MIRA
INFORM REPORT
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Report Date : |
17.07.2007 |
IDENTIFICATION DETAILS
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Name : |
MADURA COATS PRIVATE LIMITED |
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Formerly Known As : |
COATES VIYELLA INDIA LIMITED |
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Registered Office : |
New |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
31.07.1974 |
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Com. Reg. No.: |
18-006677 |
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CIN No.: [Company
Identification No.] |
U18102TN1974PTC006677 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers and Exporters of Cotton, Synthetic and
Corespun Threads |
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 4500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject
is an old established company having satisfactory track records. Directors
are experienced, respectable and highly qualified professionals. Their trade relations
are fair. General financial position is satisfactory. Payments
are usually correct and as per commitments. Your
proposed business dealings of US $ 128000 can be considered against D/A or
D/P terms. It can be suggested for
maximum credit of US $ 300000 against
D/A or D/P terms. |
LOCATIONS
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Registered Office : |
New |
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Tel. No.: |
91-452-2602751 |
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Fax No.: |
91-452-2603130 / 2602739 |
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E-Mail: |
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Website : |
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Corporate Office
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H-85, Post Box No. 1600, Old Madras Road, Bangalore – 560016,
Karnataka, India |
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Tel. No.: |
91-80-28510911 / 28510912 / 28532674 |
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Fax No.: |
91-80-28518046 / 28518156 |
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Group
head office : |
144, |
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Tel. No.: |
91-80-2558 4121 |
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Fax No.: |
91-80-2558 4229 / 559 4598 |
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Factory : |
Ø
New Tel. No. :
91-452-602751 Fax No. : 91-452-603130
/ 602739 Ø
Coats Ø
Centenary Mill, no. 8, New ambasamudram
Ø
Water Mill, Papavinasam Mills,
Ambasamudram - 627 422, Tamilnadu Ø
Madura Textiles, Papavinasam Mills,
Ambasamudram - 627 422, Tamilnadu Ø
Export
Oriented Unit : 10-A, Ø
Interlining
Manufacturing facility : Mela-Ambasamudram, Tirunelveli
- 627 401, Tamilnadu tuticorin
Ø
83 & 88, panoli
Ø
21/222, GIDC Industrial Estate,
Ankleshwar, Panoli - 394 116, District Bharuch, serampore
Serampore (Hooghly), |
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Sales Offices : |
q
216, q
q
·
46-D, q
Sanghavi Sadan, Off. q
203, Samudra Gaurav (II Floor), 6-A,
Worli Sea Face, Abdul Gaffarkhan Road, Worli, Mumbai – 400 025 q
Green View, 3rd Floor, P.
B. No.2725, 3rd Floor, 19, Circus Avenue, Kolkata – 700 017, West
Bengal, India q
19-A, q
No. 2, Gurucharan Roychowdhury, q
B-II/35, Mohan Co-operative
Industrial Estate, q
E-1, q
A8-Sectro 6, Gautam Budh Nagar, Noida
– 201 301, q
q
q
GF 32/33, Meghdoot, q
10, Karthapura, 22, Godown Industrial
Area, Jaipur – 301 206, q
13/6-7, Civil Lines, P. B. No, 112,
Pormat, q
Guru Govind Singh Nagar, Sisbro
Complex, Sherpur Chowk (Hero Chowk), Behind Saini Motors, G T Road, q
37A, q
Plot No. 19, S. No. 206/3, P. B. No. 8, Viman Nagar, Nagar Road,
Pune – 41 014, Maharashtra, India q
No. 66/67, q
MBN Reddy Estate, Survey No. 133,
Plassy Lane Bowenpally, Secunderabad - 500 011, Andhra Pradesh |
DIRECTORS
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Name : |
Mr. M. C. Flower |
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Designation : |
Chairman |
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Name : |
Mr. Joseph Stephen Remedios |
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Designation : |
Managing Director |
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Address : |
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Qualification : |
B.Com. (Hons)., PGDBM |
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Date of Birth : |
26.12.1951 |
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Date of Appointment : |
29.03.1995 |
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Name : |
Mr. Anil Lasanthanaomal Dias |
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Designation : |
Whole Time director |
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Address : |
27/1, MEG Officers Colony, |
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Date of Birth : |
29.12.1958 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. Roger Bevan |
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Designation : |
Whole Time Director |
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Address : |
The Shires, 20 Wood bank Loosely Row, Buckingham Shire, |
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Date of Birth : |
06.04.1959 |
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Date of Appointment : |
01.07.1998 |
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Name : |
Mr. Mike James Smithyman |
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Designation : |
Director |
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Address : |
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Date of Birth : |
17.11.1945 |
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Date of Appointment : |
23.11.2004 |
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Name : |
Mr. M. Subramanian |
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Designation : |
Whole Time Director |
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Name : |
Mr. J. D. Lea |
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Designation : |
Director |
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Name : |
Mr. B. G. Anderson |
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Designation : |
Director |
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Name : |
Dr. M. S. M. Ramaswamy |
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Designation : |
Director |
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Name : |
Mr. S. N. Talwar |
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Designation : |
Director |
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Name : |
Mr. P. K. Kurian |
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Designation : |
Director |
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Name : |
Mr. N. Ramamurthi |
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Designation : |
Director (Representing LIC of |
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Name : |
Mr. Y. D. Patil |
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Designation : |
Director (Nominee of GIC and its Subsidiaries) |
KEY EXECUTIVES
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Name : |
Mr. Arup Chandra Borua |
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Designation : |
Secretary |
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Address : |
B-304 Raja Praikruthi, 4th Cross, Siddapura, Jaya Nagar,
I-Block, |
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Date of Birth : |
04.03.1967 |
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Date of Appointment : |
12.04.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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J P Coats Limited |
8800000 |
99.999 |
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Tootal Thread Limited |
100 |
0.001 |
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Total |
8800100 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Cotton, Synthetic and Corespun
Threads |
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Products : |
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Exports : |
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Countries : |
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PRODUCTION STATUS
31st
December, 2006
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Particulars |
Unit |
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Actual
Production |
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Yarn |
‘000
Kgs |
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2896 |
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Cotton hank and handicraft thread |
‘000
Kgs |
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444 |
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Cotton and synthetic thread |
Million
Mts. |
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425679 |
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Inerling |
‘000
Mts. |
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11554 |
GENERAL INFORMATION
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No. of Employees : |
Around 3142 |
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Bankers : |
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Hong Kong & Shanghai Banking Corporation,
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte, Haskins & Sells Chartered Accountants |
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Address : |
Deloittee Centre, |
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Tel No. : |
91-80-66276000 |
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Fax No. : |
91-80-66276011 |
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Parent Company : |
Coats Viyella Plc. |
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Holding Company : |
J P Coats |
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Joint Venture : |
S & P Threads Private Limited |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100,000,000 |
Equity Shares |
Rs.
10/- each |
Rs.
1000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8,800,100 |
Equity Shares |
Rs.
10/- each |
Rs.
88.001 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.12.2006 |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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88.001 |
314.422 |
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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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1040.538 |
1796.112 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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1128.539 |
2110.534 |
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LOAN FUNDS |
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1] Secured Loans |
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12.475 |
2.420 |
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2] Unsecured Loans |
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8.775 |
9.580 |
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TOTAL BORROWING |
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21.250 |
12.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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1149.789 |
2122.534 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1351.312 |
1111.638 |
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Capital work-in-progress |
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195.568 |
83.408 |
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INVESTMENT |
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583.923 |
296.211 |
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DEFERREX TAX ASSETS |
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4.000 |
7.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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1304.837 |
942.313 |
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Sundry Debtors |
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1302.281 |
1193.543 |
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Cash & Bank Balances |
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239.279 |
232.437 |
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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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542.760 |
583.886 |
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Total
Current Assets |
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3389.157 |
2952.179 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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4204.495 |
2203.892 |
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Provisions |
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169.676 |
124.010 |
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Total
Current Liabilities |
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4374.171 |
2327.902 |
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Net Current Assets |
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[985.014] |
624.277 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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1149.789 |
2122.534 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.12.2006 |
31.12.2005 |
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Sales Turnover |
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8240.800 |
7247.500 |
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Earnings in Foreign Currency : |
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Export Earnings |
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2104.434 |
1662.046 |
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Other Earnings (and
commission) |
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0.000 |
2.662 |
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Total Earnings |
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2104.434 |
1664.708 |
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Imports : |
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Raw Materials |
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923.142 |
990.806 |
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Stores & Spares |
|
18.578 |
10.753 |
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Capital Goods |
|
260.445 |
157.605 |
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Others |
|
151.256 |
55.525 |
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Total Imports |
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1353.421 |
1214.689 |
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KEY RATIOS
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PARTICULARS |
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31.12.2006 |
31.12.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.89 |
1.11 |
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Current Ratio (Current Asset/Current Liability) |
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0.77 |
1.27 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated on July 31, 1974 the subject is engaged in the
business of Manufacturer and exporter of Cotton Yarn, Cotton Fabrics, Cotton made-ups
and Sewing Threads. The subject operates through its two division – Coats India
and Global Thread Supply India.
Coats
Capital Re-structuring Scheme : During the year 2005-06 the
subject company had proposed and the Directors in the meeting of the Board of
Directors held on June 30, 2006 approved a composite capital restructuring
scheme involving [a] amalgamation of one of its subsidiary company viz. Madura
Agro Industries Limited the subject company and [b] reduction of the subject
company’s paid-up share capital to 8800100 Equity Shares of Rs. 10/- each upon
cancellation of 16087111 Equity Shares of Rs. 10/- each fully paid up effective
July 1, 2006. Upon conformation of these proposal by the Hon’ble Madras High
Court and upon completion of necessary statutory formalities, the approved
scheme has since been implemented.
Quality Assessment : ISO 9002 Certified Company
Coats Viyella India (CVIL) got its present name with effect
from
CVIL came out with a rights issue aggregating Rs. 240.70
millions, in July 1994, to part finance the modernisation and upgradation of
existing production facilities, the expansion of production capacities by
installing additional machinery, etc, at a project cost of Rs. 314.60 millions.
CVIL is in the area of textile which includes the conversion
of natural and synthetic fibres into year and threads, and the designing of
fabrics its major products are yarn, threads, consumer fabrics and industrial
textiles its garments division markets famous brands such as Allen Solly, Louis
Philippe and Van Heusen. These brands have carved a niche for themselves in the
premium category.
The company changed its name back to Madura Coats Limited
from Coats Viyella India Limited in June’98 following the proposed demerger of
Coats Viyella Plc. The name “Madura
Coats” has earned considerable trade, industry, employee and shareholder
goodwill over the years and enjoys strong brand equity in the company’s
garments, fabric and industrial textile business among customers in
In June 1998, the company changed its name back to Madura
Coats from Coats Viyella
The company has sold its Madura Garments Division to Indian
Rayon Industries Limited for Rs. 1892.30 millions as an ongoing business.
Coats
Its' core strengths of branding, distribution and a less
concentrated manufacturing / sourcing based facilitated a positive recovery.
Ø
Local market sales at Rs. 4110 millions
were 12% up on 1999
Ø
Export sales at Rs. 850 millions were twice
1999 levels, supported largely by increased off take of grey thread by Coats
Viyella units worldwide.
The
company’s fixed assets of important value include land (freehold and
leasehold), buildings, railway sidings, machinery, furniture and fittings and
vehicles.
Press
clippings
Madura
Coats offer gets FIPB approval
MUMBAI, Sept. 24
THE Foreign Investment Promotion
Board has approved the open offer of J&P Coats Ltd and Coats plc to acquire
36.8 per cent share capital of Madura Coats Ltd for Rs 40 per share.
The open offer will open on
September 25 and close on October 24, a news release said. The offer price of
Rs 40 per share is based on a 33-month high price since the announcement.
DSP Merrill Lynch Ltd, advisors to the offer, had earlier
informed the BSE that J&P Coats along with Coats plc would make an open
offer to buy 21,669,392 fully paid equity shares of Rs 10 each at Rs 40 per
share.
JPC holds 37,188,070 equity shares or 63.2 per cent in MCL.
MCL had conducted an open offer under SEBI (Buyback of Securities) Regulations,
1998 in October 2001. The offer which was made through the tender offer route
at Rs 27 per share led to an increase in JPC's shareholding in Madura Coats to
63.2 per cent from 51.5 per cent.
According to the DSP announcement
if the September 2002 offer leads to a fall in public shareholding to 10 per
cent or below of MCL's voting capital, JPC will make a second offer to buy out
the remaining outstanding shares held by the public.
The second offer will be made within
three months from closure of the offer at the same offer price.
The second offer is to remain
open for six months.
On achieving 90 per cent stake
in Madura Coats through this open offer, the shares of MCL will be delisted
from the stock exchanges, the release said.
Subject was born in 1974 as a result of
the merger of Madura Mills, J & P Coats and A & F Harvey -
organisations which had been in existence for 20 to 90 years. The company has
the unique distinction of being the only professionally managed multinational
company in the textile industry.
MCL introduced the Management Trainee Scheme as early as
the 60's . In the 70's, the company came to be known for embracing modern management
concepts such as Management by Objectives and Performance Appraisal Systems.
During the 80's, the company adopted the profit centre structure to facilitate
focus and organic growth . The 90's were characterised by diversification into
the ready made garments business and expansion of the thread business in
MCL operates through its two divisions - Coats India and
Global Thread Supply India.
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.41.09 |
|
|
1 |
Rs.81.46 |
|
Euro |
1 |
Rs.55.16 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
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