MIRA
INFORM REPORT
|
Report Date : |
05.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GTN
EXPORTS LIMITED |
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Registered Office : |
Plot
No. 29, Nagarjuna Hills, Punjagutta, Hyderabad – 500 082, Andhra Pradesh,
India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.07.1981 |
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Com. Reg. No.: |
01-41292 |
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CIN No.: [Company
Identification No.] |
U51909AP1981PLC041292 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00890B |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Cotton Grey and Dyed
Woven Fabrics. |
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
350000 |
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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 company of GTN Textile Group or Patodia Group. General financial position is satisfactory. Payments are reported as Usually correct and as per commitments. The
company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
Plot
No. 29, Nagarjuna Hills, Punjagutta, Hyderabad – 500 082, Andhra Pradesh,
India. |
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Tel. No.: |
91-40-23351585/ 78 / 79/87 |
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Fax
No.: |
91-40-2335 7820 |
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Email: |
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Website: |
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Corporate
Office : |
Ermathala Post, Alwaye – 683 105, Ernakulam – 683105, Kerala, India |
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Tel.
No.: |
91-484-2623715 |
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Fax
No.: |
91-484-2625634 |
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E-Mail
: |
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Location: |
Rented |
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Factory
1 : |
18, K. R. Puram Road, Ganapathy, Coimbatore, Tamil Nadu, India |
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Tel.
No.: |
91-422-2562930/2563328/2566517 |
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Fax
No.: |
91-2562496 |
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E-Mail
: |
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Contact Person: |
Mr. K. B. Babu, General Manager |
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Location: |
Owned |
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Branches
: |
Located at Mumbai, Kolkata, Cochin and
Chennai. |
DIRECTORS
|
Name : |
Mr.
Madanlal Patodia |
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Designation : |
Director |
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Address: |
7 Sambhunath Mullick Lane, Kolkata – 700
007, West Bengal, India. |
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Email: |
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Date
of Birth: |
20.09.1915 |
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Date
of Appointment: |
27.07.1981 |
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Name : |
Mr. Mahendra Kumar Patodia |
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Designation : |
Managing Director |
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Address: |
Patodia House, Plot No. 145, Road No. 3,
Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India. |
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Date
of Birth: |
25.08.1951 |
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Date
of Appointment: |
24.07.1981 |
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Email: |
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Name
: |
Mr.
Sushil Sancheti |
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Designation
: |
Director |
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Address: |
H No.
3-6168/4, Hyderguda, Hyderabad – 500 029, Andhra Pradesh, India. |
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Tel.
No.: |
91-40-23351585 |
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Fax
No.: |
91-40-23358387 |
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Email: |
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Date
of Birth: |
30.12.1973 |
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Date
of Appointment: |
02.12.2006 |
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Name
: |
Ms
Prachi Patodia |
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Designation
: |
Director |
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Address: |
Plot No. 145, Road No. 3, Banjara Hills,
Hyderabad – 500 034, Andhra Pradesh, India. |
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Email: |
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Date
of Birth: |
14.08.1979 |
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Date
of Appointment: |
08.12.2001 |
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Name : |
Mrs.
Umang Patodia |
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Designation : |
Director |
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Name : |
Mr.
Binod Kumar Patodia |
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Designation : |
Director |
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Name : |
Mr. T.
M. Gopalaswamy |
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Designation : |
Director |
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Name
: |
Mr.
Chandulal Dayalji Thakker |
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Designation
: |
Director |
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Name
: |
Mrs.
Radha Gobind Bhuradia |
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Designation
: |
Director |
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Name
: |
Mr. B.
L. Singhal |
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Designation
: |
Director |
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Name
: |
Mr.
Purshottamdas Patodia |
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Designation
: |
Director |
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Name
: |
Mr.
Rajendra Kumar Patodia. |
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Designation
: |
Director |
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Name
: |
Mr. E.
K. Balakrishnan |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
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EQUITY SHARES |
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GTN
Textiles Ltd. |
11 |
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Mr.
Madanla Patodia |
10 |
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Mrs. Anjana Patodia |
63400 |
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PREFERENCE SHARES |
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Mr.
Purshottamdas Patodia |
20 |
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Mr.
Binod Kumar Patodia |
20 |
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Mr. Mahendra Kumar Patodia |
20 |
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Mrs.
Indira Devi Patodia |
20 |
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Mrs.
Sharada Patodia. |
20 |
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Total: |
63521 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cotton Grey and Dyed
Woven Fabrics. |
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Products : |
Ř Trading in Engineering Goods Ř Cotton Grey & Dyed Woven Fabrics
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Exports to : |
Japan and Italy |
GENERAL
INFORMATION
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No. of Employees : |
90 |
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Bankers : |
Ř IDBI Bank, Coimbatore Ř Corporation Bank, Hyderabad Ř Punjab National Bank, CMO, Bank Street, Abids, Hyderabad. |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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Auditors : |
Lodha & Company Chartered Accountants |
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Address: |
6, Karim Chambers, 40, Ambalal Dashi Marg (Haman Street), Mumbai – 400 023, Maharashtra, India |
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Parent Company: |
Ř GTN Textiles Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
149750 |
Equity
Shares |
Rs. 100/- each |
Rs. 14.975 Millions |
|
250 |
Preference
Shares |
Rs. 100/- each |
Rs. 0.025 Millions |
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Total: |
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Rs. 15.000
Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
124231 |
Equity
Shares |
Rs. 100/- each |
Rs. 12.423 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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12.423 |
12.423 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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79.248 |
66.683 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
|
91.671 |
79.106 |
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LOAN FUNDS |
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1] Secured Loans |
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137.685 |
112.692 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
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137.685 |
112.692 |
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DEFERRED TAX LIABILITIES |
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7.085 |
6.377 |
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TOTAL |
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236.441 |
198.175 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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58.823 |
58.647 |
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Capital work-in-progress |
|
0.650 |
0.493 |
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INVESTMENT |
|
0.407 |
0.006 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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106.260
|
80.837 |
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Sundry Debtors |
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8.965
|
21.506 |
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Cash & Bank Balances |
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34.437
|
55.381 |
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Other Current Assets |
|
0.999
|
0.142 |
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Loans & Advances |
|
70.495
|
33.464 |
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Total Current Assets |
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221.156
|
191.330 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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19.984
|
31.238 |
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Provisions |
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24.611
|
21.063 |
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Total Current Liabilities |
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44.595
|
52.301 |
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Net Current Assets |
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176.561
|
139.029 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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236.441 |
198.175 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
432.022 |
313.669 |
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Profit/(Loss)
Before Tax |
|
(149.552) |
(189.011) |
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Provision
for Taxation |
|
0.000 |
0.000 |
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Profit/(Loss)
After Tax |
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(149.552) |
(189.011) |
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Export
Value |
|
320.850 |
NA |
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Total
Expenditure |
|
581.574 |
502.680 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
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(34.62) |
(60.26) |
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Net
Profit Margin (PBT/Sales) |
(%) |
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(34.62) |
(60.26) |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
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(53.21) |
(75.46) |
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Return
on Investment (ROI) (PBT/Networth) |
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(1.63) |
(2.39) |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.99 |
2.09 |
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Current
Ratio (Current
Asset/Current Liability) |
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|
4.96 |
3.66 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
Subject is engaged in as manufacturers of Cotton Grey and Dyed Woven Fabrics.
Subject is also engaged in as manufacturers and exporters of spice oils and oleoresins.
The
company’s product range includes :
Ř API 6A Valve Bodies
Ř Slabcastings
Ř Oemcomponents
Ř Sheave Castings
Ř Ni-hard Castings
Ř Gear and Gear boxes
Ř Non – Ferrous components
Ř Valve industry
Ř Shaft and rollers
It was the first company to export cotton yarn from India to Japan and Italy. In 1992, it exported virtually its entire production, although it is not an EOU. The installed capacity of its plant at Alwaye, Kerala has been increased from 12000 to 38600 spindles, bringing the company’s total spindleage to 60340. In January, 1993, the company came out with its maiden public issue to modernise the existing plans, meet long-term working capital requirements and invest in the groups newly promoted company, Patspin India Limited. The company and Packworth Udyog are subsidiaries of GTN Textiles.
In 2000-01, the company has raised term loan of Rs. 228.300 millions under Technology Upgradation Fund Scheme which provides for 5% interest subsidy, for marginal increase in capacity and substantial modernisation / replacement of old machinery across the units, by availing world-class technology.
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Name of the Company |
GTN EXPORTS LIMITED |
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Presented by |
Mr. M. K. Patodia, Director |
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1.
Date and description of the instrument creating or evidencing the charge
|
28th
October 2002 Agreement
of Hypothecation of movable assets forming part of fixed/book assets. Packing
Credit agreement (Hypothecation) |
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2.
Amount secured by the charge /amount
owing on security of the charge |
Amount in Millions
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3.
Short Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be
given
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The
hypothecation assets which expression shall include all the assets and
movable property of any king belonging to them, which now or hereafter from
time to time during to the continuance of this agreement shall be brought in,
stored or to be in or about their premises or godowns at Coimbatore and
Medchal or any other godowns to be in course of transit form one godown to
another or wherever else the same may be, as security for payment of the
balance due to bank by them at any time or ultimately found due on the
closing of the said loan accounts. |
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4.
Gist of the terms and conditions and extent and operation of the charge. |
Interest
rate @ PLR – 2.5% - Total 8% for pre and post-shipment and PLR + 3% for Term
Loans. |
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5.
Names, address and description of the
persons entitled to charge |
Punjab
National Bank, CMO, Bank Street, Abids, Hyderabad. |
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6.
Date and brief description of instrument modifying the charge |
8th
August 2005
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7.
Particular of modification specifying the terms and conditions or the extent
or operation of the charge in which modification is made and the details of modification |
Amount in Millions
Limit
under a) & b) should not be exceed Rs. 145.000 Millions and fully
interchangeable both ways: Overall
Limit enhanced from Rs. 77.500 Millions to Rs. 152.500 Millions Terms & Conditions: Total
Working Capital Limits of Rs. 152.500 Millions are secured by way of: First
Charge on the entire Current Assets (Present & Future) of the company
primary security in favour of Punjab National Bank , Bank Street, Hyderabad. Second
Charge on the entire movable fixed block assets (Present & Future) of the
company (Primary & Collateral) weaving division & engineering
Division in favour of Punjab National Bank , Bank Street, Hyderabad. 1. Export Packing Credit: Rs. 59.000
Millions Constinuation of the “Running account
packing credit facility” Interest:
BPLR – 3.25%, presently 7.50% p.a., subject to change from time to time as
per Bank/RBI guidelines. Each draw in the PC to be adjusted in 90 days. If
the company fail to export goods as envisaged within the stipulated period of
90 days for the date of advance, interest @ 14.25% p.a. from the 91st
day to be paid. Margin: 25% 2. FOUBP LIMT OF Rs. 87.000
MILLIONS: Sublimit
Rs. 15.000 Millions for bills drawn on M/S. Angus International INC., USA Interest: As per Bank guidelines from time to time. USANCE: As
per firm order not exceeding 90 days from the date of shipment in respect of
exports and not exceeding 180 days from the date of shipment in respect of
shipments to Angus International Inc., USA Margin: NIL Bills
not paid with in 30 days form the due date will be delinked and the company
to pay the amount at the prevailing exchange rate on the date of delinking. 3. OD AGAINST EXPORT
INCENTIVES: Rs. 5.000 Millions (Within FOUBP Limit) Interest: As per bank guidelines from time to time Margin: 10% 4. LETTER OF GUARANTEE LIMIT OF
Rs. 7.500 Millions Margin: 25% Commission: As per bank guildines from time to time. Period: Not exceeding 9 years In
case company commits default in repayment of the above loan/advance or in
repayment of interest thereon, Bank/RBI will have unqualified right to
disclose the name of the company. |
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 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. 44.11 |
|
UK
Pound |
1 |
Rs. 86.79 |
|
Euro |
1 |
Rs. 57.44 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|