MIRA
INFORM REPORT
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Report Date : |
19.06.2007 |
IDENTIFICATION DETAILS
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Name : |
RAMA QUALITEX LIMITED |
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Registered Office : |
S. No. 66/2, |
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Country : |
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
12.03.1993 |
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Com. Reg. No.: |
181-6729 |
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CIN No.: [Company
Identification No.] |
U17111TZ1985PLC006729 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHER05914G |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of Cotton Yarn Fabrics and Cotton Grey Cloth |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Maximum Credit Limit : |
-- |
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Status : |
Poor |
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Payment Behaviour : |
Slow |
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Litigation : |
-- |
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Comments : |
Subject is an old company having poor track. Company’s networth has
been eroded. It has huge accumulated losses. Payments are slow and delayed. The company can be considered for any business dealings on safe and
secured trade terms and conditions, only.
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LOCATIONS
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Registered Office : |
S. No. 66/2, |
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Tel. No.: |
91-4344-254282 / 254466 |
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Fax No.: |
91-4344-254477 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Jagdeesh Reddy |
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Designation : |
Managing Director |
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Address : |
Flat No. B 1, Chartered Court, 51/B, |
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Date of Birth/Age : |
06.11.1967 |
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Date of Appointment : |
12.03.1993 |
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Name : |
Mr. B. Chandran |
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Designation : |
Director |
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Address : |
Flat No. 16/B, 146C, |
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Date of Birth/Age : |
28.11.1946 |
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Date of Appointment : |
21.06.1993 |
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Name : |
Mr. C. Sasikanth |
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Designation : |
Director |
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Address : |
No. 202, House of Lords, |
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Date of Birth/Age : |
09.03.1951 |
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Date of Appointment : |
13.12.2001 |
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Name : |
Mr. N. Bagavathy |
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Designation : |
Director |
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Address : |
25/3, |
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Date of Birth/Age : |
05.01.1951 |
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Date of Appointment : |
27.03.2002 |
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Name : |
Mr. S. Sebthil Kumar |
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Designation : |
Director |
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Address : |
No. 34, |
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Date of Birth/Age : |
12.11.1966 |
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Date of Appointment : |
28.03.2003 |
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Name : |
Mr. N. U. Nampoothiri |
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Designation : |
Director |
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Address : |
No. 3, |
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Date of Birth/Age : |
24.08.1951 |
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Date of Appointment : |
28.03.2003 |
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Date of Ceasing : |
15.09.2004 |
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Name : |
Mr. K. Kalyanasundaram |
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Designation : |
Director |
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Address : |
No. 3, |
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Date of Birth/Age : |
15.09.1952 |
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Date of Appointment : |
15.09.2004 |
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Name : |
Mr. V. Soundararajan |
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Designation : |
Nominee Director |
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Address : |
47, Palaniappa Nagar, Madhavaram, Chennai – 600060, |
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Date of Birth/Age : |
15.09.1952 |
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Date of Appointment : |
15.09.2004 |
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Name : |
Mr. T. S. Surendranath |
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Designation : |
Nominee Director |
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Address : |
Anand Flats, Ground Floor “D”, Phase II, 50, Bajanai Koil Street,
Choolaimedu, Chennai – 600094, Tamilnadu, India |
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Name : |
Mr. S. Senthil Kumar |
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Designation : |
Nominee Director |
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Address : |
No. 34, |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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K. Jagdeesh Reddy |
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606615 |
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Chohal Investments Limited |
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200000 |
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Poly Investments Limited |
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200000 |
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TIDCO |
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2660000 |
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IDBI |
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2060000 |
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IFCI |
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1000000 |
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Surendra Reddy |
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1328975 |
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K. Bhanu Rekha Reddy |
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400000 |
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A. Vindhya Reddy |
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300000 |
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A. Prabhakar Reddy |
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700000 |
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K. Jayabharath Reddy |
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180000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cotton Yarn Fabrics and Cotton Grey Cloth |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Cotton Grey Fabrics |
Millions Mtrs |
8.025 |
8.025 |
3.003 |
GENERAL INFORMATION
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Bankers : |
State Bank of Industrial Finance
Branch, Residency Road, Union Bank of Industrial
Finance Branch, Chandra Kiran, 1st Floor, No. 10/A, Industrial Development Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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11000000 |
Equity Shares |
Rs. 10/- each |
Rs. 110.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
10206000 |
Equity Shares |
Rs. 10/- each |
Rs. 102.060
Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
102.060 |
102.060 |
102.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
[297.800] |
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4] (Accumulated Losses) |
[496.351] |
[390.327] |
0.000 |
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NETWORTH |
[394.291] |
[288.267] |
[195.700] |
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LOAN FUNDS |
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1] Secured Loans |
435.855 |
361.279 |
172.600 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
435.855 |
361.279 |
172.600 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
41.564 |
73.012 |
[23.100] |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
75.258 |
102.414 |
127.100 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
3.169
|
3.220 |
7.100 |
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Sundry Debtors |
3.240
|
2.160 |
3.000 |
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Cash & Bank Balances |
0.326
|
0.889 |
1.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
4.979
|
4.039 |
6.700 |
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Total
Current Assets |
11.714
|
10.308 |
18.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
44.738
|
39.233 |
168.200 |
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Provisions |
0.679
|
0.497 |
0.400 |
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Total
Current Liabilities |
45.417
|
39.730 |
168.600 |
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Net Current Assets |
[33.703]
|
[29.422] |
[150.200] |
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MISCELLANEOUS EXPENSES |
0.009 |
0.020 |
0.000 |
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TOTAL |
41.564 |
73.012 |
[23.100] |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
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Sales Turnover |
35.890 |
63.273 |
62.000 |
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Other Income |
0.467 |
1.623 |
3.500 |
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Total Income |
36.357 |
64.896 |
65.500 |
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Profit/(Loss) Before Tax |
[106.024] |
[92.545] |
[74.700] |
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Provision for Taxation |
-- |
-- |
0.000 |
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Profit/(Loss) After Tax |
[106.024] |
[92.545] |
[74.700] |
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Earnings in Foreign Currency : |
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Total Earnings |
-- |
6.035 |
-- |
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Expenditures : |
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Cost of Goods Sold |
4.251 |
23.212 |
31.900 |
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Manufacturing Expenses |
21.552 |
25.129 |
8.200 |
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Personal Cost |
7.620 |
7.514 |
6.700 |
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Power and Fuel Cost |
0.000 |
0.000 |
12.900 |
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Directors Remuneration |
0.060 |
0.144 |
0.000 |
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Selling and Administrative Expenses |
3.732 |
5.452 |
3.400 |
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Financial Charges |
78.822 |
64.186 |
79.800 |
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Depreciation & Amortization |
26.148 |
26.057 |
24.800 |
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Preliminary Expenses written off |
0.010 |
0.010 |
2.500 |
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Loss on sale of Assets |
0.015 |
0.025 |
0.000 |
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Total Expenditure |
142.210 |
151.729 |
170.200 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
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PAT / Total Income |
(%) |
[291.62]
|
[142.61] |
[114.05] |
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Net Profit Margin (PBT/Sales) |
(%) |
[295.41]
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[146.26] |
[120.48] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[121.91]
|
[82.10] |
[51.34] |
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Return on Investment (ROI) (PBT/Networth) |
|
[0.27]
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[0.32] |
[0.38] |
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Debt Equity Ratio (Total Liability/Networth) |
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[1.22]
|
[1.39] |
[1.74] |
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Current Ratio (Current Asset/Current Liability) |
|
0.26
|
0.26 |
0.11 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land and
Development
- Plant and
Machinery
- Office
Equipment
- Motor
Vehicles
- Furniture and
Fixture
- Lab
Equipments
Bankers Charges
Report as per Registry
|
Name of the company |
RAMA QUALITEX
LIMITED |
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Presented By |
L. R. NEELAKANTA,
COMPANY SECRETARY, RAMA QUALITEX LIMITED |
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1) Date and description of instrument creating the change |
Date : 30.11.1994 General letter of
Hypothecation. Hypothecation agreement for L.C. / Guarantee Limits – “K.
Special” - Agreement for
C. C. – Hypothecation of Goods – “Form K” – Letter of Undertaking – Not to
create further charge. [All agreements
pertain to the same charge] |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 30.000
Millions [EPC – Rs. 20.000
Millions – Bill Limit Rs. 7.500 Millions sublimit of EPC L. C. Rs. 7.000
Millions BG – Rs. 3.000 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 |
The whole of the
Borrower’s stocks of goods, produce and merchandise viz Raw Materials like
yarn, semi finished goods and finished goods like grey clothes and all
articles manufactured therefrom which now or hereafter from time to time
during this security shall be brought into stored dispatched or be in or
about the Borrower’s godowns, shop, showrooms or premises or wherever else
the same maybe by way of first charge. All the borrower’s present and future
book debts outstanding money’s, receivables claims, bills, contracts,
engagements, securities investment rights and assets by way of first
charge. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
: 2 % below SBAR with a minimum of 13 % p.a. with quarterly rest Margin : LC/BG –
10 % The company has
undertaken not to create further charge on their assets including uncalled
capital without obtaining prior consent in writing from the bank, Stocks are
charged the extent of Rs. 30.000 Millions and Book debts are charged to
Rs.7.500 Millions |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Industrial
Finance Branch, Residency Road, |
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6) Date and brief description of instrument modifying the charge |
26.03.1997 No
instrument has executed. A joint mortgage by deposit of title deeds by way of
extension was created by the company on second charge basis in favour of SBI
with the IDBI, IDBI acting for itself and as an agent for IFCI and also for
SBI in respect of all immovable properties of the company situated at No.
66/2, Mugalapalli Village, Hosur Taluk, Tamilnadu for its working capital
assistance aggregating Rs. 50.500 Millions under its loan agreement dated
06.11.1996. |
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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. |
Agreement for cash
credit and deed of hypothecation date 30.11.1994 as modified on 05.01.1996,
19.06.1996, 08.07.1996 and 06.11.1996 is further secured by a joint mortgage
by deposit of title deeds by way of extension on second charge basis in
respect of all immovable properties of the company situated at No. 66/1, |
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This form is for |
Creation of
Charge |
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Corporate
identity number of the company |
U17111TZ1985PLC006729 |
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Name of the
company |
RAMA QUALITEX LIMITED |
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Address of the
registered office or of the principal place of business in |
S. No. 66/2, |
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Type of charge |
|
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Particular of
charge holder |
Union Bank of Industrial
Finance Branch Chandra Kiran, 1st
Floor, No. 10/A, |
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Nature of
description of the instrument creating or modifying the charge |
All document relate to single charge |
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Date of
instrument Creating the charge |
28.02.2007 |
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Amount secured by
the charge |
Rs. 74.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: Interest at 15 %
[i.e. BPLR + 2.50 %] Term of Repayment
: On Demand Margin : Margin 25 % Extent and
Operation of the charge : Hypothecation
charge over entire current assets, plant and machineries and mortgage charge
company’s immovable properties. Including
Land, Building, structures etc |
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Short particulars
of the property charged |
Hypothecation of
fully paid and insured RMs, WIP, FGs, consumables etc and receivables not more
than 90 days / Hypothecation of plant and machineries, office equipments, etc
belonging to the company both present and future. Equitable mortgage created
by deposit of title deeds on company’s immovable properties at a] S. No.
66/1E, dry extent 0.80.0 hectare, S. No. 66/1D, dry extent 0.96.0 hectare, S.
No. 66/2, dry extent 1.65.0 hectare in Tamilnadu. |
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.40.75 |
|
|
1 |
Rs.81.17 |
|
Euro |
1 |
Rs.54.59 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
- |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
6 |
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 |
|