MIRA
INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
HARSHNI TEXTILES LIMITED |
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Registered Office : |
34 Akamaraj Road, Coimbatore – 641018, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.10.2003 |
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Com. Reg. No.: |
010786 |
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CIN No.: [Company
Identification No.] |
U17111TZ2003PLC010786 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBH03221B |
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PAN No.: [Permanent
Account No.] |
AABCH4375F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Cotton Yarn |
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 550000 |
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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 : |
34 Akamaraj Road, Coimbatore – 641018, Tamilnadu |
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Website : |
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Office : |
504, Avinashi Road, Coimbatore – 641004, Tamilnadu |
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Tel. No.: |
91-422-2565201/206 |
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Fax No.: |
91-422-2565207/2567312 |
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E-Mail : |
harshnitextilesmarketing@touchtelindia.net,
harshnitextilessales@touchtelindia.net |
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Factory 1 : |
504, Avinashi Road, Coimbatore – 641004, Tamilnadu |
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Tel. No.: |
91-422-2565201/206 |
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Fax No.: |
91-422-2565207/2567312 |
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E-Mail : |
harshnitextilesmarketing@touchtelindia.net,
harshnitextilessales@touchtelindia.net |
DIRECTORS
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Name : |
Mr. D Senthil Kumar |
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Designation : |
Director |
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Name : |
Mr. Nethra J S Kumar |
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Designation : |
Director |
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Name : |
Mr. R C H Reddy |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cotton Yarn |
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Products : |
v Weaving
cotton yarn v Knitting
Cotton Yarn |
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Exports : |
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Countries : |
Germany, Belgium, Portugal, Hong Kong, Bangladesh, Italy, Spain,
Korea, Singapore and Dubai |
GENERAL INFORMATION
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No. of Employees: |
About 200 |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Auditors : |
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Name : |
M/s. S Krishnamoorthy & Company Chartered Accountant |
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Memberships : |
Nil |
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Collaborators : |
Nil |
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Associates/Subsidiaries : |
Lakshmi Machine works |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 100.000
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 |
100.000 |
100.000 |
100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
37.100 |
16.200 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
(5.600) |
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NETWORTH |
137.100 |
116.200 |
94.400 |
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LOAN FUNDS |
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1] Secured Loans |
234.800 |
108.300 |
0.000 |
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2] Unsecured Loans |
99.500 |
82.800 |
60.000 |
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TOTAL BORROWING |
334.300 |
191.100 |
60.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
471.400 |
307.300 |
154.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
267.300 |
191.300 |
139.400 |
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Capital work-in-progress |
1.200 |
0.100 |
0.000 |
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INVESTMENT |
0.700 |
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 |
155.700
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109.400 |
5.900 |
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Sundry Debtors |
35.700
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25.500 |
0.000 |
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Cash & Bank Balances |
6.500
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6.500 |
9.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
46.400
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21.300 |
10.200 |
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Total
Current Assets |
244.300
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162.700 |
25.300 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
38.300
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44.600 |
10.300 |
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Provisions |
3.800
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2.200 |
0.000 |
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Total
Current Liabilities |
42.100
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46.800 |
10.300 |
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Net Current Assets |
202.200
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115.900 |
15.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
471.400 |
307.300 |
154.400 |
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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 |
341.500 |
281.100 |
0.000 |
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Other Income |
9.300 |
32.300 |
0.400 |
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Total Income |
350.800 |
313.400 |
0.400 |
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Profit/(Loss) Before Tax |
32.500 |
25.700 |
(1.200) |
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Provision for Taxation |
11.600 |
3.900 |
4.400 |
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Profit/(Loss) After Tax |
20.900 |
21.800 |
(5.600) |
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Expenditures : |
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Manufacturing Expenses |
29.700 |
21.600 |
0.000 |
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Administrative Expenses |
11.300 |
7.200 |
0.700 |
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Raw Material Consumed |
156.500 |
162.600 |
0.000 |
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Salaries, Wages, Bonus, etc. |
20.500 |
15.700 |
0.000 |
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Interest |
17.900 |
13.400 |
0.000 |
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Power & Fuel |
62.700 |
54.100 |
0.000 |
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Depreciation & Amortization |
19.700 |
13.100 |
0.000 |
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Total Expenditure |
318.300 |
287.700 |
0.700 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
2.07 |
1.19 |
0.63 |
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Long Term Debt-Equity Ratio |
0.59 |
0.20 |
0.00 |
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Current Ratio |
0.87 |
0.70 |
0.37 |
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TURNOVER RATIOS |
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Fixed Assets |
1.35 |
1.63 |
0.00 |
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Inventory |
2.58 |
4.88 |
0.00 |
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Debtors |
11.16 |
22.05 |
0.00 |
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Interest Cover Ratio |
2.82 |
2.32 |
0.00 |
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Operating Profit Margin(%) |
20.53 |
15.72 |
0.00 |
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Profit Before Interest And Tax Margin(%) |
14.76 |
11.06 |
0.00 |
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Cash Profit Margin(%) |
11.89 |
10.00 |
0.00 |
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Adjusted Net Profit Margin(%) |
6.12 |
5.34 |
0.00 |
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Return On Capital Employed(%) |
12.94 |
13.47 |
0.00 |
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Return On Net Worth(%) |
16.50 |
14.25 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
Performance and
Prospects:
The company has made a turnover of Rs.341.483 Millions against previous year Rs.281.138 Millions and earned a net profit of Rs. 32.428 Millions against previous year Rs.25.693 Millions before tax. The prevailing market condition in textiles sector is quite supportive in all ways and it is expected that the favorable condition will continue in the coming year also.
Expiration of MFA (Multi Fibre Agreement) and removal of quotas has thrown a
lot of opportunities and challenges to the textile industry. The company is
gearing up to take full advantage of the situation.
In view of the favourable market conditions prevailing in the textile industry,
their company is expected to continue the last year's performance trend during
the current financial year also.
As per
website details
Profile
Harshni Textiles Limited. Promoted during the year 1996 with a spindle capacity of 11,000 belongs to Lakshmi Machine works Group of companies. The Mill has the state of art machineries to produce superior quality yarn complying with Uster 5% standard levels. They have the testing equipment capable of testing the raw material cotton as well as the finished product yarn. All the autoconers in the mills are fitted with Siro electronic yarn-clearers and Blow room line are equipped with vision shield,hence colour contamination guarantee could be given. In the process of continuous modernisation they have added Compact Spinning Machine to the unit with a total spindle capacity of 25000.
They could give their yarn in pallet packing also to comply with Euro standards.
They do supply cotton yarn from one of their Associate Mill Tamilnadu Jai Bharath Mills with a spindle capacity of 39312 meant for Domestic and Export Markets.
Product
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Weaving cotton yarn : |
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Combed Counts |
: Single Yarn - Ne 40s To Ne 60s |
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: Double Yarn - Ne 40/2 To Ne 60/2 |
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Compact Spinning |
: Single yarn - Ne 40/1 To Ne 60/1s |
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Knitting Cotton Yarn : |
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Combed Counts |
: Single Yarn - Ne 40s To Ne 60s |
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: Double Yarn - Ne 40/2 To Ne 60/2 |
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Special Product |
: They do supply yarn wound on Plastic Perforated |
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Cones and cylindrical Tubes suitable For Direct Dyeing. |
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 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.70 |
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UK Pound |
1 |
Rs.85.90 |
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Euro |
1 |
Rs.58.25 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
3 |
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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 |
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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43 |
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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