MIRA
INFORM REPORT
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Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
GOMATHI SPINNING MILLS INDIA PRIVATE LIMITED |
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Registered Office : |
377, Uthukuli Main Road, Kunnathur, Erode – 638103,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.08.2004 |
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Com. Reg. No.: |
18-11286 |
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CIN No.: [Company
Identification No.] |
U17111TZ2004PTC011286 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBG03910E |
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PAN No.: [Permanent
Account No.] |
AACCG2292B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Company is in engaged in Spinning of Cotton Yarn. |
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 130000 |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track records. Trade
relations are fair. Payments are reported as 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 : |
377, Uthukuli Main Road, Kunnathur, Erode – 638103, Tamilnadu |
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Tel. No.: |
91-4294-265222 / 91-421-2424722 |
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Fax No.: |
91-4294-263805 / 91-421-2421099 |
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E-Mail : |
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Area : |
Large |
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Location : |
Owned |
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Corporate Office : |
No. 20, Dharapuram Road, Thillai Nagar, Tirupur - 641608, Tamilnadu, India |
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Branches : |
168/1, Umachivalasu, Uthukuli Road, Kmnnathur, Erode – 638103, Tamilnadu |
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Area : |
Large |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. K. V. Raju @Pallanisamy |
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Designation : |
Managing Director |
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Address : |
155, Karungalmedu, Kunnathur, Erode – 638601, Tamilnadu, India |
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Date of Appointment : |
20.08.2004 |
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Name : |
Mr. S. Kannusamy |
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Designation : |
Director |
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Address : |
Ponnakurai Thottam, Sokkanur Post, Kunnataur [Via], Erode, Tamilnadu,
India |
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Date of Appointment : |
20.08.2004 |
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Name : |
Mr. S. N. Ramaswamy Rajha |
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Designation : |
Director |
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Address : |
1, Narutai Nagar, Extension, Gandai Nagar, Gobi, Erode – 638452,
Tamilnadu, India |
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Date of Appointment : |
20.08.2004 |
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Name : |
Mr. M. V. Arangasamy |
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Designation : |
Director |
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Address : |
6, Melapalayam, Ollalakouil Post, Erode – 638460, Tamilnadu, India |
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Date of Appointment : |
01.04.2005 |
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Name : |
Mr. K. Periyasamy |
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Designation : |
Director |
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Address : |
Mohan Theatre Road, Sanba Thottam, Kunnathur, Erode – 638601, Tamilnadu,
India |
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Date of Appointment : |
01.04.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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K. V. Raju |
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400000 |
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P. A. Paravathi |
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161000 |
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S. R. Muthulakshmi |
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70000 |
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S Kannusamy |
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250000 |
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S. Linagappan |
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229500 |
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K. Natarajan |
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50500 |
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P. M. Arunachalam |
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51000 |
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K. A. Arumugam |
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51000 |
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M. Sadhasivam |
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60500 |
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P Appu Sivament |
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201000 |
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N. Rukkumani |
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50500 |
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M V Arangasamy |
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220000 |
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K Perlyasamy |
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304000 |
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K P Venkalachalam |
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155500 |
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K. Jeganathan |
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50500 |
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N. R. Subhashini |
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45000 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Bodies corporate |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Company is in engaged in Spinning of Cotton Yarn. |
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Terms : |
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Selling : |
Cash & Credit |
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Purchasing : |
Cash & Credit |
GENERAL
INFORMATION
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Customers : |
Wholesalers and End Users |
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No. of Employees : |
250 |
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Bankers : |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
E. Bhaskar Chartered Accountant |
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Address : |
9/91, Radhakrishna Street, Vidya Geetha IIIam, Ammapalayam, Tirupur –
641652, Tamilnadu, India |
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Associates/Subsidiaries : |
Ř Chola Textiles Private Limited Ř Cheran Spinning Mills Private Limited Ř Pandian Textile Mills Private Limited Ř Excel
Cotspin India Private Limited Ř Meera Textiles Private Limited CIN No.: U17111TZ1986PTC001750 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3500000 |
Equity Shares |
Rs. 10/- Each |
Rs. 35.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
3400000 |
Equity Shares |
Rs. 10/- Each |
Rs. 34.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
34.000 |
34.000 |
34.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[0.739] |
0.890 |
[0.092] |
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NETWORTH |
33.261 |
34.890 |
33.908 |
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LOAN FUNDS |
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1] Secured Loans |
214.736 |
97.810 |
0.000 |
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2] Unsecured Loans |
19.000 |
14.000 |
0.100 |
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TOTAL BORROWING |
233.736 |
111.810 |
0.100 |
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DEFERRED TAX LIABILITIES |
20.815 |
0.620 |
0.000 |
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TOTAL |
287.812 |
147.320 |
34.008 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
191.246 |
135.389 |
11.806 |
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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 |
63.514 |
14.710 |
0.000 |
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Sundry Debtors |
18.022 |
1.268 |
0.000 |
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Cash & Bank Balances |
24.463 |
4.298 |
0.207 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
24.687 |
11.716 |
21.778 |
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Total
Current Assets |
130.686 |
31.992 |
21.985
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
32.469 |
20.944 |
0.959 |
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Provisions |
2.585 |
0.184 |
0.024 |
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Total
Current Liabilities |
35.054 |
21.128 |
0.983
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Net Current Assets |
95.632 |
10.864 |
21.002
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MISCELLANEOUS EXPENSES |
0.934 |
1.067 |
1.200 |
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TOTAL |
287.812 |
147.320 |
34.008 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
209.230 |
39.278 |
0.000 |
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Total Income |
209.230 |
39.278 |
0.000 |
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Profit/(Loss) Before Tax |
20.967 |
1.663 |
[0.070] |
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Provision for Taxation |
22.596 |
0.781 |
0.022 |
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Profit/(Loss) After Tax |
[1.629] |
0.882 |
[0.092] |
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Expenditures : |
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Interest |
8.425 |
2.157 |
-- |
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Depreciation & Amortization |
15.655 |
5.056 |
-- |
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Other Expenditure |
164.183 |
30.402 |
-- |
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Total Expenditure |
188.263 |
37.615 |
-- |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
[0.78]
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2.25 |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
10.02
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4.23 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.51
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0.99 |
[0.21] |
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Return on Investment (ROI) (PBT/Networth) |
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0.63
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0.05 |
[0.00] |
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Debt Equity Ratio (Total Liability/Networth) |
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8.08 |
3.81 |
0.03 |
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Current Ratio (Current Asset/Current Liability) |
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3.73 |
1.51 |
22.37 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
GOMATHI SPINNING
MILLS PRIVATE LIMITED |
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Presented By |
Mr. S. N. Ramaswamy
Rajha, Executive Director and Bank of India, Chengapalli |
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1) Date and description of instrument creating the change |
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2) Amount secured by the charge/amount owing on the securities of charge |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The term loan of Rs.
96 Millions is secured by hypothecation of all tangible movable assets
including and in particular machineries of the spinning mills as details in
the “List of Machineries” annexed to the term loan agreement. The CC Limit of
Rs. 25.000 Millions is secured by Hypothecation of book debts and
hypothecation of tangible movable assets as detailed in the agreement. The CC /LC of Rs.
2.500 Millions is secured by Hypothecation of all tangible movable machinery and plant whether lying loose or in
cases at site or in transit which may be eventually installed at the prmises
of the borrow at Kunnathur. General right or
lien and set off over the securities of the company given in favour of the
bank for all sums due and outstanding to the bank. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
TL, CC and CC/LC
– Interest shall be charged at the rate of 0.75 % p.a. below BPL rate,
subject to minimum of 10 % p.a. or such other rate / rates as may be notified
by the bank to the borrower from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
Bank of India Chengapalli
Branch |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
90004665 |
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Corporate
identity number of the company |
U17111TZ2004PTC011286 |
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Name of the
company |
GOMATHI SPINNING MILLS PRIVATE LIMITED |
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Address of the registered
office or of the principal place of
business in India of the company |
377, Uthukuli Main Road, Kunnathur, Erode – 638103,
Tamilnadu, India |
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Type of charge |
Immovable Property |
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Particular of
charge holder |
Bank of India Star House, C-S,
“G” Block, Bandra Kurla Complex, Bandra [East], Mumbai – 400051, Maharashtra,
India |
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Nature of
description of the instrument creating or modifying the charge |
Memorandum of deposit
of title deed for creation of equitable mortgage |
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Date of
instrument Creating the charge |
09.10.2006 |
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Amount secured by
the charge |
Rs. 206.835
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
Terms of
repayment
Margin
Extent operation
of the charge Cash Credit, LC
and Guarantee – The charge covers for due repayment of loan and interest – 1st
Charge on movable property and immovable property of the company Term Loans – The
Charge cover for due repayment of loan with interest on machinery purchased
on respective loans and company land and building and windmill land. |
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Short particulars
of the property charged |
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Date of latest
modification prior to the present modification |
02.06.2006 |
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Particulars of
the present modification |
Creation of
Equitable mortgage on Wind Mill Land |
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.39.36 |
|
UK Pound |
1 |
Rs.80.58 |
|
Euro |
1 |
Rs.57.96 |
SCORE & RATING
EXPLANATIONS
|
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 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
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--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
40 |
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 |
|