MIRA INFORM REPORT

 

 

Report Date :

24.04.2007

 

IDENTIFICATION DETAILS

 

Name :

SEL JEGAT MODERN FOILS EMBOSSERS

 

 

Registered Office :

174- A Mundaga Nadar Street, Sivakasi – 626123, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

1977

 

 

Com. Reg. No.:

42/1977

 

 

IEC No.

2888003716

 

 

Legal Form :

Partnership concern with an unlimited liability of the partners.

 

 

Line of Business :

Manufacturers, Printers and Importers of Printers of all kinds of labels, Specializing in Multicolor Printing of Wet Glue Labels and Tags with Hot Foil Stamping Wine and Liquor, Textiles and Cosmetic Industries with Heidelberg CPC 4 Color Printing Machine.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 82000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed concern having fine track. Partners are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are correct and as per commitments. 

 

The concern can be considered good for normal business dealings at usual trade terms and conditions.   

 

 

LOCATIONS

 

Registered Office :

174- A Mundaga Nadar Street, Sivakasi – 626123, Tamilnadu, India

Tel. No.:

91-4652-22275808/ 221533

Mobile No.:

91-9894040438

Fax No.:

91-4652-2227363/ 222896

E-Mail :

seljegat@sify.com

Area :

900 Sq. fts.

Location :

Owned

 

 

Factory 1 :

3/1999, 3/2001, Thimthanagar Road, Shengmala, Sivaleach

Tel. No.:

91-4562-221535/227808

Fax No.:

91-4562-222896

Area :

15000 Sq.fts.

Location :

Owned

 

 

Factory 2 :

3/245, 245A, 245B, 249, Thiruthangal, S N Puram, Sivakasi-626130, Tamilnadu, India

Area :

15000 Sq.fts.

Location :

Owned

 

 

PARTNERS

 

Name :

Mr. V. S. Reveendran

Designation :

Partner

Address :

83A/2, Railway Road, Sivalcah

Date of Birth/Age :

55 Years

Qualification :

M. Tech

Experience :

27 Years

 

 

Name :

Mr. S. Jagetheesan

Designation :

Partner

Address :

83A/2, Railway Road, Sivalcah

Date of Birth/Age :

57 Years

Qualification :

B. Sc

Experience :

27 Years

 

 

Name :

Mrs. Jaganathan

Designation :

Partner

Address :

83A/2, Railway Road, Sivalcah

Date of Birth/Age :

50 Years

Qualification :

B. Com

Experience :

25 Years

 

 

Name :

Mr. R Prashanth

Designation :

Partner

Address :

83A/2, Railway Road, Sivalcah

Date of Birth/Age :

21 Years

Qualification :

B. E

Experience :

1 Years

 

 

Name :

Mr. R Vanaja

Designation :

Partner

 

 

Name :

Ms. J Nalini

Designation :

Partner

 

 

Name :

Mr. R Mukundan

Designation :

Partner

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers, Printers and Importers of Printers of all kinds of labels, Specializing in Multicolor Printing of Wet Glue Labels and Tags with Hot Foil Stamping Wine and Liquor, Textiles and Cosmetic Industries with Heidelberg CPC 4 Color Printing Machine.

 

 

 

 

Imports from :

Austria, Italy, Germany, Spain, Japan, Netherlands, Finland, USA, Canada

 

 

Terms :

 

Selling :

Credit (90 days)

 

 

Purchasing :

Credit (90 days)

 

PRODUCTION STATUS

 

Particulars

 

 

Installed Capacity

Actual Production

Offset Printed Labels

 

 

31200000

751

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

62

 

 

Bankers :

State Bank of India, Main Branch, Sivakasi – 626123

 

 

Facilities :

Secured Loans (As on 31.03.2006) :

 

(Rs. In millions)

State Bank of India, Sivakasi

 

Cash Credit

7.890

Term Loan

12.348

New Term Loan

0.927

IFST Loan

0.026

Total

21.191

 

Unsecured Loans :

 

Deposit by relatives

5.033

Allied concerns

0.432

Total

5.465

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

K. S. Anantharajan

Chartered Accountants

Address:

7, Main Hussain Shreet, Sivalathi

Tel. No.:

91-4562-220709

 

 

Associates/Subsidiaries :

Sel Jegat Printers Private Limited,

1, South Can Street, Sivakasi

Line of Business – Mainly engaged in the Printing of Multi Colour self adhesive labels with Hot Foil Stamping in fully Automatic Imported Machines like Pharmaceuticals Products (Prescription, over the counter), Personal care products, Toiletries and Cosmetics, House Hold Products (the Sink household products), Security Labels, Wine and Liquor Labels, Food and Electrical Industries. The entire printing is done in process.

 

Sel Jegat Serigraphics Technik

3, South Can Street, Sivakasi,

Line of Business – Manufacturing of Paper Laminated aluminium Foil Labels for Fire Works and Cloth Labels.

 

Sel Jegat Print Pack Private Limited

Manufacturing of Sel Adhesive Labels for Textile Garment Industry, Office supplies and EDP Labels.

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs. 20.617 Millions

Borrowed :

-

Total :

Rs. 20.617 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

20.617

18.670

16.319

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.001

0.000

0.476

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

20.618

18.670

16.795

LOAN FUNDS

 

 

 

1] Secured Loans

21.191

21.558

27.466

2] Unsecured Loans

5.464

3.370

2.954
TOTAL BORROWING

26.655

24.928

30.420

DEFERRED TAX LIABILITIES

0.000

0.000

0.000
 

 

 

 
TOTAL

47.273

43.598

47.215
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

29.618

29.710

31.457
Capital work-in-progress

0.000

0.000

0.000
 

 

 

 
INVESTMENT

0.000

0.000

0.000
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
7.813
7.276

6.633
 
Sundry Debtors
0.000
6.260

6.755
 
Cash & Bank Balances
0.434
0.064

0.106
 
Other Current Assets
9.839
0.000

0.000
 
Loans & Advances
0.972
1.222

3.142
Total Current Assets
19.058
14.822

16.636
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
1.403
0.934

0.878
 
Provisions
0.000
0.000

0.000
Total Current Liabilities
1.403
0.934

0.878
Net Current Assets
17.655
13.888

15.758
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

47.273

43.598

47.215

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Total Income

60.647

44.970

35.250

 

 

 

 

Profit/(Loss) Before Tax

2.251

1.989

2.832

Provision for Taxation

0.000

0.000

0.629

Profit/(Loss) After Tax

2.251

1.989

2.203

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

 

 

 

 

Manufacturing Expenses

2.016

1.834

 

Administrative Expenses

7.263

5.609

 

 

Salaries, Wages, Bonus, etc.

1.506

1.615

 

 

Interest

3.366

3.166

26.119

 

Power & Fuel

0.856

0.622

 

 

Other Expenditure

2.071

1.731

 

Total Expenditure

17.078

14.577

26.119

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004
PAT / Total Income
(%)
3.71
4.42

6.24
 
 
 
 

 
Net Profit Margin

(PBT/Sales)

(%)
3.71
4.42

8.03
 

 
 
 

 
Return on Total Assets

(PBT/Total Assets}

(%)
4.62
4.47

5.88
 

 
 
 

 
Return on Investment (ROI)

(PBT/Networth)

 
0.11
0.11

0.16
 

 
 
 

 
Debt Equity Ratio

(Total Liability/Networth)

 
1.36
1.38

1.86
 

 
 
 

 
Current Ratio

(Current Asset/Current Liability)

 
13.58
15.87

18.94

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trade References:

 

Prasad Accumum Private Limited, Hyderabad (Mr. Havri Dannison)

Avory Dennisom India Limited, Gurgaon

Reelatac Filand/ Malaysia

 

Company’s fixed assets include Land, Buildings, Machinery, Computer, Typewriter, Plot from scale, Electrification, Air conditioner, Furniture, Inter com and 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.40.78

UK Pound

1

Rs.81.79

Euro

1

Rs.55.66

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

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

 

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