MIRA
INFORM REPORT
|
Report Date : |
16.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MAHESH
KUMAR SPINNING MILLS PRIVATE LIMITED |
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Registered Office : |
No.
65, Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641
601, Tamilnadu, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.10.2002 |
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Com. Reg. No.: |
18-10347 |
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CIN No.: [Company
Identification No.] |
U17111TZ2002PTC010347 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBM03795B |
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PAN No.: [Permanent
Account No.] |
AADCM4550B |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
To
Carry on the business of ginning, spinning, weaving or manufacturing or
dealing in cotton, silk or other fibrous substances and the preparation, dyeing
or colouring of any of the said substances and sale of yarn, cloth and silk. To
carry on the business of spinning of yarn out of natural fibres such as
cotton, flax, hemp, jute, ramie, silk, wool, mohair, alpaca, vicuna, llama,
cashmere, caml hail, rabbit wool and out of artificial fibres, say, rayons of
all kinds such as viscose, cupramr onium, acetate, casein, ardil, alginate,
nylons, vinyon and spinning of teryne yarn. |
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
150000 |
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Status : |
Satisfactory |
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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 satisfactory rack. Directors
are reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are usually correct and as per
commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office/ Factory : |
No.
65, Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641
601, Tamilnadu, India. |
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Tel. No.: |
91-421-220493 |
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E-Mail : |
DIRECTORS
|
Name : |
Ms. B.
Maheswari |
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Designation : |
Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
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Name : |
Mr. R.
Balasubramaniam |
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Designation : |
Managing
Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
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Name : |
Mrs.
B. Jayalaxmi |
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Designation : |
Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
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Name : |
Mr. B.
Senthil Kumar |
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Designation : |
Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
|
Mr. R
Balasubramaniam |
2500 |
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Mrs.
Jayalaxmi Balasubramaniam |
2500 |
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Ms.
Maheswari Balasubramaniam |
2500 |
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Mr. B.
Senthil Kumar |
2500 |
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TOTAL: |
10000 |
BUSINESS DETAILS
|
Line of Business : |
To
Carry on the business of ginning, spinning, weaving or manufacturing or
dealing in cotton, silk or other fibrous substances and the preparation,
dyeing or colouring of any of the said substances and sale of yarn, cloth and
silk. To
carry on the business of spinning of yarn out of natural fibres such as
cotton, flax, hemp, jute, ramie, silk, wool, mohair, alpaca, vicuna, llama,
cashmere, caml hail, rabbit wool and out of artificial fibres, say, rayons of
all kinds such as viscose, cupramr onium, acetate, casein, ardil, alginate,
nylons, vinyon and spinning of teryne yarn. |
GENERAL
INFORMATION
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Bankers : |
State
Bank of India, Commercial Branch, 24 Stanes Road, 4th Street,
Tirupur – 641 602, Tamilnadu, India. |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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Auditors : |
T.
Kumaaravelu Chartered
Accountant |
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Tel. No.: |
Dr.
Radhakrishnan Road, Coimbatore – 642 012, Tamilnadu. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity
Shares |
Rs. 10/- each |
Rs. 16.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity
Shares |
Rs. 10/- each |
Rs. 16.000 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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16.000 |
16.000 |
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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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19.677 |
7.411 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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35.677 |
23.411 |
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LOAN FUNDS |
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1] Secured Loans |
|
64.839 |
73.813 |
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2] Unsecured Loans |
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23.457 |
25.405 |
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TOTAL BORROWING |
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88.296 |
99.218 |
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DEFERRED TAX LIABILITIES |
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2.755 |
3.268 |
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TOTAL |
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126.728 |
125.897 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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83.153 |
85.132 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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29.370 |
19.537 |
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Sundry Debtors |
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42.447 |
38.953 |
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Cash & Bank Balances |
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0.330 |
0.298 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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11.454 |
5.153 |
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Total Current Assets |
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83.601 |
63.941 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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1.235 |
0.615 |
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Provisions |
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38.904 |
22.701 |
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Total Current Liabilities |
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40.139 |
23.316 |
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Net Current Assets |
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43.462 |
40.625 |
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MISCELLANEOUS EXPENSES |
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0.113 |
0.140 |
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TOTAL |
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126.728 |
125.897 |
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KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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3.60 |
5.23 |
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Current
Ratio (Current
Asset/Current Liability) |
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2.08 |
2.74 |
LOCAL AGENCY
FURTHER INFORMATION
|
Name of the Company |
MAHESH KUMAR SPINNING MILLS PRIVATE
LIMITED |
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Presented by |
Mr. R. Balasubramaniam, Managing Director |
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1.
Date and description of the instrument creating or evidencing the charge
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21.03.2003 Agreement
loan overall Limit. Agreement
of Hypothecation of goods and Assets. Letter
regarding the grant of Individual Limits within overall Limits. Letter
evidencing creation of equitable mortgage. (No Instrument). Sanction
order/ Arrangement Letter of issued by State Bank of India, Tirupur (No
Instrument). |
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2.
Amount secured by the charge /amount
owing on security of the charge |
The
Overall Amount is Rs. 56.000 Millions as detailed below:
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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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First
Charge – Term Loan Equitable
Mortgage over the land and building at SF 294/1 Thandukarampalayam Village.
Avinashi TK. P. Puliam Datti Sub Road, Gobi Regn., Dt. Land measuring about
2.59 Acres of Land and Building constructed thereon. Hypothecation
of all the fixed assets. Plant and machineries purchased/ proposed to be
purchased out of term loan. First
and Exclusive Charge – Cash Credit Limits: Hypothecation
of stocks viz. Raw Materials, Semi-finished goods, Finished goods and all
consumable stores spares and receivables and Books of the company. L.C is
further secured by goods/bills covered under the L.C. Further
the term loan of Rs. 40.000 Millions is secured by second charge over the
current assets of the company. Further
the cash credit facility of Rs. 9.500 Crand LC of Rs. 20.000 Millions are
secured by Second
Charge over the residual value of fixed assets in the name of the company to
the extent of 2.59 Acres & building thereon of the company. |
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4.
Gist of the terms and conditions and extent and operation of the charge. |
Term Loan: 2.10%
points over SBMTLR (11.25% p.a. w.e.f. 1.11.02). The present effective rate
being 13.35% p.a. on monthly rests, subject to revision from time to time. Cash Credit: 2.10%
points over SBMTLR (10.75% p.a. w.e.f. 01.11.02). The present effective rate
being 12.85% p.a. on monthly rests, subject to revision from time to time. Margin: TERM LOAN: Building
– 50% Machineries
– 25% CASH CREDIT: Raw
Materials – 25% Stock
in Process – 30% Finished
Goods – 25% Store/Spares/Consumables
– 50% Receivables
– 50% (Cover Period 45 days) Inland
/ Import L.C. – 25% Repayment: TERM LOAN: The
Term Loan of Rs. 46.500 Millions will be repaid in 22 quarterly instalments
with a holiday period of 3 quarters (03 April – 03 December) Repayment
commencing from March 2004 and ending in June 2009 as detailed below:
CASH
CREDIT – ON DEMAND |
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5.
Names, address and description of the
persons entitled to charge |
State
Bank of India, Commercial Branch, 24 Stanes Road, 4th Street,
Tirupur – 641 602, Tamilnadu, India. |
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6.
Date and brief description of instrument modifying the charge |
07.07.2004 Supplemental
Agreement of Loan for Increase of Overall Limit. Agreement
of Hypothecation of Goods and Assets Letter
regarding the Grant of Individual Limits with in overall Limits. Letter
evidencing creation of Equitable Mortgage. (No Instrument) Sanction
order / Arrangement Letter issued by State Bank of India, Tirupur. (No
Instrument) |
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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 |
The
overall amount is Rs. 56.000 Millions increased to Rs. 83.000 Millions as
detailed below: (Amount in
Millions)
Further
the cash credit and L.C. facilities are secured by second charge over the
residual value of fixed assets (Including Factory Land). RATE OF INTEREST: Term Loan: Rs.
20.000 Millions. 2%
Points over SBMTLR. The present effective rate being 12.25% p.a. on monthly
rests. Subject to revision from time to time. Cash Credit: 2%
Points over SBMTLR. The present effective rate being 12.25% p.a. on monthly
rests. Subject to revision from time to time. MARGIN: Term Loan: 27.27% Cash Credit: Raw
Materials – 25% Stock
in Process – 30% Finished
Goods – 25% Store/Spares/Consumables
– 50% Receivables
– 50% (Cover Period 45 days) Inland
/ Import L.C. – 25% REPAYMENT: Term Loan: The
Term Loan of Rs. 20.000 Millions will be repaid in 22 quarterly instalments
with a holiday period of 3 quarters (03 April – 03 December) Repayment
commencd from 31.12.2005 and ending in 31.03.2011 as detailed below:
CASH
CREDIT – ON DEMAND Other
Terms and conditions remained same. |
|
Name of the Company |
MAHESH KUMAR SPINNING MILLS PRIVATE
LIMITED |
|
Presented by |
MAHESH KUMAR SPINNING MILLS PRIVATE
LIMITED |
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1.
Date and description of the instrument creating or evidencing the charge
|
Hypothecation
of Equitable Mortgage or mortgage of property by depositing the title deeds. |
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2.
Amount secured by the charge /amount
owing on security of the charge |
Rs.
56.000 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
|
Hypothecation
of Immovable Properties, Plant & Machinery, Stock in Trade, Book Debts
etc. EM
Over the existing factory land & building at SF 294/1, Thadukarampalayam,
Avanashi TK. And charge over the entire Fixed Assets of the company both
existing and proposed. Fresh EM Over the company land at SF 294/2, and
additional building proposed to be constructed thereon. Hypothecation of all
the current assets of the company. |
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4.
Names, address and description of the
persons entitled to charge |
State
Bank of India, Commercial Branch, 24 Stanes Road, 4th Street,
Tirupur – 641 602, Tamilnadu, India. |
|
5.
Date and brief description of instrument modifying the charge |
Form
C-1, C-2, C-5 date 27.04.2006, Letter Evidencing Creation of fresh EM DT
27.04.2006, Letter Evidencing Additional Charge over the Existing Property of
the company dated 27.04.2006. |
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6.
Particular of the present modification |
Overall
Limit is increased from Rs. 83.000 Millions to Rs. 174.000 Millions. Further
limit is additionally secured by Property owned by 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 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. 44.07 |
|
UK
Pound |
1 |
Rs. 86.17 |
|
Euro |
1 |
Rs. 57.97 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
|