MIRA
INFORM REPORT
|
Report Date : |
29.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
AMARAVATHI SRI VENKATESA PAPER MILLS LIMITED |
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Registered Office : |
Nithya Nilayam Venkatesa Mills Post, Udamalpet – 642128, Coimbatore,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.01.1960 |
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Com. Reg. No.: |
18-000341 |
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CIN No.: [Company
Identification No.] |
U21012TZ1960PLC000341 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBA03050F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing of Printing and Writing Paper |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 480000 |
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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 : |
Nithya Nilayam Venkatesa Mills Post, Udamalpet – 642128, Coimbatore,
Tamilnadu |
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Tel. No.: |
91-4252-252286 / 252287/252386 |
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Fax No.: |
91-4252-252288 |
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E-Mail : |
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Website : |
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Mills & Administrative Office |
Palani Road, Madathukulam – 642 113, Coimbatore |
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Branches : |
Located at : v D. No. 2-3-64/8,
Tirumala Nagar Colony, Amberpet, Hyderabad – 500 013, Andhra Pradesh v 7-3-10, Raghava
Reddy Road, Behind K. B. H. College, Mahantipuram, Vijayawada – 520 001,
Andhra Pradesh v 82/3, Seniamman,
Koil Street, Tondayarpet, Chennai – 600 081, Tamilnadu |
DIRECTORS
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Name : |
Mr. G S Rambabu |
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Designation : |
Director |
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Address : |
36, Mahal Vadampokki, Madurai, Tamilnadu |
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Date of Birth/Age : |
27.07.1962 |
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Date of Appointment : |
23.12.1989 |
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Name : |
Mr. K. Shree Hari |
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Designation : |
Director |
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Address : |
A 14, Venkatachalam Street, Gandhi Nagar,
Coimbatore – 642 154 |
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Date of Birth/Age : |
22.07.1972 |
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Date of Appointment : |
27.06.2001 |
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Name : |
Dr. V. Genguswamy |
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Designation : |
Managing Director |
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Address : |
Venkatesa Nilayam, Venkatesa Mills Post,
Udumalpet – 642 128, Tamilnadu |
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Date of Birth/Age : |
04.10.1931 |
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Date of Appointment : |
04.01.1960 |
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Name : |
Mrs. G. Rajalakshmi |
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Designation : |
Director |
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Address : |
Venkatesa Nilayam, Venkatesa Mills Post,
Udumalpet – 642 128, Tamilnadu |
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Date of Birth/Age : |
05.11.1934 |
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Date of Appointment : |
04.01.1960 |
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Name : |
Mr. G. Raveendran |
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Designation : |
Director |
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Address : |
Venkatesa Nilayam, Venkatesa Mills Post,
Udumalpet – 642 128, Tamilnadu |
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Date of Birth/Age : |
17.01.1959 |
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Date of Appointment : |
31.03.1984 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders (30.09.2004) |
No. of Shares |
|
M/s. Bennett Coleman & Company Limited |
224454 |
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M/s. Cholamandalam Investment & Finance Company Limited |
363272 |
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Mr. Genguswamy V |
842192 |
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M/s. Indbank Merchant Banking Services Limited |
589090 |
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Ms. Meenakshi E |
20454 |
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Ms. Nandini R |
29183 |
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Ms. Nivedita N |
28620 |
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Mr. Rajalakshmi G |
524576 |
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Ms. Rajalakshmi G |
87954 |
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Mr. Raveendranathan G |
150426 |
31.03.2006
Bodies Corporate – 39.20%
Directors or relatives of director – 56.50%
Other top fifty shareholders – 4.30%
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Printing and Writing Paper |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
400 |
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Bankers : |
Indian Bank, 245, Pollachi Road, Udumalpet – 642 126, Coimbatore,
Tamilnadu |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. S. Jagannathan & Visvanathan Chartered Accountants |
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Address : |
6 DB Road, R S Puram, Coimbatore – 641002, Tamilnadu |
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Associates/Subsidiaries : |
v Rajalakshmi
Paper Mills Limited v Vishnuvardhan
Paper Mills Private Limited v V G Paper and
Boards Limited v The Sri
Venkatesa Mills Limited v V G Textiles
Private Limited v Amaravathi
Investment Limited v Nithya Finance
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3050000 |
Equity Shares |
Rs.10/- each |
Rs. 30.500
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3007493 |
Equity Shares |
Rs.10/- each |
Rs. 30.075
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
30.075 |
30.075 |
30.075 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
92.108 |
67.808 |
51.453 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
122.183 |
97.883 |
81.528 |
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LOAN FUNDS |
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1] Secured Loans |
48.447 |
48.675 |
69.655 |
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2] Unsecured Loans |
6.971 |
6.858 |
6.353 |
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TOTAL BORROWING |
55.418 |
55.533 |
76.008 |
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DEFERRED TAX LIABILITIES |
28.627 |
26.060 |
27.374 |
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TOTAL |
206.228 |
179.476 |
184.910 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
137.041 |
110.711 |
120.616 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
8.182 |
8.182 |
8.182 |
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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 |
76.777
|
62.210 |
90.406 |
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Sundry Debtors |
71.611
|
76.148 |
56.709 |
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Cash & Bank Balances |
10.339
|
8.021 |
7.755 |
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Other Current Assets |
3.225
|
2.852 |
1.621 |
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Loans & Advances |
47.739
|
34.536 |
28.287 |
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Total
Current Assets |
209.691
|
183.767 |
184.778 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
120.130
|
99.668 |
115.401 |
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Provisions |
28.556
|
23.516 |
13.265 |
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Total
Current Liabilities |
148.686
|
123.184 |
128.666 |
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Net Current Assets |
61.005
|
60.583 |
56.112 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
206.228 |
179.476 |
184.910 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
744.238 |
600.110 |
509.980 |
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Other Income |
15.589 |
9.275 |
5.085 |
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Total Income |
759.827 |
609.385 |
515.065 |
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Profit/(Loss) Before Tax |
47.957 |
27.827 |
7.314 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
47.957 |
27.827 |
7.314 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
56.675 |
40.019 |
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Total Earnings |
NA |
56.675 |
40.019 |
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Imports : |
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Raw Materials |
NA |
100.766 |
79.553 |
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Stores & Spares |
NA |
0.923 |
0.243 |
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Capital Goods |
NA |
0.192 |
0.000 |
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Total Imports |
NA |
101.881 |
79.796 |
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Expenditures : |
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Raw Material Consumed |
396.401 |
297.538 |
279.227 |
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Consumption of stores and spares parts |
72.223 |
53.416 |
53.101 |
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Increase/(Decrease) in Finished Goods |
16.149 |
25.983 |
7.149 |
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Salaries, Wages, Bonus, etc. |
26.028 |
24.378 |
28.642 |
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Payment to Auditors |
0.116 |
0.068 |
25.280 |
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Interest |
6.662 |
9.997 |
13.473 |
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Insurance Expenses |
2.007 |
1.607 |
12.426 |
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Power & Fuel |
96.097 |
78.172 |
96.854 |
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Depreciation & Amortization |
11.983 |
9.730 |
10.176 |
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Other Expenditure |
84.204 |
80.669 |
0.000 |
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Total Expenditure |
711.870 |
581.558 |
526.328 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
6.31
|
4.56 |
1.42 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.31
|
4.56 |
1.42 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
13.83
|
9.44 |
2.39 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.28 |
0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.67
|
1.82 |
2.51 |
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Current Ratio (Current Asset/Current Liability) |
|
1.41
|
1.49 |
1.43 |
LOCAL AGENCY
FURTHER INFORMATION
|
Contingent
Liabilities |
31.03.2005
(Rs. In Millions) |
|
Bills discounted with banks |
1.081 |
|
Letter of credit in force |
31.128 |
The company’s fixed assets of important value include land, buildings,
machinery, electric machinery, tools & plant, computer, furniture &
office equipment, motor vehicles, live stock and wind mill.
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Corporate
identity number (CIN) Foreign company registration number |
U21012TZ1960PLC000341 |
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Name of the
Company |
AMARAVATHI SRI VENKATESA PAPER MILLS LIMITED |
|
Address |
Nithya Nilayam Venkatesa Mills Post, Udamalpet – 642128, Tmailnadu |
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This form is for |
Modification
Charge |
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Type of Charge |
Equitable
mortgage of property by depositing on the titles deeds |
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Particulars of
the charge holder |
Canara Bank,
Vakil Nagarajan Street, Udamalpet, Coimbatore – 642126 |
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Amount secured by
the charge |
Rs. 112.000
Millions |
|
Brief of the
principal terms and conditions |
Rate of Interests
– CC, Bills, ILC/FLC - @ 11.25% and for TL @ 9.50% |
|
Description of
the property charged indicating |
Immovable
properties, Stock in trade, Plant & machinery and book debts |
|
Charge
identification |
10005659 |
As per website
details
Incorporated in 1964, as a 10.MTS per day production, it is considered the mother of waste paper based mills, AMARAVATHI SRI VENKATESA PAPER MILLS LIMITED. Located in the banks of river Amaravathi, one of the pioneers of paper manufacturing in south India, has 3 machines making various grades of paper using the state of the art equipments and catering to wide range of customers not only through the length and breath of the country but the unit is also a leading exporter. The company makes premium grades only, like Bristol paper, Surface Sized Maplitho Paper, Various grades of Creamwoves, specialty paper like Azurelaid, Ledger, Manifold and also two grades of Colourwove paper. For more information on the products, please contact the company's wide dealer base.
Today the 3-Production Machines manufacture around 110.TPD and the mill has one
of the most sophisticated Pulp-mill equipments. Well managed in all spheres the
company sets benchmark for its low power and steam consumption. Also the
company is in expansion mode to install a high pressure boiler and a
backpressure turbine for power extraction.
INFRASTRUCTURE
v Lamort pulp mill
v Voith De-Inking
v Krima Cellwood Hot-dispersion system
v Roningen petter Waste water recycling plant
v Pm1- 1.8.m deckle, surface sizing coating plant, 250MPM speed.
v Pm2- 1.8 m deckle, 240MPM speed.
v Pm3- 2.5 m deckle, Dr.Hogenkampf head-box, Edward Kusters Calender, Bertrams pope reel, 335MPM speed.
v Globe Rewinders and Duplex Cutters
v ETP system with Aerators and lagoons
v Wet Scrubber for less air pollution in the boiler
v Usage of High efficiency Nash vaccum pumps, Andritz pulp pumps and fan pumps and High consistency pulpers for reducing electricity consumption and water consumption.
PRODUCTS BEING
MANUFACTURED
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VARIETIES |
GSM RANGE |
|
Unit - I |
Super Cream Wove |
44-60 |
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Super Colour Wove |
44-60 |
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Colour Printing |
90 |
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Azure Laid |
56-80 |
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Duplicating |
60-80 |
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and Economy range of above varities |
44-90 |
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Standard News Print Super Delux |
48-52 |
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Standard News Print Delux |
48-52 |
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Standard News Print |
48-52 |
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Unit - II |
Mani Fold - White / Coloured |
29-30 |
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SS Maplitho |
54-70 |
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Super Cream Wove |
44-60 |
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Super Colour Wove |
44-60 |
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Colour Printing |
90 |
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Azure Laid |
56-80 |
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Duplicating |
60-80 |
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and Economy range of above varities |
44-90 |
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Unit - III |
Mani Fold - White / Coloured |
29-30 |
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Super Cream Wove |
44-60 |
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Super Colour Wove |
44-60 |
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Colour Printing |
90 |
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Azure Laid |
56-80 |
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Duplicating |
60-80 |
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and Economy range of above varities |
44-90 |
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.43.59 |
|
UK Pound |
1 |
Rs.85.53 |
|
Euro |
1 |
Rs.58.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--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 |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
57 |
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 |
|