MIRA
INFORM REPORT
|
Report Date : |
23.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
NETWORK
CLOTHING COMPANY PRIVATE LIMITED |
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Registered Office : |
2/641,
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.09.1999 |
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Com. Reg. No.: |
181-9010 |
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CIN No.: [Company
Identification No.] |
U18101TZ1999PTC009010 |
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IEC No.: |
3293000452 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBN03282G |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturers
and Exporters of Hosiery Garments and Fabrics |
RATING & COMMENTS
|
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
600000 |
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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 track.
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
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Registered Office : |
2/641,
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Tel. No.: |
91-421-2262022 |
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Fax No.: |
91-421-2262040 |
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E-Mail : |
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Website : |
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Area : |
49075
Sq.ft. |
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Location : |
Owned |
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Factory
1 : |
2/225,
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Factory
2 : |
NCC Vertex 2/642,
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Tel.
No.: |
421-2262022 |
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Area : |
74175
Sq.ft. |
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Location : |
Owned |
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Factory
3 : |
NCC Relay S.F.
No.90, 2/642, |
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Area : |
55000
Sq.ft. |
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Location : |
Owned |
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Factory 4 : |
NCC Spectra Plot
No. H.14, 4th Cross, |
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Tel. No.: |
91-4294-234025-26 |
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Area : |
60000
Sq.ft. |
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Location : |
Owned |
DIRECTORS
|
Name : |
Mr. M.
Ravi |
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Designation : |
Managing
Director |
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Address : |
2/621-C,
4th St. Hare Rama Hare Krishna Nagar, Mansalam Road, Andipalayam,
Tirupur, Tamilnadu, India |
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Date of Birth/Age : |
39
years |
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Qualification : |
M.B.A. |
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Experience : |
15
years |
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Date of Appointment : |
16.09.1999 |
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Name : |
Mr. R.
Nambirajan |
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Designation : |
Director |
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Address : |
2/906-B,
Kumaran, 2nd St. S.R. Nagar, |
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Date of Birth/Age : |
39
years |
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Qualification : |
B.Com. |
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Experience : |
10
years |
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Date of Appointment : |
16.09.1999 |
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Name : |
Mr. S.
Ramaswamy |
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Designation : |
Director |
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Address : |
1-D,
Kumar Nagar West, |
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Date of Birth/Age : |
48
years |
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Experience : |
15
years |
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Date of Appointment : |
16.09.1999 |
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Name : |
Mr. P.
Ramesh |
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Designation : |
Director |
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Address : |
1-304,
Kullegoundan Palayam, Andi Palayam, Tirupur-641652, |
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Date of Birth/Age : |
35
years |
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Experience : |
10
years |
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Date of Appointment : |
16.09.1999 |
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Name : |
Mr. P.
Suresh |
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Designation : |
Director |
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Address : |
1-304,
Kullegoundan Palayam, Andi Palayam, Tirupur-641652, |
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Date of Birth/Age : |
35
years |
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Experience : |
10
years |
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Date of Appointment : |
16.09.1999 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Mr. M.
Ravi |
533000 |
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Mr. R.
Vijaya |
2000 |
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Mr. S.
Ramaswamy |
1500 |
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Mr. P.
Ramesh |
1500 |
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Mr. P.
Suresh |
1500 |
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Mr. R.
Nambirajan |
1500 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Exporters of Hosiery Garments and Fabrics |
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Products : |
Hosiery
Garments |
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Exports to : |
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Terms : |
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Selling : |
L/C
and Credit (30 days) |
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Purchasing : |
L/C |
PRODUCTION
STATUS
|
Particulars |
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Installed Capacity |
Actual Production |
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Garments |
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|
600000 |
800000 |
GENERAL INFORMATION
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No. of Employees : |
2215 |
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Bankers : |
Ø
State Bank of Ø
State Bank of Ø
Corporation Bank, Tirupur Ø
The South Indian Bank Limited, Tirupur, |
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Facilities : |
State
Bank of Credit
Limit : Rs.180.000 millions Corporation
Bank, Tirupur Credit
Limit : Rs.360.000 millions |
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Banking Relations : |
Satisfactory |
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Auditors : |
N.
Sivachalam Chartered
Accountants, Tamilnadu Qualification
: B.Sc., F.C.A. |
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Address : |
Tirupur-641602,
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Tel. No.: |
91-421-2242644 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
550000 |
Equity
Shares |
Rs.100/- each |
Rs.55.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
541000 |
Equity
Shares |
Rs.100/- each |
Rs.54.100 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
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1] Share Capital |
|
54.100 |
54.100 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
96.600 |
79.600 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
150.700 |
133.700 |
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LOAN FUNDS |
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|
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|
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1] Secured Loans |
|
541.500 |
388.900 |
|
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2] Unsecured Loans |
|
2.600 |
7.700 |
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TOTAL BORROWING |
|
544.100 |
396.600 |
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DEFERRED TAX LIABILITIES |
|
17.500 |
15.900 |
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TOTAL |
|
712.300 |
546.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
267.100 |
226.200 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
15.700 |
13.400 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
314.300 |
216.500 |
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Sundry Debtors |
|
203.200 |
121.900 |
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Cash & Bank Balances |
|
17.000 |
4.700 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
62.400 |
46.100 |
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Total Current Assets |
|
596.900 |
389.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
|
150.500 |
73.900 |
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Provisions |
|
17.300 |
8.800 |
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Total Current Liabilities |
|
167.800 |
82.700 |
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Net Current Assets |
|
429.100 |
306.500 |
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MISCELLANEOUS EXPENSES |
|
0.400 |
0.100 |
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|
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TOTAL |
|
712.300 |
546.200 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
898.700 |
611.300 |
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Profit/(Loss)
Before Tax |
|
26.500 |
15.900 |
|
Provision
for Taxation |
|
9.600 |
5.100 |
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Profit/(Loss)
After Tax |
|
16.900 |
10.800 |
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Export
Value |
|
756.800 |
484.100 |
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Import
Value |
|
57.100 |
35.000 |
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Total
Expenditure |
|
872.400 |
596.000 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
1.88 |
1.77 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
2.95 |
2.60 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
3.07 |
2.58 |
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Return
on Investment (ROI) (PBT/Networth) |
|
|
0.17 |
0.12 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
4.72 |
3.58 |
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Current
Ratio (Current
Asset/Current Liability) |
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|
3.56 |
4.71 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or modification of
charges
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Name of the company |
NETWORK
CLOTHING COMPANY PRIVATE LIMITED |
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Presented By |
CORPORATION
BANK, |
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1) Date and description of instrument creating the change |
Term Loan Agreement dated 17.04.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan Rs.54.140 millions |
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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 |
Hypothecation of Dyeing Machines, Dryer Machines already acquired by the company out of SIDBI finance. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Purpose : To take over of liability from SIDBI – Loan under Tufs Scheme Rate of Interest : 12.25% p.a. raising or falling Repayment : 23 Quarterly equal instalments of Rs.2.360 millions. Interest to be paid as and when debited. |
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5) Name and Address and description of the person entitled to the charge. |
Corporation Bank, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
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Name of the company |
NETWORK CLOTHING COMPANY PRIVATE LIMITED |
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Presented By |
CORPORATION BANK, |
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1) Date and description of instrument creating the change |
Term Loan Agreement dated 06.06.2003 Agreement for Inland/ Foreign Bills dated 06.06.2003 Common deed of hypothecation of movables/ assets/ debts dated 06.06.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan Rs.22.500 millions Import LC Rs.17.500 millions |
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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 |
Hypothecation of assets financed by Bank. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
For Term Loan : For importing/ purchasing machines, vehicles and construction of building at a cost of Rs.30.000 millions. For import LC : To import machineries. Rate of Interest : For term loan : @CBMTLR – 12.25 % p.a. raising pr falling Repayment : 48 monthly instalments of Rs.0.469 millions with initial repayment holiday of 6 months. Margin for both Term Loan and Import LC : 25% Tenor of Import LC |
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5) Name and Address and description of the person entitled to the charge. |
Corporation Bank, Mangalam road, Tirupur |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
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Name of the company |
NETWORK CLOTHING COMPANY PRIVATE LIMITED |
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Presented By |
CORPORATION BANK, |
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1) Date and description of instrument creating the change |
Term Loan Agreement dated 09.05.2003 for Rs.0.757 millions Term Loan Agreement dated 09.05.2003 for Rs.15.444 millions Term Loan Agreement dated 09.05.2003 for Rs.4.966 millions Term Loan Agreement dated 09.05.2003 for Rs.0.675 millions Term Loan Agreement dated 09.05.2003 for Rs.7.363 millions Term Loan Agreement dated 09.05.2003 for Rs.1.320 millions Export Credit Agreement dated 09.05.2003 for Rs.70.000 millions Export Credit Agreement dated 09.05.2003 for Rs.100.000 millions Agreement for Inland/Foreign Bills dated for Rs.100.000 millions Common Deed of Hypothecation of Movables/ Assets/ Debts dated 09.05.2003 for overall limits. |
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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 |
Hypothecation of entire Plant and Machinery and all movable assets of the company. Hypothecation of stock consisting of Raw Materials, Stock in Process, Finished Goods, Stores and Spares, Consumables. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Purpose : Term Loan : Take over of Liabilities from the South Indian Bank Limited PCL : Pre shipment Export Credit FDBN/D/P : Post shipment Export Finance B.G. : To issue guarantees in favour of AEPC for procuring Export Quota. Rate of Interest : For Term Loan : @ CBMTLR i.e. 12.25% p.a. raising or falling For PCL/ FDBN/ D/P @ 7.5% p.a. Margin : PCL, BG – 25% Repayment :
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5) Name and Address and description of the person entitled to the charge. |
Corporation Bank, Mangalam road, Tirupur |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
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Name of the company |
NETWORK CLOTHING COMPANY PRIVATE LIMITED |
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Presented By |
Mr. Ravi, Managing Director |
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1) Date and description of instrument creating the change |
Agreement of Loan for overall limit. Agreement of Hypothecation of Goods and Assets Agreement of Pledge pf Goods and Assets Letter regarding the grant of individual limits within the overall limit. |
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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 |
Security
: Pari passu charge on the current assets
of the company (Corporation Bank and State Bank of First charge to the Bank on the FA Extension of charge over the F.A. of the company, Financed by such bank and second charge to the bank on the FA financed by the other Bank Goods covered by LC |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Repayment of Term Loan :
Repayment of Corporate
Loan :
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Commercial Bracnh No.1443, |
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6) Date and brief description of instrument modifying the charge |
Inter-se pari passu agreement between the
participating Banks in the Multiple Banking agreement dated 25.04.2005
(Inter-se pari passu agreement between State Bank of |
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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. |
The charge on assets of the company with
corporation bank for Rs.410.165 millions has been created and also another
charge on the assets of the company with State Bank of |
Website Details :
They are one of
the leading manufacturers of knitted garments in Tirupur, the
Every member of the NCC family has a defined and inevitable role
in the process and progress. The company holds fast to its Human Resource
policies by ensuring decent working hours, work environment, adequate training
programmes to motivate and develop their capabilities. Performance monitoring
and appraisal is a vital function in subject's HR Policy.
The company has been conferred with the SA 8000 and ETI-GSP
certifications for its social accountability – benchmarking the working hours,
social security benefits and following Health & Safety measures. Above all,
this factor is evident from the smiles that have grown with the company, over
the years.
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts,
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.21 |
|
|
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
-- |
|
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 |
|
45 |
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 |
|