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MIRA
INFORM REPORT
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Report Date : |
24.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SCM TEXTILES SPINNERS (DIV OF TCS TEXTILES PRIVATE LIMITED) |
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Registered Office : |
68, College Road, Tirupur, Tamilnadu – 641602 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.02.1995 |
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Com. Reg. No.: |
18-5857 |
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CIN No.: [Company
Identification No.] |
U17111TZ1995PTC005857 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS06393C CMBT04122G CMBT04487A |
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PAN No.: [Permanent
Account No.] |
AABCT7921K |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing and Exporting of Cotton Yarn, 100% Cotton Fabric,
Knitted Fabric and Garments. |
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 300000 |
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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 : |
68, Collage Road, Tirupur, Tamilnadu – 641602. |
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Tel. No.: |
91-421-2242888 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. T K Chandiran |
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Designation : |
Chairman |
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Address : |
Sree Guru Kiran Illam, 11 Kalidass Road, Ramnagar Coimbatore,
Tamilnadu – 641009 |
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Date of Birth/Age : |
09.05.1953 |
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Date of Appointment : |
24.02.1995 |
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Name : |
Mr. K Manickam |
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Designation : |
Managing Director |
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Address : |
Sree Ambaal Kiruba Illam, 2/5 Desabanth Street, Ramnagar, Coimbatore,
Tamilnadu – 641009 |
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Date of Birth/Age : |
31.12.1955 |
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Date of Appointment : |
24.02.1995 |
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Name : |
Mr. K Sivalingam |
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Designation : |
Managing Director |
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Address : |
Sri Ram Kiruba Illam Bangala Road, Ootakkadu, Tirupur, Coimbatore,
Tamilnadu - 641602 |
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Date of Birth/Age : |
29.04.1957 |
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Date of Appointment : |
24.02.1995 |
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Name : |
Mr. K Aroomukam |
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Designation : |
Whole Time Director |
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Address : |
32/34, K. V. P. Layout Alankadu, Tirupur, Coimbatore, Tamilnadu –
641604 |
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Date of Birth/Age : |
06.05.1960 |
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Date of Appointment : |
24.02.1995 |
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Name : |
Mr. K Vinayakam |
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Designation : |
Whole Time Director |
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Address : |
52, Krishna Takies Road, Erode, Tamilnadu – 638003 |
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Date of Birth/Age : |
04.10.1962 |
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Date of Appointment : |
24.02.1995 |
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Name : |
Mr. N K Nandagopal |
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Designation : |
Whole Time Director |
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Address : |
Sree Gokulam Illam, No. 40 Bangala Road, Ootakkadu, Tirupur CBE,
Tamilnadu -641602 |
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Date of Birth/Age : |
30.04.1964 |
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Date of Appointment : |
24.02.0995 |
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Name : |
Mr. P P K Paramasivam |
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Designation : |
Whole Time Director |
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Address : |
97, Karunampalayam Privu, ABT Road, First Street, Tirupur, Coimbatore,
Tamilnadu - 641604 |
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Date of Birth/Age : |
12.12.1968 |
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Date of Appointment : |
24.02.95 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Directors or Relatives of Directors |
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100 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of Cotton Yarn, 100% Cotton Fabric Knitted
Fabric and Garments. |
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Products : |
Cotton Yarn, 100 % Cotton Fabric, Knitted Fabric and Garments. |
GENERAL
INFORMATION
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No. of Employees : |
About 1000 |
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Bankers : |
State Bank OF Patiyala 30, White Road, Whites Road Branch, Chennai – 600014 State Bank Of India Overseas Branch,13 M S Puram, Titupur – 641601. Tamilnadu. Oriental Bank Of Commerce 1057, Jaya Enclave, Avanashi Road, Coimbatore – 641018. Tamilnadu |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
R Rajan Associates |
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Name : |
Mr. R Rajan |
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Address : |
160/22, Srinivasa Trade Cement, II Floor, D.B. Road, R.S. Puram,
Coimbatore. Tamilnadu – 641002. |
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Associates : |
Sree Kumaran Thangamaligai Gold Ornaments & Silve Vessels with latest fashions/ design. Showrooms : Chennai, Coimbatore, Erode, Tirupur and Trichy Shop online at http://www.sreekumaranthangamaligai.com SCM Creations Garment’s for Domestic and International Markets. Tirupur Visit at : http://www.scmgroups.com SCM Texttile Proccessing Mills For both Woven/ Knit Fabric Erodw Visit at : http://www.scmtpm.in The Chennai Silk All kind of Fabrics/Radymade Garment Suit for all Showrooms : Chennai, Coimbatore, Erode, Tirupur, and Trichy. Shop online at : http://ww.thechennaisilks.com |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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70,000,000 |
Equity Share |
Rs. 10/- each |
Rs.700.000 Millions |
Issued, Subscribed & Paid-up Capital :s
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No. of Shares |
Type |
Value |
Amount |
|
69,837,500 |
Equity Share |
Rs.10/- each |
Rs.698.375
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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698.375 |
635.375 |
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2] Share Application Money |
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0.000 |
17.023 |
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3] Reserves & Surplus |
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83.500 |
154.757 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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781.875 |
807.155 |
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LOAN FUNDS |
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1] Secured Loans |
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1287.853 |
736.160 |
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2] Unsecured Loans |
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32.500 |
0.030 |
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TOTAL BORROWING |
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1320.353 |
736.190 |
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DEFERRED TAX LIABILITIES |
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65.100 |
70.081 |
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TOTAL |
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2167.328 |
1613.426 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1507.293 |
1345.044 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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21.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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520.297 |
456.501 |
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Sundry Debtors |
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122.134 |
56.765 |
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Cash & Bank Balances |
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19.092 |
18.658 |
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Other Current Assets |
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48.182 |
58.388 |
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Loans & Advances |
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69.373 |
3.624 |
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Total
Current Assets |
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779.078 |
593.936 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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140.043 |
314.096 |
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Provisions |
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0.000 |
11.458 |
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Total
Current Liabilities |
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140.043 |
325.554 |
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Net Current Assets |
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639.035 |
268.382 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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2167.328 |
1613.426 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
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-- |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
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-- |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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-- |
-- |
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Return on Investment (ROI) (PBT/Networth) |
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-- |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
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1.86 |
1.31 |
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Current Ratio (Current Asset/Current Liability) |
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5.56 |
1.82 |
LOCAL AGENCY
FURTHER INFORMATION
As per Website Details
SCM Textile Spinners, an emerging Industry is a conglomerate of TCS
TEXTILES PVT.LTD, which is one of the largest Textile group in south India. The
group prides itself as one of the most effective management systems in textile
industry that extends its wings from Manufacturing of Yarns, Knitting, Weaving,
Processing and Selling of garments, fabric through retail outlets.
Situated near Coimbatore, Manchester of South India, the SCM Textile
Spinners was launched in the year of 2003, has made a distinct mark with state
of the art highly Stream lined machineries that help it to manufacture 100%
combed cotton yarn of both single / doubled (Twisted). Confirming the highest
standards with respect to uster Evenness, Naps and Classmate faults that
translates to an exceptionally consistent Quality with an installed spindle
capacity of 52,800.
SCM Textile Spinners has proposed for an expansion of another 52, 800
Spindles by 2007.
In addition it has also proposal for additional 6,000 Spindles of
Compact Spinning "SUSSEN" and also OE Plant
SCM Textile Spinners has got ISO 9001:2000 Certification and has
launched own brand "MADRAS YARN" for its products.
Company Profile
Their successful mission is sailed with professionally experienced and
dedicated staff members working around the clock conforming complete assurance
for the highly personalized services coupled with trust and value. The
management's ethics and constant efforts for development make it stand tall in
taking up bulk projects and completing them in the given time frame. What
matters the most is the values, commitments, honesty, responsibility, truly and
a straightforward business in approach.
Their voyage to the ultimate Customer satisfaction through total quality
control is propelled by their group of companies which brings the entire
manufacturing process from yarn to the finished fabric under a single roof.
Their group of companies, which are, located in and around the knit city
enables the mass production with apex quality standard in the specified time
limit.
To add to their excellence in manufacturing all their units are ISO certifies
for its ECO FRIENDLY in processing ISO - 14001 and Total quality management
system ISO 9001.
Production
A lighted team sprit of their staffs guided with apt scientific approach
in production makes us successful suppliers committed in mass production with
timely distribution. They are manufacturing Auto coned SIRO cleared cotton
yarns from counts Ne 30's to Ne 100's for Warp and Hosiery applications with sophisticated
machineries from Lakshmi, Muratec, Schalfrost and ELGI yarn conditioning.
To add to its perfection they have installed a high capacity Yarn Conditioning
Machine to compete with international standards.
SCM Textile Spinners, part of the Rs 500-crore flagship company TCS Textiles Pvt Ltd, is promoting the cotton yarn brand, `Madras Yarn,' using the group's blue peacock logo. (The logo represents the quality standards for 100 per cent cotton yarns.)
The company had launched the yarn brand at its Avinashi plant. "They'll initially associate the `Madras Yarn' brand with the 60s count yarn for the woven sector and they will focus on the export market," said Mr K. Vinayakam, Executive Director of SCM Textile Spinners.
Mr Vinayakam said that unlike the textile mills, which are centred on specific count yarns ( brands are named after such mills), his textile unit currently produces yarns ranging from the 30s count to the 100s count. Thus branding is needed to distinguish the quality elements that go into the manufacture of yarns. Weavers, especially those producing shirting fabrics with finer count yarns, are concerned about the quality standards of the yarns they purchase. Thus, branding of yarn will bring about quality assurance and timely supplies.
The branding exercise is part of TCS group's expansion of textile manufacturing operations at SCM Textile Spinners and its garment company, SCM Creations (to be shortly renamed as SCM Garments Pvt Ltd). While the group is expanding SCM Textile Spinners' production capacity by doubling the spindl age from the present 52,800 to 1.05 lakh at a cost of Rs 100 crore, it is planning a massive capacity addition at its garment unit.
SCM Textile Spinners' yarn production is to go up to 35 tones a day after the expansion by 2007. It has also proposed to induct a compact spinning facility for 6,000 spindles, which will enable the company to increase the manufacture of value-added yarns whose share in total yarn production will go up to 30 per cent, Mr Vinayakam said.
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Name of the Company |
TCS TEXTILESS PRIVATE LIMITED |
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Presented By |
TCS Textiles Private Limited (herein after
called “The borrower”) & State Bank of Patiala, Whites Road Branch,
Chennai – 600014. |
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1. Date and description of the instrumental
creating the charge |
14.02.2005 a.
Agreement of Hypothecation of goods and Assets in Form C.2. B.
Letter regarding the grant of individual limits within the Overall
Limit in Form C.5 Both dated 14.02.2005 and related to one and
the same charge. |
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2) Amount secured by the charge/amount owning on
security of the charge |
Rs. 160.000 Millions Together with interest, costs, charges and
other expenses which may accrue and be debited to the account from time to
time. Facility
: Term Loan |
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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 |
Whole of the Company’s Current Assets
consisting of cotton, semi-finished goods, finished goods and other current
assets of spinning unit of the
Company and all present and future goods, book-debts and all other movable
assets of the goods, outstanding moneys, receivables including receivables by
way cash assistance and or cash incentives under the Cash Incentive Scheme or
any other scheme claim including claim by way of refund of customs/excise
duties under the Duty Drawback Credit Scheme or any other Scheme or Bills,
Invoices Documents, Contracts, Insurance, Policies, Guarantee, Engagements,
Securities, Investments and rights and the present machinery and all future
machinery belonging to or in the possession or under the control of the
Borrower wherever lying store and kept and wherrther in possession or the
Borrower or the Bank or of any third party whether in India or elsewhere
throughout the world/ (including all such goods, other movable assets as may
be in course of shipment transit or delivery) (hereinafter referred to as
“the said goods and assets”) shall stand hypothecated to the Bank, as
security, by way of first charge on Pari Passu basis with State Bank of
India, Overseas Branch,, |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
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5) Name and Address and description of the person entitled to the
charge. |
State Bank Of Patiala 30, White Road, Whites Road Branch, Chennai
– 600014 |
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6) Date and brief description
of instrument modifying the charge |
Nil |
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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. |
Nil |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.47 |
|
UK Pound |
1 |
Rs.85.36 |
|
Euro |
1 |
Rs.57.89 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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 |
|