MIRA INFORM REPORT
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Report Date : |
07.06.2007 |
IDENTIFICATION DETAILS
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Name : |
LINK-UP TEXTILES LIMITED |
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Registered Office : |
No. 6AB – 7AB, Sridevikuppamroad, Kumaran Colony, Valasaravakkam,
Chennai – 600 087, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.03.1995 |
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Com. Reg. No.: |
030414 |
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CIN No.: [Company
Identification No.] |
U17111TN1995PLC030414 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEL02019D |
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PAN No.: [Permanent
Account No.] |
AAACL1248E |
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Legal Form : |
Closely held public limited liability Company. |
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Line of Business : |
Manufacturing and Exporting of knitting clothes, Ladies nightwear,
Jeans, T-shirts, Fabric Accessories, etc. |
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 110000 |
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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 : |
No. 6AB – 7AB, Sridevikuppamroad, Kumaran Colony, Valasaravakkam,
Chennai – 600 087, |
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Tel. No.: |
91-44-24866034 / 44 |
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Fax No.: |
91-44-24866912 |
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E-Mail : |
lintex@eth.net ; accounts@linkuptextiles.com |
DIRECTORS
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Name : |
Mr. V. Sundhram |
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Designation : |
Managing Director |
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Address : |
G-42, Tarapore apartments, |
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Date of Birth/Age : |
08.11.1959 |
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Date of Appointment : |
06.11.2000 |
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Name : |
Mr. V. Vijay Kumar |
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Designation : |
Director |
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Address : |
39, 3rd Karkana Street, Gugai, |
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Date of Birth/Age : |
01.02.1964 |
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Date of Appointment : |
08.03.1995 |
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Name : |
Mrs. K. Rajeshwari |
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Designation : |
Director |
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Address : |
G-42, Tarapore apartments, |
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Date of Birth/Age : |
10.01.1964 |
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Date of Appointment : |
19.08.2000 |
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Name : |
Mrs. Saratha |
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Designation : |
Director |
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Address : |
G-42, Tarapore apartments, |
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Date of Birth/Age : |
10.01.1936 |
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Date of Appointment : |
19.08.2000 |
KEY EXECUTIVES
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Name : |
Mr. P. Nagraj |
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Designation : |
Chief Administrator |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. V. Vijay Kumar |
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25100 |
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Mrs. K. Rajeshwari |
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46000 |
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Mr. V. Saratha |
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25000 |
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Mr. V. Sundhram |
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35000 |
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Mrs. Shantha |
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100 |
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Mrs. Vijayshanthi |
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30000 |
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Mr. K. Krishnaswamy |
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39000 |
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Total |
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200200 |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of knitting clothes, Ladies nightwear,
Jeans, T-shirts, Fabric Accessories, etc. |
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Products : |
Item Code No 6204.62 Ctn 6208.21 Ctn 6207.11 Ctn |
Product
Description Gents Trousers Pyjamas Boxer Shorts |
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Exports : |
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Products : |
v
Ladies Nightwear v
Jeans v
T-shirts |
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GENERAL INFORMATION
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Suppliers : |
v
Abacus Textiles, Thane v
Eagle Global Logistics v
Chinda Fasions v
Braitrim India Private Limited v
Janaksons, Tirupur v
K C Astir and Company private Limited v
Lord Ve v
Mohideen v
Oswal Trading company v
Saratha Silks v
Venus Fabrics Dishnet DSL v
Fab Tech v
Guru Electricals v
Mahindra Electricals v
Hex Cargo v
Impex Syndicate v
Orbit Air conditioner v
Pasage Cargo Private Limited v
Sri Ganesh Trading v
Wilson Sandhu Logistics Private Limited v
Xcellent Garment Machinery |
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Customers : |
v
American Textile Systems v
BIR Associates v
Bonmarche v
Chennai International v
Dutexdor v
Euro Disney v
Oriental Garment Groups v
Primark Stores Limited v
Q S Plc v
Roy Waston v
Sabor Sri v
SNGR (Ghanty ET Sitdy) v
Superlight Garment Industries v
Yestowel |
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Bankers : |
v
ICICI Bank Limited v
Centurion Bank v
Punjab National Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K R Sarangapani and Company Chartered Accountants |
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Address : |
28 / 1, Anjham Nagar, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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500000 |
Equity Shares |
Rs. 10.00 each |
Rs. 5.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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200200 |
Equity Shares |
Rs. 10.00
each |
Rs. 2.002
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.002 |
2.002 |
2.002 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
27.030 |
25.306 |
24.018 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
29.032 |
27.308 |
26.020 |
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LOAN FUNDS |
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1] Secured Loans |
14.182 |
1.281 |
15.511 |
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2] Unsecured Loans |
3.727 |
0.000 |
0.000 |
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TOTAL BORROWING |
17.909 |
1.281 |
15.511 |
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DEFERRED TAX LIABILITIES |
1.973 |
1.606 |
1.402 |
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TOTAL |
48.917 |
30.495 |
43.356 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
32.166 |
19.145 |
17.677 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
4.012 |
0.012 |
0.012 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
10.618
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2.946 |
18.011 |
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Sundry Debtors |
27.623
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19.001 |
16.930 |
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Cash & Bank Balances |
4.960
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5.786 |
3.460 |
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Fixed Deposits with Bank |
0.000
|
1.885 |
1.592 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
5.341
|
4.871 |
9.099 |
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Advances against Purchases |
0.000
|
1.975 |
1.445 |
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Total
Current Assets |
48.542
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36.464 |
50.537 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
0.000
|
12.743 |
9.490 |
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Bills Purchase |
0.000
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10.297 |
13.722 |
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Current Liabilities |
33.628
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0.000 |
0.000 |
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Provisions |
2.178
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2.386 |
1.661 |
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Total
Current Liabilities |
35.806
|
25.427 |
24.873 |
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Net Current Assets |
12.736
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11.038 |
25.664 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.003 |
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TOTAL |
48.917 |
30.495 |
43.356 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
216.395 |
164.372 |
120.029 |
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Other Income |
6.964 |
13.370 |
14.418 |
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Increase in Stock |
0.000 |
(15064) |
(2.443) |
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Total Income |
223.359 |
162.678 |
132.004 |
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Profit/(Loss) Before Tax |
3.053 |
2.009 |
1.364 |
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Provision for Taxation |
0.960 |
0.518 |
0.176 |
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Profit/(Loss) After Tax |
2.093 |
1.491 |
1.188 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
154.272 |
120.029 |
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Freight Charges |
0.000 |
1.806 |
1.975 |
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Total Earnings |
0.000 |
156.078 |
122.004 |
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Imports : |
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Raw Materials |
0.000 |
0.362 |
1.699 |
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Capital Goods |
0.000 |
0.915 |
0.521 |
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Fabrics |
0.000 |
3.052 |
1.540 |
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Total Imports |
0.000 |
4.329 |
3.760 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
132.388 |
106.837 |
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Administrative Expenses |
0.000 |
9.617 |
7.310 |
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Repairs and Maintenance |
0.000 |
1.304 |
1.172 |
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Raw Material Consumed |
193.004 |
0.000 |
0.000 |
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Selling Expenses |
0.000 |
12.563 |
10.289 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
0.251 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
(7.672) |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
13.189 |
0.000 |
0.000 |
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Managerial Remuneration |
0.450 |
0.000 |
0.000 |
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Payment to Auditors |
0.067 |
0.000 |
0.000 |
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Interest and Financial Charges |
4.479 |
3.644 |
4.174 |
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Insurance Expenses |
1.388 |
0.000 |
0.000 |
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Power & Fuel |
0.777 |
0.000 |
0.000 |
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Depreciation & Amortization |
1.520 |
1.154 |
0.887 |
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Other Expenditure |
12.852 |
0.000 |
0.000 |
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Total Expenditure |
220.306 |
160.669 |
130.640 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
0.94
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0.92 |
0.90 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.41
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1.22 |
1.36 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.78
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3.61 |
2.00 |
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Return on Investment (ROI) (PBT/Networth) |
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0.11
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0.07 |
5.24 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.85
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0.98 |
1.55 |
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Current Ratio (Current Asset/Current Liability) |
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1.36
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1.43 |
2.03 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
LINK UP TEXTILES
LIMITED |
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Presented By |
The Manager,
Punjab National Bank Mylapore Branch, |
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1) Date and description of instrument creating the change |
28.04.1995 Agreement of
hypothecation of stocks |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 3.000 millions
Packing Credit |
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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
Stocks of Woven Fab, Semi finished Good such as Ready Made Garments for
export |
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4) Gist of the terms and conditions and extent and operation of the charge. |
As per CI. 10 of
Agreement of hypothecation dated 29.04.1995 |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National
Bank Mylapore Branch, |
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6) Date and brief description of instrument modifying the charge |
18.01.2006 Term Loan Rs. 27.600 millions Hypothecation of assets to secure Term Loan. Other Limits remain unchanged Common Documents for over all limits Rs. 8.500 millions. Extract of Title Deeds Register. Hypothecation of Assets. |
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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 Bank has
reviewed the limits sanctioned to the company and the position is as under: |
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Limit FUND BASED: Packing Credit FOBP / FOUBP FOBNLC / FOUBNLC Ceiling on Fund Based
Limits Fresh Term Loan NON FUND BASED Letter of G’Tee ILC_ DA ILC_ DA – Sub Limit of 30 days Total |
Existing 250.00 225.00 100.00 51.500 3.000 3.000 (2.500) 57.500 |
Revised No Change No Change No Change 51.500 27.600 No Change No Change No Change 85.100 |
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First Charge on
present / Future block of Assets of the company – WDV 17.676 millions as of
31.03.2004 – First Charge on the factory land and buildings at Plot no. 6 A, 6B,
7A, 7B, door No. 84, Valasaravakkam Village, Kumaran Colony, S No. 45 / 3B
valued at about Rs. 7.100 millions. All conditions /
terms /ROI/ Charges as per copies of agreements enclosed and subject to
revision as per bank’s / RBI’s policies from time to time. CHARGE ON THE
AFFORESAID ASSETS STANDS MODIFIED FROM Rs. 57.500 MILLIONS TO Rs. 85.100
MILLIONS. |
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Fixed Assets
v Land
v Factory Buildings
v Electrical Fitting
v Plant and Machinery
v Computer
v Furniture and Fixture
v Office Equipments
v Vehicle
v TVS 50
v Yamaha
v Maruti Zen I
v
v Tempo – Minidor
v TVS Suzuki
v Xerox Machine
v Palio Car
Contingent Liabilities
v Letter of guarantee issued by Bank on behalf of the company (as on
31.03.2005) – Rs. 0.700 millions
v Letter of Credit
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. 40.98 |
|
|
1 |
Rs. 80.98 |
|
Euro |
1 |
Rs. 54.99 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--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 |
|
|
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--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 |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--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 |
|