MIRA
INFORM REPORT
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Report Date : |
04.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SHARADHA TERRY PRODUCTS LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.06.1992 |
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Com. Reg. No.: |
003799 |
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CIN No.: [Company
Identification No.] |
U17115TZ1992PLC003799 |
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Legal Form : |
Subject is a closely held public limited liability
company. |
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Line of Business : |
Manufacturers and Exporters of Textile products, Denim Fabrics, Terry Towels and Bath Products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 5800000 |
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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 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/ Factory : |
P. Box No. 24, Badrakaliamman Koil Road, Nellithurai Post, Mettupalayam, Coimbatore – 641 305, India. |
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Tel. No.: |
91-4254-223450 |
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Fax No.: |
91-4254-223400 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. G. Kannappan |
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Designation : |
Chairman & Managing Director |
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Address : |
186, |
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Date of Birth/Age : |
02.07.1947 |
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Date of Appointment : |
17.08.1992 |
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Name : |
Mr. R. Pothiraj |
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Designation : |
Director |
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Address : |
43, Pioneer Nagar, Jothi
Puram Post, |
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Date of Birth/Age : |
20.02.1948 |
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Date of Appointment : |
31.01.2003 |
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Name : |
Mr. D. Vikram Krishna |
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Designation : |
Director |
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Address : |
202, Tea Estate Compound, Race Course, |
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Date of Birth/Age : |
16.06.1971 |
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Date of Appointment : |
24.03.1998 |
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Name : |
Mr. M. Nagarajan |
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Designation : |
Director |
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Address : |
Plot No. 20, Kain Nagar, |
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Date of Birth/Age : |
22.02.1946 |
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Date of Appointment : |
26.09.1994 |
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Name : |
Mr. L. G. Ramamurthy |
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Designation : |
Director |
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Address : |
“Saroram”, 185, Race Course, |
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Date of Birth/Age : |
18.12.1930 |
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Date of Appointment : |
30.09.1993 |
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Name : |
Mr. K. Gov Ramaswamy |
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Designation : |
Director |
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Address : |
193, |
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Date of Birth/Age : |
09.01.1949 |
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Date of Appointment : |
30.09.1993 |
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Name : |
Mr. G. Sarangan |
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Designation : |
Director |
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Address : |
63/2, |
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Date of Birth/Age : |
30.12.1928 |
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Date of Appointment : |
30.09.1993 |
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Name : |
Mr. G. Vijayakumar |
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Designation : |
Director |
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Address : |
194, |
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Date of Birth/Age : |
05.08.1953 |
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Date of Appointment : |
11.01.1993 |
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Name : |
Mr. R. Swaminathan |
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Designation : |
Director |
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Address : |
7, KG Gardens, |
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Date of Birth/Age : |
04.09.1947 |
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Date of Appointment : |
24.03.1997 |
KEY EXECUTIVES
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Name : |
Mr. K. Jayaraj |
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Designation : |
General Manager (Finance) & Company Secretary |
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Address : |
53/2, Mariam Velappa
Gounder, |
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Date of Birth/Age : |
05.06.1959 |
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Qualification : |
26.11.1992 |
SHAREHOLDING PATTERN
|
Category |
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Percentage of
Holding |
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Directors or relatives of directors |
|
100.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Textile products, Denim Fabrics, Terry Towels and Bath Products. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Around 310 (Office:
60; Factory: 250) |
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Bankers : |
v
Oriental Bank of Commerce, 1057 Jaya Enclave, v
Bank of v
Bank of v
State Bank of Travancore v
State Bank of v
Indian Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gopala Iyer and Subramanium Chartered Accountants |
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Address : |
Flat no. 2, Second Floor, |
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Associates/Subsidiaries : |
Associates ˜
The Kadri Mills ( ˜
GK Investments Private Limited, ˜
GV Investments Private Limited, ˜
GRV Investments Private Limited, Subsidiary v
Micro Cotton Inc., |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 180.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9780000 |
Equity Shares |
Rs. 10.00 each |
Rs. 97.800 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 (6 Months) |
30.09.2005 (12 Months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
97.800 |
121.229 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
1361.740 |
1224.384 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
1459.540 |
1345.613 |
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LOAN FUNDS |
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|
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1] Secured Loans |
|
1717.979 |
1072.101 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
1717.979 |
1072.101 |
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DEFERRED TAX LIABILITIES |
|
52.993 |
11.905 |
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TOTAL |
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3230.512 |
2429.619 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
1188.717 |
862.165 |
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Capital work-in-progress |
|
314.859 |
275.386 |
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INVESTMENT |
|
3.664 |
0.460 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
579.248 |
350.072 |
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Sundry Debtors |
|
258.141 |
207.370 |
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Cash & Bank Balances |
|
800.358 |
540.587 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
334.498 |
394.076 |
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Total
Current Assets |
|
1972.245 |
1492.105 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
157.208 |
128.663 |
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Provisions |
|
91.765 |
71.834 |
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Total
Current Liabilities |
|
248.973 |
200.497 |
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Net Current Assets |
|
1723.272 |
1291.608 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
3230.512 |
2429.619 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 (6 Months) |
30.09.2005 (12 Months) |
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Sales Turnover |
|
923.793 |
1621.582 |
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Other Income |
|
22.332 |
10.264 |
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Total Income |
|
946.125 |
1631.846 |
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CHANGE IN STOCK |
|
13.972 |
5.369 |
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Profit/(Loss) Before Tax |
|
337.955 |
689.952 |
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Provision for Taxation |
|
60.968 |
57.566 |
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Profit/(Loss) After Tax |
|
276.987 |
632.386 |
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Export Value |
|
894.641 |
1579.015 |
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Imports : |
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Capital Goods |
|
103.105 |
164.551 |
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Raw Materials |
|
41.113 |
55.039 |
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Dyes and Chemicals |
|
5.430 |
13.653 |
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Consumables Stores and Spares |
|
6.688 |
4.274 |
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Total Imports |
|
156.336 |
237.517 |
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Expenditures : |
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Total Expenses |
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539.271 |
876.107 |
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Financial Charges |
|
29.171 |
14.690 |
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Depreciation |
|
55.438 |
55.468 |
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Total Expenditure |
|
623.880 |
946.265 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 (6 Months) |
30.09.2005 (12 Months) |
|
PAT / Total Income |
(%) |
|
29.28 |
38.75 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
36.58 |
42.55 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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10.69 |
29.31 |
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.23 |
0.51 |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
1.35 |
0.95 |
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Current Ratio (Current Asset/Current Liability) |
|
|
7.92 |
7.44 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject is the flagship company of the KG Group. KG Group was founded by Mr. K. Govinda Swamy Naidu, KG is a tradition of trust since 1932. Started as a cotton trading venture, KG has emerged as one of the few highly integrated companies that are involved in every sphere of textiles.
KG is also one of the first companies in
Business
Subject is a terry towel plant with world-class technology. High standards and professional management are the bedrock of the company's corporate philosophy.
Subject started manufacturing with international technical collaboration and
has maintained a highly quality conscious clientele in the International
Market.
Terry towels of matchless luxury and elegance are woven from pure cotton yarn of the finest quality. The company’s towels excel in absorbency, softness and loftiness.
Subject offers a wide range of products such as
˜ White, plain dyed towels, yarn dyed jacquard, self jacquard towels, embellished towels
˜ Loop terry towels, shared towels (velour towels)
˜ Home bath towels, beach towels, institutional towels, hospitals, restaurants, hotels, army, bar mops, sports towels, sauna, golf, pool, etc.
˜ Face towels, bath towels, guest towels, bath sheets, hand towels, bath mats, bath curtains
˜ Other terry products : both robes, bath slippers, auto car seat covers, bed covers
˜ Children’s products : hooded towels, nappies
˜ Promotional towels, gift towels
˜ Home towels : self jacquard, yarn dyed jacquard, beach towels, institutional towels
˜ Beach towels : scenic, beach design
Subject has been accredited with ISO 9002 Certification.
FORM 8
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Name of the company |
SHARADHA TEERY
PRODUCTS LIMITED (hereinafter
referred to as “the Company”) |
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Presented By |
Mr. K. Jayaraj Company Secretary (Name and
Designation of the official of the Company) |
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1) Date and description of instrument creating the change |
18.03.2003. Deed
of Hypothecation executed by the company in favour of State Bank of
Travancore (Hereinafter referred to as “the Bank”). |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan
facilities of Rs. 20.000 millions together with interest thereon. |
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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 |
The whole immovable
properties of the company including its movable plant and machinery,
machinery spares, tools and accessories and other movables, both present and
future pertaining to its factory at Mettupalayam in the State of Tamilnadu,
whether installed or not and whether now lying loose or in cases or which are
not lying or stored in or about or shall hereafter from time to time during
the continuance of the security of these presents be brought into or upon or
be stored be in or about all the company’s factories, premises and godowns or
wherever else the same may be or be held by any party to the order or
disposition of the Company or in the course of transit or on high seas or on
order or delivery howsoever and wheresoever in the possession of the Company
and either by way of substitution or addition (save and except the current
assets and book debts). (Hereafter collectively referred to as “the
hypothecated goods”) |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge operates
as a security for the due repayment of Term Loan of Rs. 20.000 millions to
the Bank together with interest thereon at the rate of 1.25% per annum above
SBTPTLR with minimum of 13.50% per annum or at such rate or rates as may be
from time to time notified by the Bank on terms of the said Deed of
Hypothecation. |
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5) Name and Address and description of the person entitled to the charge. |
Head Office: State Bank of
Travancore Poojappura, Branch Office: State Bank of
Travancore Pappanaickenpalayam
Branch, |
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6) Date and brief description of instrument modifying the charge |
31.05.2005. No
instrument was executed. The Creation of equitable mortgage by deposit of additional
title deeds in respect of immovable properties of the Company situated at
Thekkampati Village, Mettupalayam Taluka, Coimbatore District in the State of
Tamilnadu more particularly situated in the Schedule II of the Letter
evidencing the creation of equitable mortgage and also the Extension of
Equitable Mortgage by constructive delivery was created in respect of the
immovable properties of the company situated at Thekkampati Village,
Mettupalayam Taluka, Coimbatore District in the State of Tamilnadu more
particularly situated in the Schedule II of the Letter evidencing the
Extension of equitable mortgage in favour of Bank of India (BOI), Bank of
Baroda(BOB) State Bank of Travancore (SBT), Indian Bank (IB), State Bank of
Patiala (SBP), and Oriental Bank of Commerce (OBC) by deposit of title deeds
with BOI, BOI acting for itself and as representative of BOB, SBT, IB, SBP
and OBC as security, inter-alia, for the due repayment and discharge by the
company to facilities amounting to Rs. 484.000 millions together with
interest payable by the company to SBT. |
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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. |
The charge
operates as security for the due repayment of Term Loan and working capital
facilities sanctioned by SBT, on pari-passu first charge in respect of term
loan facilities aggregating to Rs. 270.000 millions with BOI, BOB, IB, SBP
and OBC and on pari-passu second charge in respect of working capital
facilities aggregating Rs. 194.000 millions with BOI, BOB, IB and OBC. |
|
Corporate
identity number (CIN) Foreign company registration number |
U17115TZ1992PLC003799 |
|
Name of the
Company |
SHARADHA TERRY PRODUCTS
LIMITED |
|
Address |
8, |
|
This form is for |
Creation of
Charge |
|
Type of Charge |
A Charge on v
Immovable
Property v
Movable
Property |
|
Particulars of the
charge holder |
Oriental Bank of
Commerce 1057, Jaya
Enclave, E-Mail: bm1044@obc.co.in |
|
Amount secured by
the charge |
Rs. 500.000
millions |
|
Nature or description
of the instrument(s) creating or modifying the charge |
Agreement of Term
Loan |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a)Rate of
Interest 2.00% below PLR
i.e. 11.25% (b) Terms of repayment Rs. 15.625
millions per quarter for 32 quarterly installments starting from 31.07.2009 (c) Margin:
17.43% (d) Extent and
operation of the charge Charge operates
as a security for the due repayment of Term Loan Facility of Rs. 500.000
millions to Bank together with interest thereon at the rate specified by the
Bank from time to time on the Terms and condition mentioned in the Agreement
of Term Loan. |
|
Short particulars
of the property charged |
First charge on
pari-passu basis among the lenders for the project by way of Equitable
Mortgage of Land and Building and Hypothecation of all the Fixed Assets of
the Company including the existing unit and the proposed project, both
present and future. |
|
Date of
Instrument |
19.04.2007 |
Website details attached:
Incorporated in Jun.'92, subject was promoted by K G Naidu,
G Kannappan and Kadri Mills. G Kannapan is the chairman and managing director
of subject.
The company has set up a 100% EOU to manufacture terry
towels with an installed capacity of 1430 TPA at Thekampati, Tamilnadu. Subject
went public in Mar.'94 to part-finance the terry towel project. The towels are
woven in air-jet weaving machines fitted with electronically controlled
jacquards. Major machineries imported from
Subject has entered into a technical, design and marketing
co-operation agreement with
Company
Profile
Subject
is a terry towel plant with world-class technology. High standards and
professional management are the bedrock of the company's corporate philosophy.
Subject
started manufacturing with international technical collaboration and has
maintained a highly quality conscious clientele in the International Market.
Terry towels of matchless luxury and elegance are woven from pure cotton yarn of the finest quality. Sharadha towels excel in absorbency, softness and loftiness.
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. 40.36 |
|
|
1 |
Rs. 82.18 |
|
Euro |
1 |
Rs. 55.31 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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 |
|