MIRA
INFORM REPORT
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Report Date : |
22.08.2007 |
IDENTIFICATION DETAILS
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Name : |
KAANCHI CO – SRINIDHI SILK |
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Registered Office : |
Kaanchi Murugan Weavers Society, No. 2, 1st Floor, B.V.K. Iyengar
Road, Chickpet Circle, Bangalore – 560053, Karnataka |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1995 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRK047070 |
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PAN No.: [Permanent
Account No.] |
AAFK5352G |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the partners. |
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Line of Business : |
Manufacture and Traders in Silk Yarn, Fabrics, Sarees, Made – Ups and
related Accessories Also acts as Agent for reputed Manufacturers of Silk products |
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 280000 |
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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 a well established and reputed concern having satisfactory
track. Trade relations are fair. Payments are usually correct and as per
commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered
Office / Showroom : |
Kaanchi Murugan Weavers Society, No. 2, 1st Floor, B.V.K.
Iyengar Road, Chickpet Circle, Bangalore – 560053, Karnataka |
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Tel. No.: |
91-80-22260481 / 22286589 / 41243991 |
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Mobile No.: |
91-9845615841 (Mr. M.B. Gurunath) 91-9845064922 (Mr. Murrali M. Baaladev) |
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Fax No.: |
91-80-41243991 / 41247788 |
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E-Mail : |
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Area : |
3000sq.fts |
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Location : |
Owned |
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PARTNERS
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Name : |
Mr. M.R. Baladev |
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Designation : |
Partner |
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Date of Birth/Age : |
58 years |
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Qualification : |
Business |
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Name : |
Mr. Murali M. Haladev |
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Designation : |
Partner |
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Date of Birth/Age : |
30 years |
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Qualification : |
Business |
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Name : |
Mr. M.D. Mohan |
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Designation : |
Partner |
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Date of Birth/Age : |
28 years |
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Qualification : |
Business |
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Name : |
Mr. M. Deepakshini |
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Designation : |
Partner |
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Date of Birth/Age : |
24 years |
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Qualification : |
Business |
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Name : |
Ms. M. Vasundara |
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Designation : |
Partner |
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Date of Birth/Age : |
22 years |
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Qualification : |
Business |
BUSINESS DETAILS
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Line of Business : |
Manufacture and Traders in Silk Yarn, Fabrics, Sarees, Made – Ups and
related Accessories Also acts as Agent for reputed Manufacturers of Silk products. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Terms of Export: Advance and L/C Local |
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Purchasing : |
Terms of Import: L/C (60 to 90 days) Local Purchase: Against Payments |
GENERAL INFORMATION
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Suppliers : |
˛
Golden Silk, ˛
Murugan Silk Co-Op Society Limited ˛
Sree Varadara Jaswamy Silk Co-Op Society Limited ˛
Kancheepuram Silk Weavers Co-Op Society Limited ˛
Vallalar Silk Co-Op Society Limited ˛
Bharathiar Silk Co-Op Society Limited ˛
Dr. K. Karunanidhi Silk Co-op Society Limited |
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Customers : |
Public and Small Traders |
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No. of Employees : |
15 |
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Bankers : |
Canara Bank Chickpet, |
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Facilities : |
Rs.10.000 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Shankar Chartered Accountants |
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Address : |
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Memberships : |
Silk Mark Association |
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Associates/Subsidiaries : |
˛
Srinidhi Silk Industries, ˛
Srinidhi Fashions, |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.70.000 millions |
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Borrowed : |
-- |
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Total : |
Rs.70.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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90.000 |
75.000 |
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Profit/Loss for the year |
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7 to 8% |
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LOCAL AGENCY FURTHER INFORMATION
Average Value of Inventories at any given time: Rs.50.000 millions
Website Details Attached
Company Profile:
They are a leading manufacturer,
exporter, importer, trader and supplier of silk saris, silk apparels, readymade garments,
home furnishings and fashion accessories. They are a branded name in this field
since their inception in 1995 and have catering successfully to the worldwide
market. Taking into account all kinds of factors like texture, design and
color, they are proud to say that they produce some of the best quality
products used and adorned by millions of people all across the globe. The
quality of their product is amongst the best, exhibiting flawless design and
shape.
All their products
are delivered on time and at very affordable prices thus paving little way for
consumer grievances. That is the reason why they have been able to enjoy their
customers' support and trust for so many years. They are a privileged member of
Silkmark, one of the
foremost organization in this field. Their infrastructure is replete with
latest looms and machinery and expert craftsmen and artisans.
Their Vision
With all the support and trust shown by
their customers over the years they, at Kaanchi Co-Srinidhi Silk, have been
empowered to increase their capacity and capability. Some of their future plans
include enhancing their production facility and attaining vertical integration.
Quality
Quality is of
utmost importance at Kaanchi Co-Srinidhi Silk. Each and every aspect their
product like texture, color, shape and design are met with detailed precision.
Extensive efforts are made by their master designers and craftsmen to carve out
fashion friendly designs. Care is taken to procure finest quality silk &
fiber, cotton and polyester to make their range of products. Every item is
thoroughly monitored to give their customers the best that they deserve.
Quality supervisions are undertaken in accordance with international standards.
Infrastructure
They have a sound infrastructural system
with a perfect blend of highly skilled craftsmen & artisans and highly
sophisticated machinery which contribute in making beautiful designer products
for their valued customers. Their unit is outfitted with specialized equipment
like Sulzer and Rapier Looms. They adhere to strict industrial norms and
encourage healthy and transparent trade practices. They continuously upgrade
their machinery to be in rhythm with the latest trend in the market.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.01 |
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1 |
Rs.81.39 |
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Euro |
1 |
Rs.55.30 |
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 |
5 |
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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 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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