MIRA INFORM REPORT

 

 

Report No. :

344828

Report Date :

15.10.2015

 

IDENTIFICATION DETAILS

 

Name :

VARUN INDUSTRIES LIMITED (w.e.f. April, 2005)

 

 

Formerly Known As :

VARUN CONTINENTAL LIMITED

 

 

Registered Office :

13, Shankheshwar Darshan Co-operative Society Limited, A. G. Pawar Cross Lane, Byculla (East), Mumbai – 400 027, Maharashtra

Tel. No.:

91-22-23727400/23727411

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

08.03.1996

 

 

Com. Reg. No.:

11-097945

 

 

Capital Investment / Paid-up Capital :

Rs. 291.139 Million

 

 

CIN No.:

[Company Identification No.]

L28990MH1996PLC097945

 

 

IEC No.:

0389023825

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACV2069F

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and exporter of stainless steel cookware, kitchenware, housewares and general merchandise.

 

 

No. of Employees :

(As on 31.03.2013)

254 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Business under liquidation

 

 

Payment Behaviour :

--

 

 

Litigation :

--

 

 

Comments :

Mr. Pradeep Agarwal, Manager has informed that the company is under the process of liquidation.

 

As per our source and investigation we found that, the company has failed to repay loans worth over Rs.20000.000 Million, has become the first big-ticket defaulter to go into liquidation in the FY15. Management informed the Bombay Stock Exchange (BSE) that the liquidation proceedings have been initiated.

 

According to HC order, since the company has failed to pay installments. The company is in the process of taking necessary legal action before the appropriate Court for setting aside the said order.

 

Moreover, the company stands at 11th spot on the list of top loan defaulters, owing a total of Rs.11000.000 Million to PSU banks alone. The list has been prepared by All India Bank Employees Association (AIBEA).

 

In view of aforesaid, the company cannot be considered for any business dealings.   

 

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

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under :

 

Suit-filed accounts of Rs. 10.000 Million and above 

 

Borrowers’ Name :

Varun Industries Limited

Address :

13, Shankheshwar Darshan Co-operative Society Limited, A. G. Pawar Cross Lane, Byculla (East), Mumbai – 400 027, Maharashtra, India

Name of Individual :

Kailash Shrikumar Agarwal

Kirankumar Navratanmal Mehta

Kuresh Taherbhai Rajkotwala

Mahender  Ramchand Tahilramani

Name of Credit Grantors / Bank and Branch:

Bank of Baroda, Nariman Point 

Amount (Rs. In Million) :

Rs.2132.200

 

 

 

INFORMATION PARTED BY (PARTIAL DETAILS)

 

Name :

Mr. Pradeep Agarwal

Designation :

Manager

Contact No.:

91-9819909977

Date :

12.10.2015

 

 

LOCATIONS

 

Registered Office :

13, Shankheshwar Darshan Co-operative Society Limited, A. G. Pawar Cross Lane, Byculla (East), Mumbai – 400 027, Maharashtra, India

Tel. No.:

91-22-23727400/23727411

Mobile No.:

91-9819909977 (Mr. Pradeep)

Fax No.:

91- 22-23748686

E-Mail :

vil@varun.com

jitendra.gandhi@varun.com

Website :

www.varun.com

 

 

Stainless Steel Kitchenware and Houseware Manufacturing Plant, Vasai:

S. No.14/3, Village Waliv, Vasai-Vajreshwari Road, Taluka Vasai, Vasai (East), District Thane – 401 208, Maharashtra, India

Tel. No.:

91-250-6050199/299/399/499

Fax No.:

91-250-2451781/2452248

 

 

Stainless Steel Sheet Re-rolling Mill, Jodhpur:

E-371, Marudhar Industrial Estate, Phase II, Basni, Jodhpur – 342 005, Rajasthan, India

Tel. No.:

91-291-274 6622/33

Fax No.:

91-291-274 6644

 

 

Pressure Cookers Plant, Nasik:

Plot No.E-19 B&C, M.I.D.C., Sinnar Industrial Area, Sinnar, Dist. Nasik – 422 113, Maharashtra, India

Tel. No.:

91-2551-230831/910/864

Fax No.:

91-2551-230879

 

 

Wind power sites:

·         Village Soda Mada, Jaisalmer, Rajasthan

·         Village Hansuwa Gorera, Jaisalmer, Rajasthan

·         Village Jaisalmer, Jaisalmer, Rajasthan

·         Village Mavadi, Tirunelveli, Tamilnadu

·         Village Tenkalam, Tirunelveli, Tamilnadu

·         Village Sirwa, District Jaisalmer, Rajasthan

·         Village Chord, District Jaisalmer, Rajasthan

 

 

DIRECTORS

 

As on 31.03.2015

 

Name :

Mr. Kirankumar Navratanmal Mehta

Designation :

Chairman and Managing Director

Address :

401/A, Shankeshwar Darshan, A. G. Pawar Cross Lane, Byculla – (East), Mumbai-400027, Maharashtra, India

Date of Appointment :

01.04.2006

DIN No.:

00022882

 

 

Name :

Mr. Kailash Shriram Agarwal

Designation :

Managing Director

Address :

A-1-502, Shankeshwar Darshan, A. G. Pawar Cross Lane, Byculla – (East), Mumbai-400027, Maharashtra, India

Date of Appointment :

01.04.2006

DIN No.:

00023426

 

 

Name :

Roop Narain Sharma

Designation :

Additional Director

Address :

1402, Orchid Tower, Vasant Valley Complex,, Film City Road, Malad East, Mumbai, 400097, Maharashtra, India

Date of Appointment :

25.02.2014

DIN No.:

01720366

 

 

Name :

Mr. Raaja Jain

Designation :

Independent Director

 

 

Name :

Mr. Mahender Tahilramani

Designation :

Independent Director

 

 

Name :

Mr. Kuresh Rajkotwala

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Jitendra J. Gandhi

Designation :

General Manager (Corporate) and Company Secretary

 

 

Name :

Mr. Pradeep Agarwal

Designation :

Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

Total No. of Shares

% of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

10331218

35.49

http://www.bseindia.com/include/images/clear.gifSub Total

10331218

35.49

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

10331218

35.49

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

1074613

3.69

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

1280299

4.40

http://www.bseindia.com/include/images/clear.gifSub Total

2354912

8.09

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4315453

14.82

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

7191316

24.70

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4644926

15.95

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

276120

0.95

http://www.bseindia.com/include/images/clear.gifClearing Members

29800

0.10

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

246320

0.85

http://www.bseindia.com/include/images/clear.gifSub Total

16427815

56.43

Total Public shareholding (B)

18782727

64.51

Total (A)+(B)

29113945

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

29113945

0.00

 

 

 

Shareholding belonging to the category "Promoter and Promoter Group"

 

S. No.

Name Of The Shareholder

Details Of Shares Held

No. Of Shares Held

As A % Of Grand Total

1

Kailashkumar Shriram Agarwal

54,50,000

18.72

2

Kiran Kumar Mehta

29,33,091

10.07

3

Kailash Shriram Agarwal

19,29,827

6.63

4

Leelakumari C Bhandari

8,800

0.03

5

Champalal Jethmalji Bhandari

8,000

0.03

6

Navratan Chuunilal Mehta

800

0.00

7

Sanjay C Bhandari

600

0.00

8

Anuradha K Agarwal

100

0.00

 

Total

1,03,31,218

35.49

 

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

 

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

1

VSS Metals Private Limited

920116

3.16

2

ACG Associated Capsules Private Limited

885000

3.04

3

Sicom Limited

850000

2.92

4

Albula Investment Fund Limited

660000

2.27

 

Total

3315116

11.39

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and exporter of stainless steel cookware, kitchenware, housewares and general merchandise.

 

 

Products :

·         Stainless steel cookware

·         Kitchenware

·         Housewares

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

Not Available

Imports :

Not Available

 

Not Available

Terms :

Not Available

 

PRODUCTION STATUS NOT AVAILABLE

 

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Not Available

Remark:

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Not Available

Remark:

Not Available

 

 

No. of Employees :

(As on 31.03.2013)

254 (Approximately)

 

 

Bankers :

·         Indian Bank

·         UCO Bank

·         Syndicate Bank

·         Central Bank of India

·         State Bank of Travancore

·         State Bank of India

·         United Bank of India

·         Bank of India

·         IDBI Bank Limited

·         Bank of Baroda

·         Allahabad Bank

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Million)

31.03.2012

(Rs. in Million)

Long-term Borrowings

 

 

Working Capital Term Loan

13522.966

0.000

Funding Interest on Capital 

1151.340

0.000

Term Loan from Banks

632.781

684.195

Vehicle Loan (Long term finance lease)

38.726

63.712

Less: Current maturities of long term loans

(4297.321)

(197.941)

Less: Current maturities of long term finance lease

(28.064)

(29.079)

 

 

 

Short-term borrowings

 

 

Export Packing Credit

0.000

1545.460

FDBP/FDUBP

1327.273

6853.220

Letter of Credit Devolved

0.000

1037.975

Cash Credit / ODBD

1230.010

880.772

Total

13577.711

10838.314

 

Note :

 

Foreign Currency Term Loan from Indian Bank outstanding Rs. 11.839 Million (P.Y. Rs. 28.777 Million ) for Vasai Plant is secured by way of charge on Equitable Mortgage of Land & Building, Hypothecation of Plant & Machinery purchased by availing such term loan and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The Term Loan is further secured by second Pari Passu charge on the current assets of the Company.

 

Foreign Currency Term Loan from UCO Bank outstanding Rs. 16.818 Million (P.Y. Rs. 31.898 Million) for Jodhpur Plant is secured by way of first charge on Equitable Mortgage of Land & Building, Hypothecation of Plant & Machinery purchased by availing such term loan and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The Term Loan is further secured by second Pari Passu charge on the current assets of the Company.

 

Term Loan from IDBI Bank outstanding of Rs. 59.197 Million (P.Y. 601.69) for Nashik Plant is secured by way of exclusive charge on Equitable Mortgage of Land & Building, Hypothecation of Plant & Machinery purchased by availing such term loan and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal.

 

Three Foreign Currency Term Loans from State Bank of Travancore outstanding of Rs. 39.779 Million, Rs. 32.224 Million and Rs. 210.421 Million respectively, totalling to Rs. 282.424 Million (P.Y. Rs. 279.915 Million) for Wind Power Projects are secured by way of exclusive charge on the Fixed Assets of the Wind Power Projects, Fixed Deposits under lien with bank and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal.

 

Term Loans from Indian Bank outstanding Rs. 193.681 Million ( 196.082 Million for Wind Power Project are secured by way of exclusive charge on the Fixed Assets of the Wind Power Projects and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal.

 

Term Loans from Indian Bank outstanding Rs. 67.878 Million (P.Y. Rs. 87.352 Million ) for Oil Rig is secured by way of exclusive charge on the Fixed Assets of the Oil Rig and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The term loan is repayable in remaining 9 equal quarterly installments and carries interest rate of 12.75%.

 

Vehicle Loans are secured by way of hypothecation of the respective vehicles.

 

As on 31.03.13 continuing default in repayment of installment due of term loan from State Bank of Travancore of Rs. 49.153 Million, Central Bank of India of Rs.6.946 Million, UCO Bank of Rs.16.819 Million, IDBI Bank of Rs.34.375 Million and Indian Bank of Rs.19.380 Million

 

As on 31.03.13 continuing default in repayment of interest due on term loan from State Bank of Travancore of Rs. 18.409 Million, Central Bank of India of Rs.22.237 Million, UCO Bank of Rs.1.902 Million, IDBI Bank of Rs.2.897 Million and Indian Bank of Rs.8.091 Million.

 

 

Auditors :

 

Name :

Chunnilal and Company

Chartered Accountants

Address :

A/102, Shreeji Kiran C.H.S. Limited, Oppsite Dwarkadhish Temple, Tejpal Road, Vile Parle (East), Mumbai – 400 057, Maharashtra, India

Telefax No. :

91- 22 26166811 / 22

E-Mail :

admin@chunnilalandco.com

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiary Companies

(As on 31.03.2013) :

·         Shri Sai Jewels Private Limited

·         Varun Jewels Private Limited

·         Varun Petroleum Corporation Private Limited

·         Varun Minerals Corporation Private Limited

·         Varun Holdings Limited, Mauritius

·         Varun Petroleum Limited, Mauritius

·         Varun Mines ans Minerals Limited, Mauritius

 

 

Step down Subsidiary Companies(As on 31.03.2013)  :

·         Varun International Trading FZE, UAE

·         Varun Global Trading Pte. Limited, Singapore (Discontinued from 29th March, 2013)

·         Varun Petroleum SARL, Madagascar  (Discontinued from 29th March, 2013)

·         Oil and Gas Incorporation SARL, Madagascar (Discontinued from 29th March, 2013)

·         Varun International SARL, Madagascar  (Discontinued from 29th March, 2013)

·         Madagascar Energy Corporation SARL, Madagascar  (Discontinued from 29th March, 2013)

·         Varun Energy Corporation SARL, Madagascar  (Discontinued from 29th March, 2013)

·         Varun SARL, Madagascar (Discontinued from 29th March, 2013)

 

 

Associate (As on 31.03.2013):

·         Varun Torian International SARL, Madagascar (Discontinued from 29th March, 2013)

 

 

Enterprises over which Key Managerial person have significant influence (As on 31.03.2013)  :

·         K.K. Enterprises

·         Varun Real Estate (India) Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs. 500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

29113945

Equity Shares

Rs.10/- each

Rs. 291.139 Million

 

 

 

 

 

 

Note :

 

The Company has one class of Equity Shares having a par value of Rs. 10/- each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

 

70,00,000 (P.Y. 70,00,000) Equity Shares were allotted on exercise of warrants in the Financial Year 2010-11.

 

Details of Shares held by each shareholder holding more than 5% shares:

 

Particular

As on 31.03.2013

 

No of Shares

Amount

(Rs. In Million)

Mr. Kiran Mehta

4064591

13.96

Mr. Kailash Agarwal

7379827

25.35

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

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

291.139

291.139

291.139

(b) Reserves & Surplus

2281.595

2684.282

4325.090

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

155.475

0.000

0.000

Total Shareholders’ Funds (1) + (2)

2728.209

2975.421

4616.229

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

11020.428

520.887

381.572

(b) Deferred tax liabilities (Net)

105.193

117.909

117.909

(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)

11125.621

638.796

499.481

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3606.099

11795.821

8772.914

(b) Trade payables

497.096

5849.414

7653.473

(c) Other current liabilities

4385.952

245.441

182.418

(d) Short-term provisions

19.574

22.179

83.060

Total Current Liabilities (4)

8508.721

17912.855

16691.865

 

 

 

 

TOTAL

22362.551

21527.072

21807.575

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3806.895

4085.853

3904.286

(ii) Intangible Assets

0.139

0.232

0.397

(iii) Capital work-in-progress

13.475

12.505

26.223

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

170.067

170.067

108.677

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

3990.576

4268.657

4039.583

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

341.051

867.802

1075.294

(c) Trade receivables

17238.720

14839.885

12874.219

(d) Cash and cash equivalents

83.002

960.944

3331.789

(e) Short-term loans and advances

378.973

271.990

311.726

(f) Other current assets

330.229

317.794

174.964

Total Current Assets

18371.975

17258.415

17767.992

 

 

 

 

TOTAL

22362.551

21527.072

21807.575

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

1680.250

31095.514

29412.940

 

 

Other Income

1719.682

227.169

141.437

 

 

TOTAL                                     (A)

3399.932

31322.683

29554.377

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

710.685

1428.285

1212.578

 

 

Purchases of Stock-in-Trade

117.405

28321.309

26128.397

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

474.031

131.042

(49.112)

 

 

Employees benefits expense

78.985

180.495

160.418

 

 

Other expenses

212.996

580.716

403.918

 

 

TOTAL                                     (B)

1594.102

30641.847

27856.199

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

1805.830

680.836

1698.178

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

2146.437

1160.755

912.063

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

(340.607)

(479.919)

786.115

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

177.672

191.818

190.545

 

 

 

 

 

Less

Discount Provided to Debtors

0.000

1606.064

0.000

 

 

 

 

 

Add

Exchange Fluctuation Gain (Net) on Conversion of Current Assets and Current Liabilities in Foreign currency

161.098

700.249

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

(357.181)

(1577.552)

595.570

 

 

 

 

 

Less

TAX (H)

(12.406)

0.400

202.164

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

(344.775)

(1577.952)

393.406

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(629.637)

948.315

645.321

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

0.000

29.505

 

 

Proposed Dividend

0.000

0.000

52.405

 

 

Provision for Tax on Dividend

0.000

0.000

8.502

 

BALANCE CARRIED TO THE B/S

(974.412)

(629.637)

948.315

 

 

 

 

 

 

Earnings Per Share (Rs.)

(11.84)

(54.20)

17.21

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2013

31.03.2012

31.03.2011

Current Maturities of Long term debt

3661.225

192.009

149.830

Cash generated from operations

(111.170)

(2181.438)

4534.641

Net cash flow from operating activities

(155.412)

(2348.371)

4324.948

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin

(PAT / Sales)

(%)

(20.52)

(5.07)

1.34

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

107.47

2.19

5.77

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(1.61)

(7.39)

2.75

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.13)

(0.53)

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

6.70

4.20

2.02

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.16

0.96

1.06

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

291.139

291.139

291.139

Reserves & Surplus

4325.090

2684.282

2281.595

 Share Application money pending allotment

0.000

0.000

155.475

Net worth

4616.229

2975.421

2728.209

 

 

 

 

long-term borrowings

381.572

520.887

11020.428

Short term borrowings

8772.914

11795.821

3606.099

current maturities of long-term debts

149.830

192.009

3661.225

Total borrowings

9304.316

12508.717

18287.752

Debt/Equity ratio

2.016

4.204

6.703

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

29412.940

31095.514

1680.250

 

 

5.721

(94.596)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

29412.940

31095.514

1680.250

Profit

393.406

(1577.952)

(344.775)

 

1.34%

(5.07%)

(20.52%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of establishment

Yes

2]

Constitution of the entity Incorporation details

Yes

3]

Locality of the entity

Yes

4]

Premises details

No

5]

Buyer visit details

--

6]

Contact numbers

Yes

7]

Name of the person contacted

Yes

8]

Designation of contact person

Yes

9]

Promoter’s background

Yes

10]

Date of Birth of Proprietor / Partners / Directors

No

11]

Pan Card No. of Proprietor / Partners

No

12]

Voter Id Card No. of Proprietor / Partners

No

13]

Type of business

Yes

14]

Line of Business

Yes

15]

Export/import details (if applicable)

No

16]

No. of employees

No

17]

Details of sister concerns

Yes

18]

Major suppliers

No

19]

Major customers

No

20]

Banking Details

Yes

21]

Banking facility details

Yes

22]

Conduct of the banking account

--

23]

Financials, if provided

Yes

24]

Capital in the business

Yes

25]

Last accounts filed at ROC, if applicable

No

26]

Turnover of firm for last three years

Yes

27]

Reasons for variation <> 20%

--

28]

Estimation for coming financial year

No

29]

Profitability for last three years

Yes

30]

Major shareholders, if available

Yes

31]

External Agency Rating, if available

No

32]

Litigations that the firm/promoter involved in

--

33]

Market information

--

34]

Payments terms

No

35]

Negative Reporting by Auditors in the Annual Report

No

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Million)

31.03.2012

(Rs. in Million)

Short-term borrowings

 

 

Loans From banks

105.317

85.920

Loans From others

943.499

1392.474

Total

1048.816

1478.394

 

 

PERFORMANCE REVIEW: (As on 31.03.2013)

 

In view of the worldwide recessionary factors, the Company`s financials have been affected to a greater extent resulting in approach to the Consortium of Bankers for approving Corporate Debt Restructuring (CDR) package for the Company.

 

In view of several constraints, there was delay in complying with the requirements of CDR mechanism. This has result in adverse financial results primarily arising out of the low level of operations of the Company.

 

However, efforts are under way to revive the operations including exports of the Company.

 

FUTURE OUTLOOK:

 

The Company is hopeful of improving its financial position. The Company is also undertaking all necessary efforts to reduce costs and increase profitability.

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10316675

28/03/2014 *

75,000,000.00

ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED

THE RUBY, 10TH FLOOR, 29, SENAPATI BAPAT MARG, DADAR (WEST), MUMBAI, Maharashtra - 400028, INDIA

C40765869

2

10319505

05/11/2011

2,732,400,000.00

UNITED BANK OF INDIA

OVERSEAS (MUMBAI) BRANCH, U.B.I. BUILDING, 1ST FLR 
, 25, SIR PHEROZE SHAH MEHTA ROAD, MUMBAI, Maharashtra - 400001, INDIA

B25970062

3

10316872

09/10/2011

680,000,000.00

Bank of Baroda

PB No. 11745, Foreshore Building,, Nariman Point, 
, Mumbai, Maharashtra - 400021, INDIA

B25019829

4

10314286

20/09/2011

194,500,000.00

Central Bank of India

Overseas Branch,, Bajaj Bhavan, 1st Floor, Nariman Point,, Mumbai, Maharashtra - 400021, INDIA

B23975345

5

10307438

10/09/2011

300,000,000.00

Indian Bank

Mumbai Fort Branch, Mumbai, Mumbai, Maharashtra - 
400001, INDIA

B21062096

6

10295766

16/06/2011

300,000,000.00

ALLAHABAD BANK

INDUSTRIAL FINANCE BRANCH, ALLAHABAD BANK BUILDING 
, 2ND FLOOR, 37, M. S. MARG, FORT, MUMBAI, Maharashtra - 400023, INDIA

B16382210

7

10272195

28/01/2011

296,400,000.00

United Bank of India

Overseas Branch, U.B. I Building, 1st Floor, 25, 
Sir Pheroze Shah Mehta Road,, Mumbai, Maharashtra 
- 400001, INDIA

B06503296

8

10260486

26/03/2014 *

150,000,000.00

JM Financial Asset Reconstruction Company Private 
Limited

7th Floor, Cnergy,, Appasaheb Marathe Marg, Prabhadevi,, Mumbai, Maharashtra - 400025, INDIA

C37045648

9

10259352

28/03/2014 *

1,350,000,000.00

ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED

THE RUBY, 10TH FLOOR, 29, SENAPATI BAPAT MARG, DADAR (WEST), MUMBAI, Maharashtra - 400028, INDIA

C40764961

10

10241763

29/09/2010

1,000,000,000.00

UNITED BANK OF INDIA

Overseas Branch, U. B. I. Building, 1st Floor,, 5 
,Sir Pheroze Shah Mehta Road,, Mumbai, Maharashtra 
- 400001, INDIA

A95335493

 

 

* Date of charge modification

 

 

CONTINGENT LIABILITIES: (As on 31.03.2013)

 

(i) Disputed Demand raised by Income Tax department for several financial years of Rs. 317.800 Million is under appeal and rectification

 

(ii) Disputed Demand raised by Sales Tax dept. for the FY 2007-08 is Rs. 52.800 Million against which company has filed appeal and deposited Rs. 5.300 Million

 

(iii) Corporate Guarantee issued in favour of banks for their credit facility to Varun Jewels Private Limited of Rs.

1830.000 Million

 

(iv) Corporate Guarantee issued in favour of banks for their credit facility to Shri Sai Jewels Private Limited of Rs. 648.000 Million

 

(v) Corporate Guarantee issued in favour of bank for credit facility to M/s. K.K. Enterprises of Rs. 120.000 Million

 

(vi) Corporate Guarantee issued in favour of bank for credit facility to Varun International Trading FZE, UAE of USD 30 mn.

 

 

FIXED ASSETS

 

·         Land

·         Plant and Machinery

·         Furniture and Fixtures

·         Office Equipments

·         Computer

·         Vehicles

·         Oil Rig

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]             INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]             Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]             Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]             Record on Financial Crime :

               Charges or conviction registered against subject:                                                                                None

 

5]             Records on Violation of Anti-Corruption Laws :

               Charges or investigation registered against subject:                                                                             None

 

6]             Records on Int’l Anti-Money Laundering Laws/Standards :

               Charges or investigation registered against subject:                                                                             None

 

7]             Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]             Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]             Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]           Press Report :

               No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.72

UK Pound

1

Rs.99.29

Euro

1

Rs.73.59

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

TRI

 

 

Report Prepared by :

JYTK

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.