MIRA
INFORM REPORT
|
Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SULOCHANA COTTON SPINNING MILLS PRIVATE LIMITED |
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Registered Office : |
424, 426, 483 Kamaraj Road, Tirupur 641604, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.01.1990 |
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Com. Reg. No.: |
18-2580 |
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CIN No.: [Company
Identification No.] |
U17111TZ1990PTC002580 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS05326G |
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PAN No.: [Permanent
Account No.] |
AADCS8189G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Wholesale of textiles, clothing and footwear |
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 1300000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track
records. Trade relations are
fair. Payments are usually correct and
as per commitments. The Company can be considered good for any normal business dealing at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
424, 426, 483 Kamaraj Road, Tirupur 641604, Tamilnadu, India |
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Tel. No.: |
91-421-2211824 |
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Mobile No.: |
91-9894303030 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Murugan Chettiar Shanmugam Chettiar |
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Designation : |
Director |
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Address : |
Old No. 120A, New No. 120A, Thennampalayam A.V.E. Layout, 1st
street, Tirupur 641604, Tamilnadu, India |
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Date of Birth/Age : |
29.10.1933 |
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Date of Appointment : |
18.01.1990 |
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Name : |
Mr. Shanmugam Chettiar Krishnakumar |
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Designation : |
Director |
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Address : |
Old No. 120A, New No. 120A, Thennampalayam A.V.E. Layout, 1st
street, Tirupur 641604, Tamilnadu, India |
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Date of Birth/Age : |
05.02.1963 |
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Date of Appointment : |
18.01.1990 |
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Name : |
Mr. Shanmugam Chettiar Kunjammal |
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Designation : |
Director |
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Address : |
Old No. 120A, New No. 120A, Thennampalayam A.V.E. Layout, 1st
street, Tirupur 641604, Tamilnadu, India |
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Date of Birth/Age : |
05.04.1936 |
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Date of Appointment : |
18.01.1990 |
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Name : |
Mr. Krishna Kumar Kannan |
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Designation : |
Managing Director |
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Tel. No. : |
91-421-2211824/825/826 |
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Mobile : |
91-9894303030 |
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E - Mail : |
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Name : |
Ms. Sudha Srikanth |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Krishnakumar Asha |
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Designation : |
Chief Executive Officer |
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Address : |
Old No. 120A, New No. 120A, Thennampalayam A.V.E. Layout, 1st
street, Tirupur 641604, Tamilnadu, India |
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Date of Birth/Age : |
24.03.1963 |
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Date of Appointment : |
01.09.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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M. Shanmugam Chettar |
|
20000 |
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S. Krishnakumar |
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20000 |
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S. Kunjammal |
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10000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Directors or relatives of the Directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Wholesale of textiles, clothing and footwear |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
800 |
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Bankers : |
Stock Exchange
Building, 683-686, Trichy Road, Coimbatore 641005, Tamilnadu, India
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
P. S. Krishnan and Company Chartered Accountants |
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Address : |
55, Universal Road, Tirupur, 641601, Tamilnadu, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
||
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
20.000 |
20.000 |
20.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
305.490 |
178.830 |
120.149 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
325.490 |
198.830 |
140.149 |
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LOAN FUNDS |
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1] Secured Loans |
967.070 |
449.314 |
342.195 |
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2] Unsecured Loans |
83.118 |
51.275 |
58.222 |
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TOTAL BORROWING |
1050.188 |
500.589 |
400.417 |
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DEFERRED TAX LIABILITIES |
104.743 |
74.723 |
51.920 |
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TOTAL |
1480.421 |
774.142 |
592.486 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
987.719 |
447.713 |
322.280 |
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Capital work-in-progress |
10.245 |
12.678 |
2.355 |
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INVESTMENT |
0.451 |
0.451 |
0.451 |
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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 |
341.076
|
239.976 |
264.104 |
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Sundry Debtors |
93.954
|
77.867 |
81.892 |
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Cash & Bank Balances |
8.686
|
29.173 |
15.930 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
153.422
|
91.897 |
34.964 |
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Total
Current Assets |
597.138
|
438.913 |
396.890 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
91.006
|
125.429 |
135.998 |
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Provisions |
26.550
|
7.250 |
5.200 |
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Total
Current Liabilities |
117.556
|
132.679 |
141.198 |
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Net Current Assets |
479.582
|
306.234 |
255.692 |
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MISCELLANEOUS EXPENSES |
2.424 |
7.066 |
11.708 |
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TOTAL |
1480.421 |
774.142 |
592.486 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1073.038 |
1011.190 |
727.283 |
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Other Income |
56.060 |
18.941 |
8.109 |
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Total Income |
1129.098 |
1030.131 |
735.392 |
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Profit/(Loss) Before Tax |
174.574 |
85.388 |
41.275 |
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Provision for Taxation |
59.764 |
31.963 |
20.103 |
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Profit/(Loss) After Tax |
114.810 |
53.425 |
21.172 |
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Earnings in Foreign Currency : |
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Total Earnings |
53.945 |
19.901 |
NA |
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Imports : |
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Total Imports |
239.238 |
27.119 |
29.712 |
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Expenditures : |
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Increase/(Decrease) in Finished Goods |
[32.606] |
13.177 |
[0.969] |
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Interest |
57.521 |
42.590 |
33.370 |
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Depreciation & Amortization |
33.291 |
21.624 |
17.938 |
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Other Expenditure |
896.318 |
867.352 |
646.778 |
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Total Expenditure |
954.524 |
944.743 |
697.117 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
10.17
|
5.19 |
2.88 |
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Net Profit Margin (PBT/Sales) |
(%) |
16.27
|
8.44 |
5.68 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
11.02
|
9.63 |
5.74 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.54
|
0.43 |
0.29 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.59
|
3.18 |
3.86 |
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Current Ratio (Current Asset/Current Liability) |
|
5.08
|
3.30 |
2.81 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
Bankers Charges
Report as per Registry
|
This Form is for |
Modification of charge |
|
Charge identification
number of the charge to be modified |
90007033 |
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Corporate
identity number of the company |
U17111TZ1990PTC002580 |
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Name of the
company |
SULOCHANA COTTON
SPINNING MILLS [PRIVATE] LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
483, Kamaraj Road, Tirupur 641604, Tamilnadu, India |
|
Type of charge |
Immovable property |
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Particular of
charge holder |
IDBI Bank Limited Stock Exchange Building,
683-686, Trichy Road, Coimbatore 641005, Tamilnadu, India |
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Nature of
description of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
01.06.2007 |
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Amount secured by
the charge |
Rs. 75.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
[a] Rate of
Interest As per the letter
of sanction and legal documents executed with the Bank by the Company [b] Terms of
payment As per the letter
of sanction and legal documents executed with the Bank by the Company [c] Margin As per the letter
of sanction and legal documents executed with the Bank by the Company [d] Extent and operation
of the charge Pari Passu first
charge on the fixed assets of the Company for the due repayment of credit
limits as noted in the enclosed sheet and second charge on the fixed assets
for the Working Capital limits extended by SBI together with interest,
additional interest, further interest, compound interest, liquidated damages,
premia on prepayment or on redemption, costs, charges, expenses and other
moneys to the Bankers. |
|
Short particulars
of the property charged |
Pursuant to
creation of equitable mortgage for the due repayment of entire dues to the
Bankers on the immovable properties belonging to the Company situated at S F
No. 326/2B – 01 Acres and 06 Cents, 326/4 – 12 Acres and 44 Cents totaling to
13.50 Acres situated at Gudimangalam Village udumalpet TK Coimbatore DT and S
F No. 1827/3, 1827/1, 1828 and 1828 totalling to 16 Acres together with
building and structure thereon and plant and machineries attached to the
Earth |
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Date of latest
modification prior to the present modification |
11.05.2005 |
|
Particulars of
the present modification |
There is no
change in the overall limit of Rs. 75 Millions extended by the Bankers. However Pari Passu 1st charge
on the fixed assets of the Company for the due repayment TLS – Indian Bank
Rs. 300.918 Millions, SBI Rs. 230.700, IDBI Rs. 75 Millions and UTIBL Rs.
147.400 Millions and 2nd charge on the fixed assets for the
working capital limits of Rs. 282 Millions extended by SBI together with
interest, additional interest, further interest, compound interest, L D,
Premia on prepayment and other dues. |
|
Name of the company |
SULOCHANA COTTON
SPINNING MILLS [PRIVATE] LIMITED |
|
Presented By |
S. Krishnakumar |
|
1) Date and description of instrument creating the change |
Deed of Hypothecation of Machinery, Accessories and tools dated
05.11.2003 Agreement for demand cash credit on the hypothecation of movable
properties dated 05.11.2003 |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Term Loan Rs. 72
Millions |
|
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 |
Machineries as
per list enclosed and the present and future machineries to be purchased
against this term loan All tangible
movable property such as products, stock in trade and goods of the company
which now or hereafter from time to time brought in, stored or be in or about
the premises warehouses or godowns of the borrowers in mettupalayam Road,
Kurudam Palayam Village, or anywhere else. |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest – Rs.
12..75% p.a. repayable in 60 monthly installments of Rs. 1.200 Millions each |
|
5) Name and Address and description of the person entitled to the
charge. |
Tamilnadu
Mercantile Bank Limited, Tirupur |
|
6) Date and brief description
of instrument modifying the charge |
Letter for
deposit of title deeds on 22.01.2004 |
|
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. |
Equitable
mortgage of land and factory building situated at S F No. 111 [part], 112 [
part], S F No. 113/2 [part], 317/2 of kurudampalayam village, Coimbatore
District to the extent of 10.30 acres belonging to the Company |
AS PER WEBSITE
DETAILS:
Subject puts high emphases
on product development good command of the markets and the cultivation of the
elite. Entering to the 14 years of successful business in dyed melange yarn
manufacturing, And garment exports.
They believe
perfection in crafting of yarn with fine combinations of colours which
transforms to inspiring textures and shades. The state of art Technology and
installed latest machines from various international brands, confident of
achieving international standards of yarn-parameters. The group with a total turnover
of about US $ 30 millions is poised for growth to establish itself as the
market leader in its fields of operations.
Mellange yarn is
their state-of-the-art plant, which is maintained in the best condition and
upgraded continuously. Sulochana group has further grown by diversifying into
High End Garment Manufacturing and setting up a 100% export oriented unit,
"ENNEM CLOTHINGS" having an installed capacity of 50,000 Garments all
together from its 4 units at Tirupur the southern Manchester of India,
(Coimbatore).
Type of
Factory:
Subject equipped
with a capacity of 60,000 spindles - 10,000 Kgs of Mellange yarn production per
day at Tirupur, and 10,000 Kgs of 100% cotton Hosiery combed and semi combed
yarn at unit-2 Coimbatore.
ENNEM CLOTHINGS an
ancillary of SULOCHANA GROUP has affiliated Modern Factory, which is equipped
with latest industrial machinery and modern techniques and highly trained man
power in garment manufacturing.
Annual
Turnover: US $ 30 Million
Sampling Design
facilities:
They have in house
design centre equipped with latest Fashion and product design software,
equipment and designer to develop new designs with latest International trends
for their valued clients.
Their sample department is well equipped with latest machinery and highly
trained sample makers to develop high quality samples of international
standard.
Quality Control
& Inspection:
Their Quality
Control department has no compromise attitude at every stage of manufacturing .
Details of
Production Unit : Sulochana Cotton
Spinning Mills P Ltd ( Unit- 1 & 2)
Details of
Machinery :
1. Trumac Blow Room
2. C100 Carding, Trumac Carding
3. LR, SL, RL, E7/4 COMBER
4. RSB 851 DRAWING, LR SIMPLEX
5. G5/1 RING FRAME AND 238 AUTOCONER
Dying &
Washing Facilities:
Dying and washing
units equipped with soft flow high temperature high pressure with a capacity of
4 Machines of 500 Kgs and 1 machine of 300 Kgs out put along with affiliated
washing units which specifically cater to provide various washing services such
as enzyme wash, bleach wash & other washing categories.
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 |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|