MIRA INFORM
REPORT
|
Report
Date : |
07.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
LAKSHMI
CARD CLOTHING MANUFACTURING COMPANY PRIVATE LIMITED |
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Registered
Office : |
Semmipalayam Kuppusway
Naidupuram, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
06.01.1960 |
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Com.
Reg. No.: |
18-343 |
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CIN
No.: [Company
Identification No.] |
U17219TZ1960PTC000343 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
CMBL03203E |
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Legal
Form : |
Private limited liability company |
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Line
of Business : |
Manufacturer
of Card Clothing and Card Room Service Machineries |
RATING
& COMMENTS
|
MIRA’s
Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum
Credit Limit : |
USD
1500000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established and reputed company of LMW Group, a well- known industrial
house of The company can be considered good for normal business
dealing at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Semmipalayam Kuppusway
Naidupuram, |
|
Tel.
No.: |
91-4255-277105
to 277 107 |
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Fax
No.: |
91-4255-277107 |
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Website
: |
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CorporateOffice
: |
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Tel.
No.: |
91-422-210
205 [4 Lines] |
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Fax
No.: |
91-422-216694 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
Kuppuswamynaidupuram
Post 641 662, |
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Factory
1 : |
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Selling
Agent : |
1413, |
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Tel.
No.: |
91-422-2303083 |
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Fax
No.: |
91-422-2301515 |
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E-Mail
: |
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Liaison
Office: |
191, |
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Tel.
No.: |
91-44-2855 4990 / 2855 4369 |
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Branches
: |
Ahemedabad 203, Anshi Avenue, Behind Ketav
Petrol Pump, Opp. to Vandana School, Gulbai Tekra, Ahmedabad 380 015,
Gujarat, India Phone - 91-79
-2646 5754 Fax - 91-79 -2646
4933 E-mail - lccsoahdad1@sancharnet.in "Meeting Point",
S.C.O.487-488, Sector 35-C, Phone - 91 172 508
7324, 260 3771 (Extn.216) Fax - 91 172 262
1404 (Direct) E-mail - lccsochn@sancharnet.in 302, Pragathy Enclave, Bhagya Nagar Colony Opp:
Kukat Pally Housing Board, Kukat Pally Post Phone - 91-40-2306
5542 E-mail - lccsohyd@vsnl.net 305, Yesodha Apartments, 6/7, Mahaveer Nagar, Phone - 91-731-503
5175 E-mail - lccsoind@sancharnet.in E/1894, F-1, Karekar Sankul, Phone - 91-231-252
9709 E-mail - kpr_lccsokol@sancharnet.in Kolkata 32/3, Dist.Hooghly ( Phone – 91-33-2622 3142 E-mail - lccsocal@cal3.vsnl.net.in I-3 SIDCO Industrial Estate, K.Pudur, Phone - 91-452-256
5855, 256 6756 Fax - 91-452-256
8263 E-mail - lccsomd3@sancharnet.in Flat
No.203, Sukhakarta Apartments, 15, Balraj Marg, Dhantoli,
Phone - 91-712-2548340 E-mail - lccsongp@sancharnet.in Noida 403-C, Phone - 91-120-2511047/019 Fax - 91-120-2591498 E-mail - lccsondl@del2.vsnl.net.in |
DIRECTORS
|
Name : |
Mr. S. K.
Sundaram |
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Designation
: |
Chairman |
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Name : |
Mr. R.
Santhanam |
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Designation
: |
Vice Chairman and Managing Director |
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Name : |
Mr. S.
Pathy |
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Designation
: |
Director |
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Name : |
Mr. Ralph
a. Graf |
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Designation
: |
Director |
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Name : |
Mr. R. C.
H. Reddy |
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Designation
: |
Director |
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Name : |
Mr. S.
Harishankar |
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Designation
: |
Whole Time Director |
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Name : |
Mr. M Thangavelu |
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Designation
: |
Director |
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Name : |
Mr. V Mohan |
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Designation
: |
Director |
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Name : |
Mr. M Palaniswamy |
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Designation
: |
Director |
KEY
EXECUTIVES
|
Name |
Mr. S. K.
Sundaram |
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Designation |
Chairman |
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Date
of Birth |
20.19.1914 |
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Address
|
27, |
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Name |
Mr. R.
Santhanam |
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Designation |
Vice
Chairman and Managing Director |
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Date
of Birth |
04.03.1938 |
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Address
|
Prathisht,
183, |
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Name |
Mr. S.
Pathy |
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Designation |
Director |
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Date
of Birth |
17.11.1949 |
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Address
|
Rasakondalu,
27, |
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Name |
Mr. Ralph
A. Graf |
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Designation |
Director |
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Date
of Birth |
25.09.1939 |
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Address
|
Graf
Sales Limited, 28, Burgstrasse CH 8750, |
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Name |
Mr. R. c.
H. Reddy |
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Designation |
Director |
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Date
of Birth |
01.06.1935 |
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Address
|
48, |
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Name |
Mr. S.
Harishankar |
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Designation |
Whole
Time Director |
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Date
of Birth |
07.05.1973 |
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Address
|
Prathishta,
183, |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
|
Percentage of Holding |
|
Directors
& Promoters/Relatives |
|
85.00 |
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Paid-up
Capital held by Foreign Company |
|
15.00 |
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Total |
|
100.00 |
BUSINESS
DETAILS
|
Line
of Business : |
Manufacturer of Card Clothing and Card Room Service
Machineries |
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Product
|
Card Clothing v
Cylinder Wires v
Doffer Wires v
Flat Tops v
Lickerin Wires v
Special Wires v
Stripping Fillets C-Cleaner Mark II
Carding Systems v
Pre-operating Segments (POS) v
Stationary Flats above Lickerin (SFL) v
Stationery Flats above Doffer (SFD) v
Stationery Flats above Doffer (SFD) v
C-Factor System Card Room Accessories v
Bare Cylinder Grinder v
Metallic Wire Mounting Equipment v
Motorised Traverse Wheel Grinder v
Gravita-Traverse Wire Sharpener v
Restore – On the Card Flats Grinding Machine v
Flat End Milling Machine v
Flat Mounting Machine – DAM 40 v
Automatic Flat Grinding Machine v
Multi Roller Mounting Machine v
Flat Mounting Machine v
Automatic Flat Grinding Machine Hydro
Extractor RF Dryer |
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Exports
to : |
Africa, Europe, Far East Asia, |
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Imports
from : |
Europe and |
GENERAL
INFORMATION
|
No. of
Employees : |
800 |
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Bankers
: |
v
Bank of v
Andhra Bank, Andhra Bank, |
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Facilities : |
The
subject is enjoying the following facilities from Andhra Bank as per
agreement dated 28.06.2006
It is secured against immovable
properties of land admeasuring area of 40.12 Acres situated at Kuppusamy
Puram, Palladam Taluk, Hypothecation of plant and machinery, stocks and book
debts of the company. |
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Banking Relations : |
Good |
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Auditors
: |
M/s
Subbchar & Srinivasan Chartered
Accountants 34, M/s
Rajagopalan Chartered
Accountants 65-A, |
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Associates
: |
Ø
The Lakshmi Mills Company Limited 1100, Tel. No. 91-422-2215461/68 Fax No. 91-422-2216508 E-mail : contact@lakshmimills.com Ø
Lakshmi Machine Works Limited, Ø
Lakshmi Automatic Lom Works Ø
Lakshmi Synthetic Machinery Manufacturers Limited Ø
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Membership
: |
Confederation
of Indian Industry |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
500,000 |
Equity
Shares |
Rs. 100/- each |
Rs. 50.000 million |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
300,000 |
Equity
Shares |
Rs. 100/- each |
Rs. 30.000 million |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
|
30.000 |
30.000 |
|
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3]
Reserves & Surplus |
|
370.516 |
318.325 |
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NETWORTH
|
|
400.516 |
348.325 |
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LOAN
FUNDS |
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|
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|
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1]
Secured Loans |
|
98.673 |
99.175 |
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2] Unsecured
Loans |
|
114.637 |
97.833 |
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TOTAL
BORROWING
|
|
213.310 |
197.008 |
|
|
DEFERRED
TAX LIABILITIES |
|
12.986 |
17.270 |
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|
|
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|
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TOTAL
|
|
626.812 |
562.603 |
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|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
108.201 |
96.740 |
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FIXED ASSETS [Net Block]
|
|
0.000 |
2.884 |
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Capital work-in-progress
|
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INVESTMENT
|
|
87.168 |
53.139 |
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DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
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Inventories
|
|
124.357 |
125.447 |
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Sundry Debtors
|
|
151.068 |
122.776 |
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Cash & Bank Balances
|
|
207.836 |
176.399 |
|
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Other Current Assets
|
|
0.000 |
0.000 |
|
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Loans & Advances
|
|
212.867 |
155.762 |
Total Current Assets
|
|
696.128 |
580.384 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
|
110.512 |
81.527 |
|
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Provisions
|
|
155.518 |
90.814 |
Total Current Liabilities
|
|
266.030 |
172.341 |
|
Net
Current Assets
|
|
430.098 |
408.043 |
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MISCELLANEOUS EXPENSES
|
|
1.345 |
1.797 |
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|
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TOTAL
|
|
626.812 |
562.603 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
|
798.217 |
630.634 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
138.735 |
101.989 |
Provision for Taxation
|
|
48.916 |
38.751 |
Profit/(Loss) After Tax
|
|
89.819 |
63.238 |
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|
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Export Value
|
|
106.155 |
81.940 |
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|
|
|
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Import Value
|
|
75.131 |
NA |
|
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|
|
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Total Expenditure
|
|
608.696 |
487.318 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
|
11.25 |
10.03 |
Net Profit Margin
|
|
17.68 |
16.37 |
Return on Total Assets
|
|
10.06 |
8.60 |
Return on Investment (ROI)
|
|
22.43 |
18.15 |
Current Ratio
|
|
2.62 |
3.37 |
Quick Ratio
|
|
2.15 |
2.64 |
Debt Equity Ratio
|
|
0.53 |
0.57 |
Current Liabilities/Networth
|
|
0.66 |
0.49 |
Fixed Asset / Networth
|
|
0.27 |
0.28 |
Average Collection Days
|
|
70.28 |
71.94 |
Account Receivables Turnover
|
|
5.19 |
5.07 |
Inventory Turnover
|
|
6.31 |
4.97 |
Asset Turnover
|
|
7.25 |
6.44 |
LOCAL
AGENCY FURTHER INFORMATION
Subject has
entered into foreign collaboration with equity participation of 15%.
The company’s
product range include :
¯
Card
Clothing
Ø
Cylinder
Wires
Ø
Doffer
Wires
Ø
Flat
Tops
Ø
Lickerin
Wires
Ø
Special
Wires
Ø
Stripping
Fillets
¯
C-Cleaner
Mark II Carding System
¯
Card
Room Accessories
¯
Radio
Frequency Dryer
¯
Hydro
Extractor [Brand Name Zeneros] – It is specially designed for centrifuge of
yarn cones or cheeses after dyeing
¯
R.F.
Dryer [Brand Name INSTA] – It is very useful in cases where the textile
materials are to be dried after dyeing, mercerising or wet processing.
The company exports Metallic Card Clothing, Flat Tops,
Lickerin Wire Stripping Fillets, C-cleaners, OE-rollers, Card Room Accessories,
Radio Frequency Dryers.
The company imports Steel Wire Rods, Steel Card Wire
It is in
trade terms with :
> Raymonds Limited, Chinchwada,
> Tuticorin Spinning Mills Limited,
Tuticorin, Tamil
> Dev Tharea Rag Rugs,
> Precot Mills Limited, Unit STP Dyeing
> Sivasakthi Tex Processes, Tirupur,
Tamil
The company is a part of the celebrated Indian corporate
house ‘The House of Lakshmi’ which holds a prestigious position in the textile
and textile machinery market. The
company offers the ‘Complete Card Room Technology’.
The company is capable of manufacturing complete range of
Card Clothing and Card Room Service Machineries. They have been awarded the EN-ISO 9001
certification by RW-TUV of
The subject company has recently
launched 6 new products. In addition to the existing cardroom accessories, 4
new products have been launched. One product - CuttySharp II from Card Clothing
& one more product - C-Factor Carding System has also been launched
The efforts of its R & D team backed by expertise and
quality is sustained by its close association with leading Original Equipment
Manufacturers like LMW an TRUMAC. This
has lead to the development of sophisticated products, which have
revolutionised the carding technology.
AS PER WEBSITE
Subject is a part of the celebrated Indian
corporate house "THE HOUSE OF LAKSHMI" which holds a
prestigious position in the textile and textile machinery market. Lakshmi Card
Clothing offers the "Complete Card Room Technology".
They
are capable of manufacturing complete range of Card Clothing and Card Room
Service Machineries. They have been awarded the EN - ISO 9001 : 2000
certification by RW-TUV of
The efforts of their R&D team backed by expertise and
quality is sustained by its close association with leading Original Equipment Manufacturers
(OEM) like LMW and TRUMAC. This has lead to the development of sophisticated
products, which have revolutionized the carding technology.
Products
They
produce a variety of products to meet the basic and comfort needs of modern
spinners for carding all types of fibres to improve quality.
Products Include:
·
C - Cleaner
MARK II Carding System
·
Radio Frequency Dryer & Hydro
Extractor
Services
Subject has a well
linked Sales and Service network. This helps us in providing excellent service
and support to their customers.
They are represented by both International & National
selling agents.
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
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.40.63 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.54.89 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
|
68 |
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
|
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 |