MIRA INFORM REPORT
|
Report Date : |
16th May, 2006 |
IDENTIFICATION DETAILS
|
Name : |
K
K S K TANNING COMPANY PRIVATE LIMITED |
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Registered Office : |
15,
E M Balsubramanian Street, Thiru Nagar Colony, Erode
– 638 005, Tamilnadu, India |
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Country : |
India
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
26th
December, 1997 |
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CIN No.: |
U19111TZ1997PTC008241 |
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Com. Reg. No.: |
18-8241 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
CMBK03772G |
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PAN No.: (Permanent Account No.) |
AABCK5734B |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Subject
is engaged in the business of all kinds leather products. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
-- |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a established company having satisfactory track. It’s profit margin is
under pressure. Trade relations are fair. Payments are correct and as per
commitments. The company can be considered normal for business dealings at
usual trade terms and conditions with some caution inview of accumulated
losses. |
LOCATIONS
|
Registered Office : |
15,
E M Balsubramanian Street, Thiru Nagar Colony, Erode
– 638 005, Tamilnadu, India |
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Tel. No.: |
91-424-2211700/
2533517 |
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Fax No.: |
91-424-2211861/
2533519 |
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E-Mail : |
DIRECTORS
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Name : |
Mr.
K Mohamed Hyder |
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Designation : |
Managing
Director |
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Address : |
69/69A,
E M Balsubramanian Street, Thiru Nagar Colony, Erode
– 638 005, Tamilnadu, India |
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Date of Birth/Age : |
12.03.1963 |
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Date of Appointment : |
10.05.2002 |
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Name : |
Mr.
K Ahamed Sheik Mohideen |
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Designation : |
Director
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Address : |
69/69A,
E M Balsubramanian Street, Thiru Nagar Colony, Erode
– 638 005, Tamilnadu, India |
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Date of Birth/Age : |
27.07.1963 |
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Date of Appointment : |
26.12.1997 |
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MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Mr.
K Mohamed Hyder |
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821280 |
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Ms.
K Sameera |
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335220 |
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Ms. M Shabira |
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335220 |
BUSINESS DETAILS
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Line of Business : |
Subject
is engaged in the business of all kind leather products. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
About
2000 |
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Bankers : |
UTI
Bank Limited Sakar
I, Ground Floor, Opp. Gandhigram Railway Station, Off Ashram Road, Ahmedabad
– 380 009, Gujarat, India |
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Banking Relations : |
Satisfactory
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Auditors : |
Mr.
A Muruganandan Chartered
Accountants Erode,
Tamilnadu, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2500000 |
Equity
Shares |
Rs. 10/- |
Rs. 25.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2313000 |
Equity
Shares |
Rs. 10/- |
Rs. 23.130 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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23.130 |
23.130 |
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2] Reserves & Surplus |
|
0.000 |
0.000 |
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4] Profit and Loss Account |
|
(3.751) |
(9.936) |
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NETWORTH
|
|
19.379 |
13.194 |
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LOAN FUNDS |
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1] Secured Loans |
|
0.000 |
0.000 |
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2] Unsecured Loans |
|
4.682 |
4.684 |
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TOTAL
BORROWING
|
|
4.682 |
4.684 |
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TOTAL
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24.061 |
17.878 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
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21.597 |
24.241 |
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Capital work-in-progress
|
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0.000 |
0.000 |
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INVESTMENT
|
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0.005 |
0.005 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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49.626 |
20.746 |
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Sundry Debtors
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4.854 |
24.415 |
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Cash & Bank Balances
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|
0.966 |
3.613 |
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Loans & Advances
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|
16.145 |
0.759 |
Total Current Assets
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71.591 |
49.533 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities & Provisions
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69.132 |
55.901 |
Total Current Liabilities
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69.132 |
55.901 |
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Net Current
Assets
|
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2.459 |
(6.368) |
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TOTAL
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24.061 |
17.878 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
|
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
|
281.553 |
174.130 |
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Profit/(Loss) Before Tax
|
|
6.184 |
12.460 |
Provision for Taxation
|
|
0.000 |
0.000 |
Profit/(Loss) After Tax
|
|
6.184 |
12.460 |
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Total Expenditure
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264.105 |
160.657 |
KEY RATIOS
|
PARTICULARS |
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31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
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2.19 |
7.15 |
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Net Profit Margin
(PBT/Sales) |
(%) |
|
2.19 |
7.15 |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
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6.63 |
16.88 |
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Return on Investment (ROI)
(PBT/Networth) |
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0.32 |
0.94 |
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Debt Equity Ratio
(Total Liability/Networth) |
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4.81 |
5.59 |
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Current Ratio
(Current Asset/Current
Liability) |
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1.03 |
0.88 |
LOCAL AGENCY FURTHER INFORMATION
Operation Results
During
the year company leather division sold 218830 pieces of hides and earned profit
after depreciation of Rs. 5.461 millions. The wind mill division generated
4099908 units of power and earned the profit of Rs. 0.723 millions after
depreciation.
Last
year company purchased a Wind Turbine Generator for Rs. 9.459 millions and
erected the same in Thirunelveli district and began the commercial sale of
electricity to Tamilnadu Electricity Board with effect from 03.05.2003.
Dividend
In
order to augment resources directors do not propose any dividend and are
confident that you will appreciate and approve the same.
Particulars of Employees U/S 217 (A)
Section
217 (2A) of the Companies Act 1956, read with the company (particularly of
employees) Rules 1975 is not applicable to the company as none of the employees
are in receipt of remuneration Rs. 0.200 millions per month or Rs. 2.400
millions per annum.
Company Secretary
As
per the relevant provision of the Companies Act 1956, the company shall have
the appointed a company secretary in whole employment, as the paid up capital
of the company exceeds of Rs. 20 millions. The company has been taking earnest
efforts in recruiting a company secretary with requisite experience by
releasing advertisement, coordinating with HRD consultants and seeking the right
personal.
However,
the company has been availing the services of Mr. Venkateswaran, who is in
practice on whole time basis for compliance with the requirements of the
Companies Act and such other legislations. The Directors also continuously on
the look of company secretary for employing him on whole time employment. It is
therefore proposed to pray the appropriate authorities to condone the non
compliance with the requirement.
Bankers Charges Report as per
Registry
Name of the Company: K K S K Tanning
Company Private Limited
Presented by: Mr. K Ahamed Sheik
Mohideen, Director
|
1.
Date and description of the instrument creating or evidencing the charge
|
10.04.2004
deed of hypothecation of machinery and other movable fixed assets |
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2.
Amount secured by the charge /amount
owing on security of the charge |
Term
Loan of Rs. 10.000 millions |
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3.
Short Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be
given
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Wind
electric converters with all parts and accessories of value Rs. 15.000
millions Hypothecation
to the bank, all the movable plant and machinery, furniture and fixtures etc.
both present and future consisting of two wind electric converters, being movable
proprieties, now erected at or being erected or which may hereafter be
brought into or erected at or at present erected at udumalpet area and also
the plant and machinery which may at any time hereafter belonging to borrower
or borrower disposal and now or at any time hereafter stored or be stored or
brought into upon or in course of transit or awaiting transit by any mode of
transport of their factory or premises or at any other premises or
place. |
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4.
Gist of the terms and conditions and extent and operation of the charge. |
Terms
loan is repayable on demand. To
secured as a continuing security the due repayment by the borrower to the
bank art any time on demand of all the monies now or at any time and from
time to time hereafter due / may become due and owing by the borrower to the
bank in respect of and under the above said credit facilities and interest
and commission thereon and all legal and other costs, charges, payments,
re-imbursements and expenses relating thereto and payable hereunder and
incidental to this security or for enforcement thereof. Interest
as may be communicated by bank from time to time. |
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5.
Names, address and description of the
persons entitled to charge |
UTI
Bank Limited Registered
Ofice: Sakar I, Ground Floor, Opp. Gandhigram Railway Station, Off Ashram
Road, Ahmedabad – 380 009, Gujarat, India Branch
Office: Perundurai Road, Erode – 639 003, Tamilnadu, India |
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6.
Date and brief description of instrument modifying the charge |
Nil
|
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7.
Particular of modification specifying the terms and conditions or the extent
or operation of the charge in which modification is made and the details of modification |
Nil
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The
Company’s Fixed Assets of important value includes:
- Land
- Leasehold Land
- Building
- Plant and Machinery
- Furniture and Fixtures
- Computer
- Vehicles
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 records 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.45.34 |
|
UK
Pound |
1 |
Rs.85.68 |
|
Euro |
1 |
Rs.58.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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
|
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |