MIRA
INFORM REPORT
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Report Date : |
20.08.2007 |
IDENTIFICATION DETAILS
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Name : |
INDIAN TIMBER PRODUCTS PRIVATE LIMITED |
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Registered Office : |
604, Swarnajayanthi Complex, Ameerpet, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.10.1986 |
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Com. Reg. No.: |
01-6888 |
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CIN No.: [Company
Identification No.] |
U20230AP1986PTC006888 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDI00949E |
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PAN No.: [Permanent
Account No.] |
AAAC1614OC |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of ISI marked ITP Flush Doors, Paneldoors, Plywood, LVI,
Black Boards, Form Works, and Pallets. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 6000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under severe pressure. It has some accumulated
losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions with slight caution initially. |
LOCATIONS
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Registered Office : |
604, Swarnajayanthi Complex, Ameerpet, |
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Tel. No.: |
91-40-23757768, 23757527 |
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Fax No.: |
91-40-23757527 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Srinivas Sunkara |
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Designation : |
Managing Director |
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Address : |
Flat No. 202, Padmaja Courts, 2 |
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Mobile No.: |
91-9849019044 |
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Date of Birth/Age : |
30.07.1964 |
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Date of Appointment : |
01.04.1999 |
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Name : |
Mr. Sivaramakrishna Sunkara |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
07.11.1937 |
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Date of Appointment : |
01.04.1999 |
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Name : |
Mr. Anil Kumar Sinkara |
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Designation : |
Director |
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Address : |
Flat No. 302, Padmaja Paradise, |
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Date of Birth/Age : |
02.06.1966 |
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Date of Appointment : |
30.09.1995 |
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Name : |
Mr. Raj Kumar Sunkara |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
08.09.1967 |
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Date of Appointment : |
01.04.1999 |
KEY EXECUTIVES
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Name : |
Narender and Associates |
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Designation : |
Company Secretary |
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Address : |
403, 3rd Floor, Naina Residency, Srinivasa Nagar (East),
Ameerpet, |
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Tel. No.: |
91-40-65639520 |
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E-Mail: |
SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of ISI marked ITP Flush Doors, Paneldoors, Plywood, LVI,
Black Boards, Form Works, and Pallets. |
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Products : |
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PRODUCTION STATUS - As on
31.03.2005
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Products |
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Unit |
Actual
Production |
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Frames, Shutters, Pallets and Core Plugs |
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Nos. |
37110 |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
20 |
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Bankers : |
Andhra Bank Balanagar Branch, E-Mail: bmhyd057@andhrabank.co.in
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G. P. Associates Chartered Accountants |
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Address : |
Flat No. 603, 6th floor, Cyberheights, Plot No. 13, Huda Lay-out,
Road No. 2, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000 |
Equity Shares |
Rs. 10.00 each |
Rs. 2.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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198000 |
Equity Shares |
Rs. 10.00 each |
Rs. 1.980
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1.980 |
1.980 |
1.780 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.510 |
0.510 |
0.510 |
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4] (Accumulated Losses) |
(0.908) |
(1.042) |
(1.369) |
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NETWORTH |
1.582 |
1.448 |
0.921 |
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LOAN FUNDS |
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1] Secured Loans |
2.106 |
2.630 |
3.013 |
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2] Unsecured Loans |
3.906 |
3.656 |
3.295 |
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TOTAL BORROWING |
6.012 |
6.286 |
6.308 |
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DEFERRED TAX LIABILITIES |
0.308 |
0.244 |
0.239 |
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TOTAL |
7.902 |
7.978 |
7.468 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4.338 |
4.686 |
5.281 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
5.628
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3.007 |
2.676 |
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Sundry Debtors |
2.166
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2.492 |
2.612 |
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Cash & Bank Balances |
0.027
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0.124 |
0.065 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1.031
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0.938 |
0.394 |
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Total
Current Assets |
8.852
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6.561 |
5.747 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4.587
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3.199 |
3.561 |
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Provisions |
0.700
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0.069 |
0.000 |
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Total
Current Liabilities |
5.287
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3.268 |
3.561 |
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Net Current Assets |
3.564
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3.292 |
2.187 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
7.902 |
7.978 |
7.468 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
17.596 |
21.506 |
12.513 |
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Other Income |
0.000 |
0.174 |
1.733 |
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Total Income |
17.596 |
21.680 |
14.246 |
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Profit/(Loss) Before Tax |
0.864 |
0.365 |
0.181 |
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Provision for Taxation |
0.730 |
0.038 |
0.105 |
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Profit/(Loss) After Tax |
0.134 |
0.327 |
0.076 |
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Expenditures : |
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Raw Material |
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14.083 |
7.149 |
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Payments and Benefits to Employees |
15.219 |
0.731 |
0.489 |
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Manufacturing and Administrative Expenses |
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4.846 |
4.630 |
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Financial Charges |
0.821 |
0.855 |
1.008 |
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Depreciation |
0.692 |
0.799 |
0.788 |
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Total Expenditure |
16.732 |
21.314 |
14.064 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
0.76
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1.51 |
0.53 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.91
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1.70 |
1.45 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.55
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3.25 |
1.64 |
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Return on Investment (ROI) (PBT/Networth) |
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0.55
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0.25 |
0.20 |
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Debt Equity Ratio (Total Liability/Networth) |
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7.14
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6.60 |
10.72 |
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Current Ratio (Current Asset/Current Liability) |
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1.67
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2.01 |
1.61 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
v
Land
v
Building
v
Borewell
v
Plant and Machinery
v
Electrical Installations
v
Furniture and Fixtures
v
Office Equipments
v
Vehicles
v
Computers
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Name of the company |
INDIAN TIMBER PRODUCTS PRIVATE LIMITED |
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Presented By |
Sri. S. Srinivas,
Managing Director |
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1) Date and description of instrument creating the change |
1.
Cash
Credit Agreement dated 09.09.1998 2.
Hypothecation
of Book Debts Agreement 3.
A. R.
F. 255 dated 09.09.1988 4.
Hypothecation
of movable machinery dated 09.09.1988 |
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2) Amount secured by the charge/amount owing on the securities of charge |
1.
Rs.
0.570 millions 2.
Rs.
0.400 millions Total : Rs. 0.970
millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
1.
Raw
Materials, work-in-progress, finished goods 2.
Sundry
Debtors 3.
Land
measuring AC -1.172 gts covered by Survey No. 55/A situated at Annaram (V),
Jinnaram (M) Medak District and land of 200 Sq. yards in Survey No. 54
together with all buildings constructed and to be consturcted there of. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin on Raw
Material 25%, Work-in-progress and finished goods30% margin on bills
discounted Interest shall be
at the rate of 5.50 % over Reserve Bank of |
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5) Name and Address and description of the person entitled to the charge. |
Andhra Bank Balanagar Branch, E-Mail: bmhyd057@andhrabank.co.in
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6) Date and brief description of instrument modifying the charge |
1.
23.08.2001
Pen Cash Credit Agreement RF 237 2.
RF
255 dated 13.05.1997 3.
RF
210 OCC Rs. 1.800 millions dated 23.08.2001 4.
RF 231
dated 14.08.1998 5.
RF
291 personnel guarantees dated 04.12.1998 6.
RF
293 dated 23.08.2001 Term Loan Agreement Rs. 1.780 millions |
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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. |
1.
Hypothecation
of Raw Materials, work-in-progress and finished goods 30% of margin 2.
Hypothecation
of Book Debts not older than 90 days with 50% margin 3.
1st
charge of factory land, Plant and Machinery with Andhra Bank, Balanagar. 4.
Rate
of Interest: 16% per annum |
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Corporate
identity number (CIN) Foreign company registration number |
U20230AP1986PTC006888 |
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Name of the
Company |
INDIAN TIMBER PRODUCTS PRIVATE LIMITED |
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Address |
604, Swarnajayanthi Complex, Ameerpet, |
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This form is for |
Modification of
Charge |
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Type of Charge |
v
Equitable
mortgage or mortgage of property by depositing the title deeds. v
Hypothecation |
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Particulars of
the charge holder |
Andhra Bank Balanagar Branch, E-Mail: bmhyd057@andhrabank.co.in
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Amount secured by
the charge |
Rs. 7.000
millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest for
Cash Credit 11.50% per annum, minus 1% presently 10.50% with monthly rest. Rate of Interest
for Term Loan 11.50% per annum, minus 1% presently 10.75% with monthly rest. Margin for Cash
Credit 25% on stock and 50% on Book Debts. Margin for Term
Loan 25% on Imported Machinery and 50% second hand machinery, repayable in 20
quarterly installments. |
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Description of
the property charged indicating whether it is a charge on |
v
Immovable
Property v
Plant
and Machinery v
Furniture
and Fixtures v
Stock
in trade v
Book Debts v
Vehicles
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Particulars of
the property charged (including location of the property) |
AC 1 Guntas 17.50
of Land situated in Survey No. 55/A, |
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Brief description
of the instrument modifying the charge under section 135 |
Composite
Agreement dated 12.09.2006, RF255B (Memorandum of Deposit of Title Deeds)
dated 12.09.2006 |
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Date of
instrument modifying the charge |
12.09.2006 |
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Particulars of
the present modification |
CC Limit enhanced
to Rs. 2.500 millions and Term Loan enhanced to Rs. 4.500 millions |
Website details attached:
Since antiquity, plywood has remained the favorite construction material
owing to its cosmetic effect, wide range of applications, and an unmatchable
resistance to cracks and breaks. Subject is engaged in the production of varied
types of plywood. Since 1987, they have been practising this art of revealing
the exquisite beauty of Teak, Maple, Cherry, Mahogany and other available
species crafting the products of superlative quality. They are the
distinguished manufacturer and exporter of all
types of ITP
Plywood, ITP Wood Flush Doors, ITP Panel Doors, LVL Doors, ITP Pallets and
ITP I-Beams -
each one of them at highly affordable prices. Indian Timber Products (P) Ltd.
offers these ISI marked fine wood products in slabs, premachined, finished,
glazed or any combination as per the specific requirements of the clients.
Exhibiting the world class quality, numerous variety, fantastic designs and an
exciting price list, their products are highly adorned by the architects and
interior designers from all over the world. As an ISO 9001 certified, they have
considerable experience in handling packing of all types of Heavy and Light
Machinery Engineering Goods, High Tech. Paper Products, Electronics and
Telecomm Equipment, Compressors, Spare Parts, Food Processing Machinery,
Castings, etc.
At present, they are exploring their products to the international
market where they are well known for their finest quality architectural flush
and panel doors, architectural plywood, block boards, industrial packing cases,
panels and other products. Inspired by the passion to excel and committed to
provide their customers the best product and service quality, they have come a
long way in their successful journey.
Quality
The manufacturing process of their timber products are rigorously controlled and certified. These products are designed and developed using the cutting edge manufacturing technology while their quality is maintained as per international quality norms. To ensure that all their plywood products adhere to ISI specified quality requirements, stringent quality checking is done at their in-house quality control unit by a team of highly qualified experts. At subject, they use the finest quality veneer and wood, process them with ultra modern technology like special seasoning process, and craft the finished products in exquisite designs. This is the reason why, their products are highly adorned all over the world, making us a brand that is synonymous to the best quality.
Infrastructure
Their workshop is spread over a sprawling 8,000 sq. meter land with a built up area of about 4,000 sq. meters. The manufacturing unit of Indian Timber Products (P) Ltd. is highly sophisticated and equipped with facilities and machinery like pressure treatment plant, series of seasoning kilns, hydraulic presses, 4 section 3 deck dryer, six spindle moulders, double end tennoners, wide belt sander, panel saw, hinge boring machine, finger jointing machine, glue spreader, multiple rip saw, double dimension saw, belt sander, R&D laboratory and quality control unit. Empowered by such a strong infrastructure, they have acquired an unparalleled expertise in their field
Primary Competitive Advantages
A Sound Infrastructure
Highly Reliable Products Of World Class
Quality
Affordable Price
Standard Certification
ISI
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. 41.57 |
|
|
1 |
Rs. 82.14 |
|
Euro |
1 |
Rs. 55.74 |
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 |
3 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
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 |
NO |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
33 |
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. |
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 |
|