MIRA
INFORM REPORT
|
Report Date : |
11.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
WELLKNIT APPARELS PRIVATE LIMITED |
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Registered Office : |
# 25 [Old 10], College Road, Nungambakkam, Chennai – 600006, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
03.03.1988 |
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Com. Reg. No.: |
18-15427 |
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CIN No.: [Company
Identification No.] |
U18101TN1988PTC015427 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEW03007E |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturer of all types textile garments and clothing accessories. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 660000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having satisfactory track. Directors are
reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are usually correct and as per
commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Corporate Office : |
# 25 [Old 10], College Road, Nungambakkam, Chennai – 600006,
Tamilnadu, India |
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Tel. No.: |
91-44-28266301 / 8271430 / 8281096 |
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Fax No.: |
91-44-28281096 |
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E-Mail : |
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Factory 1 : |
Phase II, Plot A 11-A, MEPZ-SEZ, Tmbaram, Chennai – 600045, Tamilnadu,
India |
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Tel. No.: |
91-44-22368128 / 22368129 |
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Fax No.: |
91-44-22368112 |
DIRECTORS
|
Name : |
Mr. Woo Ping Tung |
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Designation : |
Director |
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Address : |
House A3, Sea View Villado, 216 Sai Kung, N. T., Hong Kong |
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Date of Birth/Age : |
23.03.1946 |
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Date of Appointment : |
03.08.1991 |
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Date of Ceasing : |
17.01.2005 |
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Name : |
Mr. Vincent Shek Yim Kwan |
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Designation : |
Director |
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Address : |
No. 1, Alnwick road, A 6, Kowloon, Hong Kong |
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Date of Birth/Age : |
23.09.1944 |
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Date of Appointment : |
18.10.1992 |
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Date of Ceasing : |
17.01.2005 |
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Name : |
Mr. C. R. Badrinath |
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Designation : |
Director |
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Address : |
No. 3, Valliammai Achi Street, Kotturpuram, Chennai – 600085,
Tamilnadu, India |
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Date of Birth/Age : |
30.09.1957 |
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Date of Appointment : |
11.11.1989 |
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Name : |
Mr. Kong Bing Chun |
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Designation : |
Director |
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Address : |
12/F, 850-870, Lai Chi Kok Road, Hong Kong |
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Date of Birth/Age : |
18.04.1939 |
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Date of Appointment : |
01.10.1996 |
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Date of Ceasing : |
17.04.1989 |
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Name : |
Mr. Man Wai Tsang |
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Designation : |
Director |
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Address : |
No. 107-B, 16/F, Broad Way, Mei Foo Sun Chuen, Kowloon, Hong Kong |
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Date of Birth/Age : |
09.12.1954 |
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Date of Appointment : |
11.11.1997 |
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Date of Ceasing : |
17.01.2005 |
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Name : |
Mr. Louie Kam – Hung Tsui |
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Designation : |
Director |
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Address : |
House 3, Greenwood Terrace, Shatin, N. T. Hong Kong |
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Date of Birth/Age : |
29.09.1957 |
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Date of Appointment : |
10.11.2003 |
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Date of Ceasing : |
17.01.2005 |
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Name : |
Mr. Woo Kwok Lap |
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Designation : |
Director |
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Address : |
3/F, KI Lung Street, Shamsuipo, Kowloon, Hong Kong |
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Date of Birth/Age : |
08.01.1959 |
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Date of Appointment : |
01.07.2004 |
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Date of Ceasing : |
18.01.2005 |
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Name : |
Mr. K. N. Gopalan |
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Designation : |
Director |
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Address : |
Flat 3 A, ‘Lasya’, 94, St. Mary’S Road, Alwarpet, Chennai – 600018,
Tamilnadu, India |
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Date of Birth/Age : |
02.05.1926 |
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Date of Appointment : |
30.09.2005 |
KEY EXECUTIVES
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Name : |
Mr. T. Balasubramanian |
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Designation : |
Company Secretary |
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Address : |
4 A/1, Anand Apartments, J. P. Avenue, Dr. Radhakrishnan Salai,
Chennai – 600004 [Res.] : G 2 Anu Homes, 6, 1st Cross, 6th MainStreet,
Dr. Subburayan Nagar, Kodambakkam, Chennai – 600024 |
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Tel No. : |
91-44-55381661 / 52105735 / 39128886 / [Res.] 24725189 |
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Fax No. : |
91-9840098886 |
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E Mail : |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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C. R. Badrinath |
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5 |
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Kin Chak Limited |
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219995 |
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Total |
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220000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of all types textile garments and clothing accessories. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Actual
Production |
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Knitted Garments and / or Knitted to Shape
Garment Panel Sets |
Dozs. |
99,619 |
GENERAL
INFORMATION
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No. of Employees : |
About 250 |
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Bankers : |
Canara Bank, Overseas Branch,
Spencer Tower II, 770 A, Mount Road, Madras – 600002 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Venkatram and Company Chartered Accountants |
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Address : |
No. 218, T. T. K. Road, Alwarpet, Chennai – 600018 |
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Tel. No.: |
91-44-24992155 / 6 / 7 / [Res.] 24986492 |
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Per. No.: |
91-44-24992602 |
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Fax No.: |
91-24670343 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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4,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 4.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
2,20,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2.200
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.200 |
2.200 |
2.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
164.714 |
190.910 |
210.543 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
166.914 |
193.110 |
212.743 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
14.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
14.000 |
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DEFERRED TAX LIABILITIES |
3.574 |
0.000 |
0.000 |
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TOTAL |
170.488 |
193.110 |
226.743 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
31.482 |
20.941 |
28.938 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
4.800 |
8.800 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
103.020
|
203.232 |
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Sundry Debtors |
0.000
|
75.806 |
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Cash & Bank Balances |
15.140
|
23.121 |
276.707 |
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Loans & Advances |
22.827
|
29.198 |
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Total
Current Assets |
140.987
|
331.357 |
276.707 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
27.068
|
138.997 |
87.702 |
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Provisions |
0.000
|
24.991 |
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Total
Current Liabilities |
27.068
|
163.988 |
87.702 |
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Net Current Assets |
113.919
|
167.369 |
189.005 |
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MISCELLANEOUS EXPENSES |
25.087 |
0.000 |
0.000 |
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TOTAL |
170.488 |
193.110 |
226.743 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
|
214.689 |
293.283 |
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Other Income |
|
37.229 |
0.353 |
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Total Income |
|
251.918 |
293.636 |
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Profit/(Loss) Before Tax |
|
[17.765] |
9.785 |
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Provision for Taxation |
|
8.374 |
4.600 |
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Profit/(Loss) After Tax |
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[26.139] |
5.185 |
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Earnings in Foreign Currency : |
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Export Earnings |
|
212.866 |
291.224 |
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Total Earnings |
|
212.866 |
291.224 |
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Imports : |
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Raw Materials |
|
141.156 |
210.042 |
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Stores & Spares |
|
8.501 |
3.694 |
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Capital Goods |
|
0.000 |
0.043 |
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Packing Materials |
|
0.535 |
0.808 |
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Total Imports |
|
150.192 |
214.587 |
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Expenditures : |
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Cost of Goods Sold |
|
239.248 |
232.690 |
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Employees Costs |
|
18.667 |
30.202 |
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Other Expenses |
|
8.114 |
11.434 |
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Interest and Finance Charges |
|
1.175 |
1.620 |
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Depreciation |
|
2.479 |
7.905 |
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Total Expenditure |
|
269.683 |
283.851 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
[10.38]
|
1.77 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
[8.27]
|
3.34 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[10.30]
|
2.78 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
[0.15]
|
0.05 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.16
|
0.85 |
0.48 |
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Current Ratio (Current Asset/Current Liability) |
|
5.21
|
2.02 |
3.15 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
Ř
Land
Ř
Building
Ř
Plant and Machinery
Ř
Computers
Ř
Electrical Installations
Ř
Furniture and Fixtures
Ř
Office Equipments
Ř
Motor Vehicles
Operating Result
The company has achieved during the year under report a turnover of Rs.
214.689 Millions resulting in a net loss after tax of Rs. 26.139 Millions.
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Contingent
Liabilities |
Rs. In Millions |
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Claims against the company not acknowledged as debts |
2.269 |
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Other financial
information |
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Outstanding bank guarantees |
3.000 |
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The company has a packing credit facility with Canara Bank for Rs. 25.000 Millions which is secured by way of hypothecation of inventories |
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Bankers Charges
Report as per Registry
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Name of the company |
WELLKNIT
APPARELS PRIVATE LIMITED |
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Presented By |
WELLKNIT
APPARELS PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Deed of
hypothecation of machinery dated 29.10.1991 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 14.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Plant and
Machinery located at premises SDF Block III, Units 21-24, MEPZ, Tambaram,
Madras – 45 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Prime security
for Term Loan of Rs. 14.000 Millions with Interest @ 14 % and repayment
schedule of Rs. 1.000 Millions per quarter 14 quarters with repayment holiday
of 3 months. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Overseas Branch,
Spencer Tower II, 770 A, Mount Road, Madras – 600002 |
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6) Date and brief description of instrument modifying the charge |
Letter dated 05.01.1993
from Canara Bank, Hypothecation of additional machinery as per
enclosure. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Except giving
additional security of plant and machinery no change in loan agreement and
other clauses. |
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Name of the company |
WELLKNIT
APPARELS PRIVATE LIMITED |
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Presented By |
Mr. C R Badrinath,
Director |
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1) Date and description of instrument creating the change |
Hypothecation
agreement for packing credit advances dated 05.04.1991 Agreement to
hypothecation of book debts dated 05.04.1991 Collateral
Security Agreement : Machinery, Vehicles dated 05.04.1991 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 10.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Raw materials,
work in process, finished goods used in manufacture of Sweaters / Panels |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest
– 7.5 %, Margin – 10 % |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Overseas Branch,
Spencer Tower II, 770 A, Mount Road, Madras – 600002 |
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6) Date and brief description of instrument modifying the charge |
Counter indemnity
dated 15.10.2001 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Increase in Bank
Guarantee Limit from Rs. 10.000 Millions to Rs. 25.000 Millions Revised total
borrowing limit Rs. 115.000 Millions Packing credit
Rs. 20.000 millions FDB/FBE Rs. 70.000 Millions Bank Guarantee
Rs. 25.000 Millions |
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. 42.87 |
|
UK Pound |
1 |
Rs. 84.79 |
|
Euro |
1 |
Rs. 57.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|