MIRA
INFORM REPORT
|
Report Date : |
24.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
S. P.
APPARELS LIMITED |
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|
|
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Registered Office : |
39-A,
Extension Street, Kaikattipudur, Avinashi, Coimbatore-641654, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.11.2005 |
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Com. Reg. No.: |
18-12295 |
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CIN No.: [Company
Identification No.] |
U1801TZ2005SGC012295 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS08509E |
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PAN No.: [Permanent
Account No.] |
AAJCS4031P |
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Legal Form : |
Closely
Held Public Limited Liability Company |
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Line of Business : |
Manufacturers
and Exporters of Garment |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
850000 |
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|
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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 new company and has performed well in the first year of its operations.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are as per
commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
39-A,
Extension Street, Kaikattipudur, Avinashi, Coimbatore-641654, Tamilnadu,
India |
|
Tel. No.: |
91-4296-304000/
304011 |
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Mobile No.: |
91-4296272870 |
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Fax No.: |
91-4296-304280/304281 |
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E-Mail : |
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Website : |
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Sewing Factory : |
1/477-A,
Avinashi Main Road, Neelambur, Coimbatore-641065, India |
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Tel. No.: |
91-422-2828380/
2627985 |
DIRECTORS
|
Name : |
Mr. V.
Venkidusamy Sakthivel |
|
Designation : |
Director |
|
Address : |
186-C,
Lakshmi Road, Salem-636004, Tamilnadu, India |
|
Date of Appointment : |
30.09.2006 |
|
Other Directorships : |
S. P.
Spinning Mills Private Limited S. P.
Superfine Cotton Mills Private Limited Crocodile
Products Private Limited |
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|
|
|
Name : |
Mr. S.
Rajagopal |
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Designation : |
Director |
|
Address : |
17/1,
Margosa Road, 17th Cross, Malleswaram, Bangalore-560003, Karnataka,
India |
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Date of Birth/Age : |
10.03.1940 |
|
Date of Appointment : |
30.01.2006 |
|
Other Directorships : |
Southern
Petrochemical Industries Corporation Limited National
Trust Housing Finance Limited GMR
Tambaram Tinivanam Expressways Private Limited SREI
Infrastructure Finance Limited SREI
Venture Capital Limited UTI
Securities Limited |
|
|
|
|
Name : |
Mr. V.
Sakthivel |
|
Designation : |
Director |
|
Address : |
186 C,
Lakshmi Road, Salem-636004, Tamilnadu, India |
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Date of Birth/Age : |
10.08.1949 |
|
Date of Appointment : |
30.01.2006 |
|
Other Directorships : |
S. P.
Superfine Cotton Mills Private Limited S. P.
spinning Mills Private Limited |
|
|
|
|
Name : |
Mr. S.
Latha |
|
Designation : |
Director |
|
Address : |
149,
East Sambandam Road, R. S. Puram, Coimbatore-641002, Tamilnadu, India |
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Date of Appointment : |
30.09.2006 |
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Other Directorships : |
Crocodile
Products Private Limited |
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|
|
|
Name : |
Mr. P.
Sundararajan |
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Designation : |
Director |
|
Address : |
255
(Old No.53), Erode Road, Vadivel Nagar, Karur-639002, Tamilnadu, India |
|
Date of Appointment : |
30.09.2006 |
|
Other Directorships : |
Southern
Petrochemical Industries Corporation Limited National
Trust Housing Finance Limited GMR
Tambaram Tinivanam Expressways Private Limited SREI
Infrastructure Finance Limited SREI
Venture Capital Limited UTI
Securities Limited |
KEY EXECUTIVES
|
Name
: |
Mr. P.
Kalaiselvan |
|
Designation
: |
Company
Secretary |
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Address
: |
38,
Mariappa Konar Street, Podanur, Coimbatore-641023, Tamilnadu, India |
|
Date
of Birth/Age : |
23.04.1961 |
|
Date
of Appointment : |
01.02.2006 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Mr. V.
Senthil |
5000 |
|
Mr. S.
Shantha |
5000 |
|
Mr. P.
Velusamy |
5000 |
|
Mr. V.
Padmini |
5000 |
|
Mr. P.
Ashokaraman |
5000 |
|
Mr. P.
Sunderarajan |
3975000 |
|
Mr. S.
Latha |
1000000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Exporters of Garment |
GENERAL
INFORMATION
|
Bankers : |
Ø
State
Bank of Mysore, 342, Post Office, Main Road, Avinashi-641654, Tamilnadu,
India Ø
State
Bank of Indore, 1056-C, UR House, Avinashi Road, Coimbatore-641018,
Tamilnadu, India |
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|
|
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Banking Relations : |
Satisfactory |
|
|
|
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Auditors : |
Paulraj
& Senthil Chartered
Accountants 7 AA,
Ramakrishna Road, Sundaram Nursing Home Building, Coimbatore-636007,
Tamilnadu, India C.R.
Rajagopal Chartered
Accountants Deloitte
Haskins and Sells, Shanmugha Manram, 41, Race Course, Coimbatore-641018,
Tamilnadu, India |
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|
|
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Associates/Subsidiaries : |
S.P.
Texfab Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
21000000 |
Equity
Shares |
Rs.10/- each |
Rs.210.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity
Shares |
Rs.10/- each |
Rs.150.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
150.000 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
66.273 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
216.273 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
974.059 |
|
|
2] Unsecured Loans |
|
|
314.580 |
|
|
TOTAL BORROWING |
|
|
1288.639 |
|
|
DEFERRED TAX LIABILITIES |
|
|
84.629 |
|
|
|
|
|
|
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TOTAL |
|
|
1589.541 |
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|
|
|
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|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
835.234 |
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|
Capital work-in-progress |
|
|
186.334 |
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|
|
|
|
|
|
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INVESTMENT |
|
|
51.100 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
|
|
416.374 |
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|
Sundry Debtors |
|
|
333.666 |
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|
Cash & Bank Balances |
|
|
86.377 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
131.404 |
|
Total Current Assets |
|
|
967.821 |
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Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
425.800 |
|
|
Provisions |
|
|
28.560 |
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Total Current Liabilities |
|
|
454.360 |
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Net Current Assets |
|
|
513.461 |
|
|
|
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|
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MISCELLANEOUS EXPENSES |
|
|
3.412 |
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|
|
|
|
|
|
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TOTAL |
|
|
1589.541 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
|
31.03.2006 |
|
Sales Turnover [including other income] |
|
|
816.325 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
|
103.828 |
|
Provision
for Taxation |
|
|
37.555 |
|
Profit/(Loss)
After Tax |
|
|
66.273 |
|
|
|
|
|
|
Export
Value |
|
|
767.336 |
|
|
|
|
|
|
Total
Expenditure |
|
|
712.497 |
KEY
RATIOS
|
PARTICULARS |
|
|
|
31.03.2006 |
|
PAT / Total Income |
(%) |
|
|
8.12 |
|
|
|
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|
Net
Profit Margin (PBT/Sales) |
(%) |
|
|
12.72 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
|
5.76 |
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Return
on Investment (ROI) (PBT/Networth) |
|
|
|
0.48 |
|
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
|
8.06 |
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|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
|
2.13 |
LOCAL AGENCY
FURTHER INFORMATION
Form
8 Particular for creation or modification of charges
|
Corporation identity number or foreign company registrations number of the company |
U18101TZ2005PTC012295 |
|
Name of the company |
S. P.
APPARELS |
|
Address |
39-A,
Extension Street, Kaikattipudur, Avinashi, Coimbatore-641654, Tamilnadu,
India |
|
This Form is for |
Creation
of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
State Bank of Indore 1056-C, UR House, Avinshi Road, Coimbatore-641018, Tamilndu, India E-Mail : sbn3462@sbindore.co.in |
|
Nature or description of the instrument creating charge |
Agreement of Hypothecation of goods and assets dated 14.07.2006 |
|
Date of the instrument creating charge |
14.07.2006 |
|
Amount Secure by the charge |
Rs.150.000 millions |
|
Brief of the principal terms and conditions and extent and operation of the charge |
The charge operates as security for the due repayment and discharge by the company to State Bank of Indore of its term loan or Rupees One hundred fifty millions on first charge basis |
|
Description of the property charge whether it is a charge on |
Plant and Machinery Stock in Trade Book Debts Fixed assets including movable and immovable assets |
|
Particulars of the Property charged |
Fixed assets including movable and immovable assets whether lying, stored and kept are charged in favour of State Bank of Indore as described in the attached agreement of hypothecation of goods and assets dated 14.07.2006 |
COIMBATORE:
Subject is a leading
fully integrated garment exporter, on Thursday launched its new garment making
facility, one of the largest in the country, with 1,000 sewing machines.
The new unit, one of the largest
garment-making units in India and comparable with only large factories in
China, has been set up at a capital cost of Rs.380 millions, Managing Director
of the company P. Sundararajan claimed.
He said the facility would help
subject, which has recorded 25 per cent growth rate last year, in consolidating
its operations in-house and increase capacity by 50 per cent.
On expansion, he said the company
is investing Rs.3000 millions over a period of three years.
The company was expecting to
achieve a turnover of Rs.2400 millions, as against Rs.2000 millions registered
last year. Talks were on with foreign private players, for divesting up to 10
per cent equity, he said.
The company, which has recently
acquired a major share in Crocodile brand garments, would open 30 exclusive
brand outlets across the country, Sundararajan said.
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.44.21 |
|
UK
Pound |
1 |
Rs.87.48 |
|
Euro |
1 |
Rs.57.23 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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 |
|