MIRA
INFORM REPORT
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Report Date : |
22.06.2007 |
IDENTIFICATION DETAILS
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Name : |
FINE PAPER SOURCE PRIVATE LIMITED |
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Registered Office : |
No. 17/ 9, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.06.2003 |
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Com. Reg. No.: |
18-50958 |
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CIN No.: [Company
Identification No.] |
U21015TN2003PTC050958 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEF03082C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject is engaged in the business of Paper and Boards cut to sized
and shape, Paper Stationery Products, Packing Products, Printed Paper and
Boards. |
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 39312 |
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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
records. 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 considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
No. 17/ 9, |
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Tel. No.: |
91-44-25384409 |
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Fax No.: |
91-44-25383289 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. M. A. Murugan |
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Designation : |
Managing Director |
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Address : |
No. 97, |
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Date of Appointment : |
03.06.2003 |
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Name : |
Mrs. Devasena Murugan |
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Designation : |
Director |
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Address : |
No. 97, |
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Date of Appointment : |
03.08.2003 |
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Name : |
Mr. D. Llango |
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Designation : |
Director |
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Address : |
No. 7, |
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Date of Appointment : |
01.07.2003 |
KEY EXECUTIVES
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Name : |
Mr. I B Harikrishna |
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Designation : |
Company Secretary |
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Tel. No.: |
91-44-42128225 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. A. A. Murugan |
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539995 |
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Mrs. Devasena Murugan |
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180000 |
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Mr. Rabi Krishna Patra |
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1 |
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Mr. S. Vasantharaman |
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1 |
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Mr. C. Muthukumar |
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1 |
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Mr. L. Sathappan |
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1 |
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Mr. R.M. Ramalingam |
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1 |
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Category |
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Percentage of
Holding |
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Director of Relatives of Director |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of Paper and Boards cut to sized
and shape, Paper Stationery Products, Packing Products, Printed Paper and
Boards |
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Products : |
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GENERAL INFORMATION
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Bankers : |
No. 2,
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. S. Viswanathan Chartered Accountants |
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Address : |
17, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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750000 |
Equity Shares |
Rs.10/- each |
Rs.7.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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720000 |
Equity Shares |
Rs.10/- each |
Rs.7.200
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 |
7.200 |
7.200 |
7.200 |
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2] Reserves & Surplus |
2.628 |
0.730 |
0.296 |
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NETWORTH |
9.828 |
7.930 |
7.496 |
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LOAN FUNDS |
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1] Secured Loans |
1.802 |
3.180 |
1.901 |
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2] Unsecured Loans |
0.000 |
0.431 |
0.328 |
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TOTAL BORROWING |
1.802 |
3.611 |
2.229 |
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DEFERRED TAX LIABILITIES |
0.011 |
0.082 |
0.066 |
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TOTAL |
11.641 |
11.623 |
9.791 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
5.322 |
5.612 |
6.413 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4.790
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2.688 |
2.151 |
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Sundry Debtors |
9.905
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7.673 |
4.829 |
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Cash & Bank Balances |
2.080
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0.317 |
2.060 |
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Other Current Assets |
0.217
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0.223 |
0.334 |
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Loans & Advances |
0.596
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0.103 |
0.190 |
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Total
Current Assets |
17.588
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11.004 |
9.564 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
11.342
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5.104 |
6.335 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
11.342
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5.104 |
6.335 |
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Net Current Assets |
6.246
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5.900 |
3.231 |
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MISCELLANEOUS EXPENSES |
0.073 |
0.111 |
0.147 |
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TOTAL |
11.641 |
11.623 |
9.791 |
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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 |
42.966 |
26.143 |
16.203 |
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Other Income |
0.000 |
0.011 |
0.387 |
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Total Income |
42.966 |
26.154 |
16.590 |
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Profit/(Loss) Before Tax |
3.001 |
0.733 |
0.481 |
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Provision for Taxation |
1.104 |
0.299 |
0.185 |
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Profit/(Loss) After Tax |
1.897 |
0.434 |
0.296 |
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Expenditures : |
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Direct Expenses |
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1.565 |
1.403 |
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Administrative, Selling and Other Expenses |
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3.011 |
2.911 |
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Purchases made for re-sale |
39.965 |
20.058 |
12.969 |
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Increase/(Decrease) in Finished Goods |
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0.537 |
2.151 |
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Interest |
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0.501 |
0.043 |
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Depreciation & Amortization |
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0.822 |
0.933 |
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Total Expenditure |
39.965 |
26.494 |
20.410 |
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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 |
(%) |
4.41
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1.65 |
1.78 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.98
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2.80 |
2.96 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
13.09
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4.41 |
3.01 |
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Return on Investment (ROI) (PBT/Networth) |
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0.30
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0.09 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.15
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0.64 |
0.84 |
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Current Ratio (Current Asset/Current Liability) |
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1.55
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2.15 |
1.50 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
♦
Computer and Printer
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Core Cutting Machine
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GSM Testing Machine
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Heat Sealing Machine
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Over Head Crane
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Pallet Track
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Pinning Machine
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Punching Machine
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Roll Saver Mark
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Shrink Wrapping – CP 1520
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Slitter Rewinder
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Spine Taping Machine
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Stabilizer
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Ubique Burster Strength M/C
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Weighing Machie 150 and 300 Kgs
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Trimmer – 3 Knife
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Energy Meter
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Encoder for computer console
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Forklift
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Cell Phone – Nokia - 1315
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Name of the company |
FINE PAPER SOURCE PRIVATE LIMITED |
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Presented
By |
Fine Paper Source Private Limited AND City
Union Bank Limited, Mandaveli, Chennai – 600028 |
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1) Date and description of instrument creating the change |
26.07.2004 Demand Promissory
Note(s) Hypothecation
(Machinery) Agreement(s) Agreement(s) of
hypothecation of Book Debts Hypothecation
(Goods) Agreement(s) Packing Credit
Agreement F.D.B.P.
Agreement Deed of Guarantee |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.7.500 millions OLCC – Rs.1.500
millions Combined PCL /
FDBP – Rs.5.000 millions ILC / FLC – Rs.1.000
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 |
Stock and
domestic receivable with 25% Margin
and Export receivable with 10% Margin Machineries
valued at Rs.3.500 millions, Accura Sheeter, Fork Lift, over head crane lying
at company’s premises at Plot No. – A3, Phase – 2, MEPZ – SEZ, Chennai –
600045 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
OLCC – Margin –
25%, Rate of Interest – 14%, PCL / FDBP – Margin – 25%, Rate of Interest –
8.50%, ILC / FLC –
Margin – 25%, Rate of Interest – 3% for ILC and for FLC as per Forex
Guidelines |
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5) Name and Address and description of the person entitled to the charge. |
City Union Bank
Limited Mandavell Branch,
Chennai - 600028 |
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Corporate
identity number (CIN) Foreign company registration number |
U21015TN2003ULT050958 |
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Name of the
Company |
FINE PAPER SOURCE
PRIVTE LIMITED |
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Address |
No. 9, |
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This form is for |
Modification of
Charge |
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Type of Charge |
Hypothecation |
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Particulars of
the charge holder |
Citi Bank N.A. No. 2, |
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Amount secured by
the charge |
Rs.6.000 millions |
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Brief of the
principal terms and conditions |
First exclusive
charge by way of hypothecation of
present and future current assets including stock and book dents of the
borrower. In consideration of
the lender having agreed to lend advance to the company said credit
facilities under agreement and declaration by the company interalia as
follows: Covenant by the
company to repay the facility and pay interest and all other monies in the
manner set out in the said agreement between the company and the Lender and
to company with the terms an conditions of the said Agreement. The said
current assets hypothecation to the lender by way of first exclusive charge
created in favour of the bank, as security for and be charged with the
repayment of the loan with all interest, liquidated, damages, premia on
prepayment or on redemption, costs, charges, and other expenses payable by
the company to the lender in respect thereof. Margin – 36% for stocks and 44%for book
debts The company to
keep the said assets in marketable and good condition and also insured as
provided therein Power of entry,
power to take charge and / or possession of, seize, recover, receive, appoint
and sell, contract, dispatch for realization or otherwise dispose o for deal
with all or any part of the said goods; etc as provide therein. |
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Description of
the property charged indicating |
Stock in Trade,
Plant and Machinery, Book Debts, Furniture and Fixture |
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Charge
identification |
Doc No: 18
registered on 07.06.2005 |
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Brif description
of the instrument modifying the charge under section |
Deed of
Modification |
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Date of
Instrument |
20.05.2006 |
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Particular of the
present modification |
All other terms and
conditions remaining unchanged: the amount secured by the charge is increased
to Rs.10.000 millions |
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.75 |
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|
1 |
Rs.81.17 |
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Euro |
1 |
Rs.54.59 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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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 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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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 |
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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 |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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