MIRA
INFORM REPORT
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Report Date : |
02.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
ARUNA FASHION EXPORTS |
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Registered Office : |
No. 2/16, Giri Nagar, Ramapuram, Chennai – 600089, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1993 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA02052B |
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Legal Form : |
Partnership Concern with an unlimited liability of the partners |
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Line of Business : |
Manufacturer and Exporter of high quality woven garments, fashion
fabrics. |
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 25000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Management of the concern remained non-cooperative during current
investigation. Hence, this report is based on indirect sources of information. Subject is an established concern having sales turnover of Rs. 35.000
millions. Group turnover can be Rs. 70.000 millions. Business is steady.
Trade relations are fair. Payments are usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
No. 2/16, Giri Nagar, Ramapuram, Chennai – 600089, Tamilnadu |
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Tel. No.: |
91-44-22493985/ 22492648 |
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Mobile No.: |
91-44-22491854 |
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E-Mail : |
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Website : |
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Area : |
Owned Buildings |
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Head Office : |
"Aruna Building", 2/16,
Giri Nagar, Ramapuram, Chennai - 600 089. India. |
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Tel. No.: |
91 - 44 - 2249 3985 / 2249 2648 |
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Fax No.: |
91 - 44 - 2249 1854 |
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E-Mail : |
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Factory 1 : |
2/16, Giri Nagar, Ramapuram, Chennai- 600 089, India |
PARTNERS
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Name : |
Mr. R. Arunachalam |
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Designation : |
Managing Partner |
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Name : |
Mr. Balasubramaniam |
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Designation : |
Partner |
KEY EXECUTIVES
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Name : |
Mr. R.
Arunachalam |
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Designation : |
Chief
Executive |
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Mobile No. : |
91-9444369006 |
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Name : |
Mr.
M. Haridoss |
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Designation : |
General
Manager - Customer Relations |
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Mobile No. : |
91-9444368993 |
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Name : |
Mr.
B. Karunakaran |
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Designation : |
Manager-
Compliance |
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Mobile No. : |
91-9840664833 |
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Name : |
Mr.
G. Chidambaram |
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Designation : |
Export
Manager |
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Mobile No. : |
91-9444369994 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of high quality woven garments, fashion
fabrics. |
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Products : |
v Quality Woven
Garments (ladies, men and children mostly shirts for men). v Fashion Fabrics.
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Exports : |
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Products : |
Woven Garments and Fashion Fabric |
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Countries : |
Italy, Finland, Colombia, USA, etc. |
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Imports : |
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Products : |
Machines And Other Machinery Used In The Garments Industry |
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Countries : |
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GENERAL
INFORMATION
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No. of Employees : |
125 |
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Bankers : |
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Facilities : |
The concern is reported to enjoy some facilities from its bankers. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Not Available |
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Associates/Subsidiaries : |
Aruna Creation 5/2, Santhosh Nagar, Ramapuram, Chennai- 600 089, India Line of Business: Same Activity |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 7.000 millions |
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Borrowed : |
0.000 |
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Total : |
Rs. 7.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2006 |
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Sales Turnover |
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30.000 |
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Export Value |
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30.000 |
GROUP SALES: Rs. 700.000 millions
LOCAL AGENCY
FURTHER INFORMATION
The concern imports sewing machines and other machinery used in the
garments industry. In cartain cases, if they are making shirts for a company in
Colombia the company itself provides the accessories like buttons, zippers,
etc.
Subject employs around 125 persons in its set up comprising of 10
persons in office and 115 persons in factory.
WEBSITE DETAILS
ATTACHED:
Aruna
Group was founded
in the year 1972 by the brothers R.Balasubramanian and R.Arunachalam. Hailing
from a small village in Tamil Nadu they have built the Rs.250 Millions (US$ 5.5
mn) Aruna Group within a span of 30 yrs.
Initially
starting as paper dealers for paper mills they ventured into manufacturing
corrugated boxes in 1982. During the tenure of this business, they supplied
export cartons to various leading garment exporters of that time. This sparked
the idea of starting a Garment Manufacturing unit and thus began ARUNA
FASHION EXPORTS in 1993. Since then there has been no looking back for
the Aruna Group. In order to expand the manufacturing capacity and customer
base a second unit - Aruna Creation was started during 1996. Both the companies
have been continuously evolving and now employs about 500 employees - all of
them working as a family.
In order
to cater to the knitted garments industry "Aruna Apparels"
was started at Tiruppur during January 2005.
The
entire Aruna Group is socially responsible and complies with various
requirements in terms of workers safety, child labour, forced labour, minimum
wages and other labour welfare measures.
At
present, in the Textile Trade, Aruna Group caters to Fabric and Ready Made
woven and knitted garments. They are in constant endeavor to explore new
markets and products and seek the valuable support towards fulfilling their
mission.
INFRASTRUCTURE:
They have a strong infrastructure to which they owe their
success in delivering quality products in a timely manner and their production
resources include: 250 numbers Japanese High Speed Brother and Juki Sewing
Machines with all necessary attachments and Supporting Equipments with a
production capacity of 50,000 pieces per month.
COMPLIANCE:
Their
Company is socially responsible and is taking all necessary steps to constantly
improve the working standards of their factories and employees. Their
production facilities have been audited and accepted for compliance of code of
conduct by leading buyers in USA and Europe.
Their company has written and documented policies on the following:
1. Child Labour
2. Forced Labour
3. Discrimination
4. Disciplinary Practices
5. Freedom of Association
6. Health and Safety
Their employees
are given periodical training on Fire Fighting, First Aid and Emergency
evacuations skills other than the courses on skill up gradation, personal
hygiene and various other topics.
Various
committees have been constituted by the employee representatives in order to
safe guard the interests of their employees.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions between
a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.28 |
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UK Pound |
1 |
Rs.86.62 |
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Euro |
1 |
Rs.58.32 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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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 |
NO |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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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 |
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>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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<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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PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions