations. |
|
Date |
January 16, 2015 |
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
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Name : |
Mr. Mukesh |
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Designation : |
Manager |
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Contact No.: |
91-9216523687 |
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Date : |
27.02.2015 |
LOCATIONS
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Registered Office : |
14, New Shakti Nagar, Bhatinda – 151001, Punjab, India |
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Tel. No.: |
91-164-2236249 |
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Mobile No.: |
91-9216523687 (Mr. Mukesh) |
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Fax No.: |
91-164-2236249 |
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E-Mail : |
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Website : |
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Branch Office : |
2/14, Housing Bord, Ganganagar, Rajasthan, India |
PARTNERS
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Name : |
Mr. Vinod Kumar Somani |
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Designation : |
Partner |
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Address : |
No. 54, Kamal Cinema Road, New Shakti Nagar, Bathinda – 151001,
Punjab, India |
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Name : |
Mr. Shyam Sunder Somani |
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Designation : |
Partner |
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Address : |
No. 54, Kamal Cinema Road, New Shakti Nagar, Bathinda – 151001,
Punjab, India |
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Name : |
Mr. Vikas Somani |
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Designation : |
Partner |
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Address : |
No. 54, Kamal Cinema Road, New Shakti Nagar, Bathinda – 151001,
Punjab, India |
KEY EXECUTIVES
|
Name : |
Mr. Mukesh |
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Designation : |
Manager |
BUSINESS DETAILS
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Line of Business : |
Trader, Exporter and Importer of Cotton. |
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Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
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Products : |
Cotton |
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Countries : |
· China · Hong Kong · Vietnam · Egypt |
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Imports : |
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Products : |
-- |
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Countries : |
-- |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Retailers and End Users
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No. of Employees : |
12 (Approximately) |
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Bankers : |
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Facilities : |
-- |
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Auditors : |
Not Divulged |
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Associates/Subsidiaries : |
·
Vinod
Cotton Corp. Private Limited CIN No.:
U17121DL2011PTC214029 Address: 153, 2nd Floor,
Katra Nawab, Chandni Chowk, Delhi – 110006, India Activity: Importer,
Exporter and Trader of Cotton. TIN No.: 08113409169
(Rajasthan) 07316929610
(Delhi) PAN No.: AADCV5438R |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Not Divulged |
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Borrowed : |
Not Divulged |
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Total : |
Not Divulged |
FINANCIAL DATA
[all figures are in
Rupees Millions]
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
|
Net Sales |
|
5845.700 |
4857.000 |
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Net Profit |
|
0.790 |
0.460 |
NOTE: Financials for
the year 2014 and 2013 are taken from CRISIL Rating.
Expected Sales (2014-2015) : Rs. 6000.000 Millions
The above information has been parted by Mr. Mukesh [Manager]
Note : Sole Proprietary and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Net Sales |
4857.000 |
5845.700 |
|
|
|
20.356 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
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|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Net Sales |
4857.000 |
5845.700 |
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Net Profit |
0.460 |
0.790 |
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|
0.01% |
0.01% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
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2] |
Locality of the firm |
Yes |
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3] |
Constitutions of the firm |
Yes |
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4] |
Premises details |
No |
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5] |
Type of Business |
Yes |
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6] |
Line of Business |
Yes |
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7] |
Promoter's background |
No |
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8] |
No. of employees |
Yes |
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9] |
Name of person contacted |
Yes |
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10] |
Designation of contact
person |
Yes |
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11] |
Turnover of firm for last
two years |
Yes |
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12] |
Profitability for last
two years |
Yes |
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13] |
Reasons for variation
<> 20% |
-- |
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14] |
Estimation for coming financial
year |
Yes |
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15] |
Capital in the business |
No |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
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18] |
Major customers |
No |
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19] |
Payments terms |
Yes |
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20] |
Export / Import details
(if applicable) |
Yes |
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21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
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24] |
Banking facility details |
No |
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25] |
Conduct of the banking
account |
-- |
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26] |
Buyer visit details |
-- |
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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 |
Yes |
PRESS RELEASE
GOVT ORDERS COTTON
CORP TO BUY PRODUCE, CHECK PRICE FALL
The
prices have fallen due to an expected bumper harvest
November 12, 2014
As cotton prices
dropped below the minimum support price fixed by the Centre, the government on
Wednesday directed the Cotton Corporation of
India to increase its purchase from the major producers, including Gujarat and
Maharashtra.
The prices have fallen due to an expected bumper
harvest.
The two states — Gujarat and Maharashtra —
account for almost 80 per cent of the total cotton produced in the country.
“The CCI has been asked to step up its
procurement operation by opening more centres wherever necessary,” Textiles
Minister Santosh Gangwar told reporters after a meeting with the Agriculture Minister Radha Mohan Singh. The
cotton season runs from October to September.
Commerce Minister Nirmala Sitharaman, too,
participated in the meeting. The CCI has so far purchased around 250000 bales
of cotton (1 bale = 170 kg) in the current season, mainly from the southern
states.
The central government has fixed a minimum
support price (MSP) of Rs 3,750 per quintal for medium staple cotton and Rs
4,050 per quintal for long staple cotton for the 2014-15 season. However, due
to expected bumper harvest, prices have dropped below these levels in many places
across the country. The CCI’s aggressive intervention will prevent distress
sale by farmers.
“The CCI has been instructed to open more centres and
collect cotton from the farmers’ doorsteps,” another official said.
Prices have also slumped below the MSP in many
places because of weak global markets, which has stopped exports.
As per government first advanced estimate for
2014-15 season, cotton production in India is expected to be around 34.62
million bales, down from 36.5 million bales last year.
However, the estimates seem to be on the
conservative side as late rains pushed up harvest. The estimates were released
in September.
According to the CCI, production in India in
2014-15 is expected to be around 40 million bales, while the opening stock for
the season is expected to be around 6 million bales making a total supply
during the season of around 46 million bales.
However, domestic consumption is estimated at 30
million bales, making a surplus of around 1.7 million bales. A weak export
market has made absorption of this surplus difficult.
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. 61.79 |
|
|
1 |
Rs. 95.42 |
|
Euro |
1 |
Rs. 69.29 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
BVA |
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 |
|
--PROFITABILITY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & 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.