MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
CARDWELL SPINNING MILL LIMITED |
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Registered Office : |
Puduppalayam, N. G. G. O. Colony Post, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.01.1963 |
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Com. Reg. No.: |
181-000476 |
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CIN No.: [Company
Identification No.] |
U17111TZ1963PLC000476 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBC03050F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Spinning of cotton fiber including blended cotton. |
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 60000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. 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 : |
Puduppalayam, N. G. G. O. Colony Post, |
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Tel. No.: |
91-422-2460247 / 2210757 / 2460280 / 3850247 |
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Fax No.: |
91-422-2460280 / 2222338 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. R. Narayanaswamy |
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Designation : |
Managing Director |
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Address : |
“Bhashini’s” 17A, Race Course, |
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Date of Birth/Age : |
10.12.1917 |
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Date of Appointment : |
26.03.1967 |
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Date of Ceasing : |
14.06.2003 |
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Name : |
Mr. Saraswathi Narayanswamy Varadarajan |
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Designation : |
Director |
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Address : |
SF No. 98/3, Govndaswamy Naidu, Layout, Near Iyer Hospital, Coimbatore
– 641045, Tamilnadu, India |
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Date of Birth/Age : |
29.05.1955 |
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Date of Appointment : |
01.06.1990 |
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Name : |
Mr. Vardarajan Shyamala |
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Designation : |
Director |
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Address : |
SF No. 98/3, Govndaswamy Naidu, Layout, Near Iyer Hospital, Coimbatore
– 641045, Tamilnadu, India |
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Date of Birth/Age : |
10.04.1969 |
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Date of Appointment : |
06.10.1999 |
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Name : |
Mr. B. S. Hamsavalli |
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Designation : |
Director |
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Address : |
“Bhashini’s” 17A, Race Course, |
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Date of Birth/Age : |
24.09.1951 |
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Date of Appointment : |
12.01.2000 |
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Name : |
Mr. Krishnan Janaki |
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Designation : |
Director |
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Address : |
53, 1st Main Road, Meena Estate, |
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Date of Birth/Age : |
09.05.1945 |
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Date of Appointment : |
12.01.2000 |
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Name : |
Mr. K. R. Kandavlu |
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Designation : |
Director |
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Address : |
13-A, Dhamodarasamy Nagar, Sowripalayam, |
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Date of Birth/Age : |
01.11.1944 |
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Date of Appointment : |
15.03.2000 |
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Date of Ceasing : |
31.03.2004 |
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Name : |
Mr. B. Ravichandran |
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Designation : |
Director |
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Address : |
Manager Quarters, 2/147 A, Rajan Arayan Textile Limited, Sundarapram, |
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Date of Birth/Age : |
02.03.1964 |
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Date of Appointment : |
16.06.2003 |
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Name : |
Mr. N. K. Bharani |
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Designation : |
Director |
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Address : |
53, 1st Main Road, Meena Estate, |
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Date of Birth/Age : |
27.03.1974 |
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Date of Appointment : |
16.06.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Directors of relatives of directors |
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94.00 |
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Others |
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6.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Spinning of cotton fiber including blended cotton. |
GENERAL INFORMATION
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Bankers : |
Karnataka Bank Limited RS Puram Branch, Centurion Bank of
Punjab Limited 723, |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
C Chartered Accountants |
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Address : |
Kalpavrukshaa, Flat No. 3, Ground Floor, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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100,000 |
Equity Shares |
Rs. 100/- each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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100,000 |
Equity Shares |
Rs. 100/- each |
Rs. 10.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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10.000 |
10.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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5.073 |
2.936 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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15.073 |
12.936 |
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LOAN FUNDS |
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1] Secured Loans |
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19.031 |
19.096 |
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2] Unsecured Loans |
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4.656 |
3.711 |
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TOTAL BORROWING |
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23.687 |
22.807 |
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DEFERRED TAX LIABILITIES |
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0.103 |
0.710 |
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TOTAL |
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38.863 |
36.453 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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10.760 |
9.970 |
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Capital work-in-progress |
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0.518 |
0.518 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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24.717 |
17.357 |
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Sundry Debtors |
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10.092 |
6.343 |
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Cash & Bank Balances |
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4.711 |
4.347 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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6.339 |
7.577 |
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Total
Current Assets |
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45.859 |
35.624 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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16.414 |
8.559 |
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Provisions |
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1.860 |
1.100 |
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Total
Current Liabilities |
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18.274 |
9.659 |
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Net Current Assets |
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27.585 |
25.965 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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38.863 |
36.453 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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103.663 |
112.215 |
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Other Income |
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0.307 |
0.397 |
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Total Income |
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103.970 |
112.612 |
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Profit/(Loss) Before Tax |
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2.973 |
1.178 |
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Provision for Taxation |
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0.702 |
0.515 |
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Profit/(Loss) After Tax |
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2.271 |
0.663 |
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Expenditures : |
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Raw Material Consumed |
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53.310 |
62.461 |
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Consumption of stores and spares parts |
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2.961 |
2.512 |
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Increase/(Decrease) in Finished Goods |
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[6.236] |
[8.713] |
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Salaries, Wages, Bonus, etc. |
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13.110 |
14.863 |
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Managerial Remuneration |
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0.180 |
0.180 |
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Payment to Auditors |
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0.020 |
0.020 |
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Interest |
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2.750 |
2.641 |
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Insurance Expenses |
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0.164 |
0.161 |
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Power & Fuel |
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17.796 |
17.200 |
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Depreciation & Amortization |
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1.602 |
1.516 |
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Other Expenditure |
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15.340 |
18.593 |
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Total Expenditure |
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100.997 |
111.434 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.18 |
0.59 |
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Net Profit Margin (PBT/Sales) |
(%) |
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2.87 |
1.05 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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5.25 |
2.58 |
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Return on Investment (ROI) (PBT/Networth) |
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0.15 |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.78 |
2.51 |
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Current Ratio (Current Asset/Current Liability) |
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2.50 |
3.69 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
CARDWELL
SPINNING MILL LIMITED |
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Presented By |
Mr. S. N.
Varadarajan, Managing Director |
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1) Date and description of instrument creating the change |
21.12.2004 Memorandum of
deposit of title deeds |
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2) Amount secured by the charge/amount owing on the securities of charge |
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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 |
Description
Property Coimbatore
Registration District, perianaichenpalayam sub Registration District, Coimbatore
North Taluk, in No. 2, Gudalur Village, SF Nos. 151/1-A, 1-B, 153-2, Part,
153/1-C, Punja Acres 5.25. in this a portion of lands parceled into house
sites after approval from Coimbatore Senior Deputy director of Town Planning
under proceedings or of Town Planning under proceedings or of Town Planning
under proceedings LP/R [CPN] No.
10/1998. in layout plan Boundaries : West and North of
Land comprised in SF No. 371. East of South of Within the above North South
1113.5 ft. in the east North South 30
ft. in the North East West 43 ft.
in the South Adm. 4572 sq. ft.
or 10 % And 216 sq. ft.
of site. Coimbatore
Registration District, Perianaickenpalayam sub Registration District,
Coimbatore North Taluk in Boundaries : On the North by a
small private land and land in S F No. 151 On the South by
Agricultural land in S F No. 371/1 part On the East by
Mettupalayam Road on the West by Agricultural Lands in S F No. 151 within the
above Land adm. 77536.78 sq. ft. or 178 % together with all buildings,
constructions and super structure thereon including factory building, office
buildings, servants room, rest room well with pumpset, water tank, barbed
wire with pumpset, water tank, barbed wire fencing, compound wall, HT
Electric service connection etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin : Factoring 20 % The charge
operates as continuing collateral security for advanced made to be made by the
SBI factors and commercial services private limited to S M S Cotton Traders
and S M Subramania Pillai by way of factoring otherwise and to secure payment
to the SBI factors on demand of all the indebtness an liabilities whatsoever.
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5) Name and Address and description of the person entitled to the charge. |
SBI Factors and |
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6) Date and brief description of instrument modifying the charge |
-- |
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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. |
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Corporate
identity number of the company |
U17111TZ1963PLC000476 |
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Name of the
company |
CARDWELL SPINNING MILL LIMITED |
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Address of the
registered office or of the principal place of business in |
Puduppalayam, N. G. G. O. Colony Post, |
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This form is for |
Creation of charge |
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Type of charge |
Hypothecation
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Particular of
charge holder |
Centurion Bank of
Punjab Limited 723, |
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Nature of instrument
creating charge |
Loan cum
hypothecation agreement |
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Date of
instrument Creating the charge |
29.03.2006 |
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Amount secured by
the charge |
Rs. 0.560
Millions |
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Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest
8 % Loan Rs. 0.560
Million Tenure 36 months Margin 20.11 |
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Date of
instrument creating or evidencing the charge |
29.03.2006 |
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Description of the
property charged indicating whether it is a charged on |
Vehicles |
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Particulars of
the property charged |
Eicher Skylinebus
– INO |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.40.43 |
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|
1 |
Rs.82.11 |
|
Euro |
1 |
Rs.55.26 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--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 |
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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 |
|