MIRA
INFORM REPORT
|
Report Date : |
31.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MAHESH KUMAR
SPINNING MILLS PRIVATE LIMITED |
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Registered Office : |
No. 65,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.10.2002 |
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Com. Reg. No.: |
18-10347 |
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CIN No.: [Company
Identification No.] |
U17111TZ2002PTC010347 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBM03795B |
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PAN No.: [Permanent
Account No.] |
AADCM4550B |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
To Carry on the
business of ginning, spinning, weaving or manufacturing or dealing in cotton,
silk or other fibrous substances and the preparation, dyeing or colouring of
any of the said substances and sale of yarn, cloth and silk. To carry on the
business of spinning of yarn out of natural fibres such as cotton, flax,
hemp, jute, ramie, silk, wool, mohair, alpaca, vicuna, llama, cashmere, caml
hail, rabbit wool and out of artificial fibres, say, rayons of all kinds such
as viscose, cupramr onium, acetate, casein, ardil, alginate, nylons, vinyon
and spinning of teryne 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 150000 |
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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 rack. 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
|
Registered Office : |
No. 65,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Tel. No.: |
91-421-220493 |
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E-Mail : |
SOLE
PROPRIETOR/PARTNERS/DIRECTORS
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Name : |
Ms. B. Maheswari |
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Designation : |
Director |
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Address : |
62, Kumarapalayam,
2nd Street, Rayapuram Extension, Tirupur – 641 601, Tamilnadu,
India. |
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Date of Appointment : |
21.02.2003 |
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Name : |
Mr. R.
Balasubramaniam |
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Designation : |
Managing Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
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Name : |
Mrs. B. Jayalaxmi |
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Designation : |
Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
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Name : |
Mr. B. Senthil
Kumar |
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Designation : |
Director |
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Address : |
62,
Kumarapalayam, 2nd Street, Rayapuram Extension, Tirupur – 641 601,
Tamilnadu, India. |
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Date of Appointment : |
21.02.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. R
Balasubramaniam |
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2500 |
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Mrs. Jayalaxmi
Balasubramaniam |
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2500 |
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Ms. Maheswari
Balasubramaniam |
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2500 |
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Mr. B. Senthil
Kumar |
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2500 |
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TOTAL: |
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10000 |
BUSINESS DETAILS
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Line of Business : |
To Carry on the
business of ginning, spinning, weaving or manufacturing or dealing in cotton,
silk or other fibrous substances and the preparation, dyeing or colouring of
any of the said substances and sale of yarn, cloth and silk. To carry on the
business of spinning of yarn out of natural fibres such as cotton, flax,
hemp, jute, ramie, silk, wool, mohair, alpaca, vicuna, llama, cashmere, caml
hail, rabbit wool and out of artificial fibres, say, rayons of all kinds such
as viscose, cupramr onium, acetate, casein, ardil, alginate, nylons, vinyon
and spinning of teryne yarn. |
GENERAL
INFORMATION
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No Of Employees: |
About 125 |
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Bankers : |
State Bank of
India, Commercial Branch, 24 Stanes Road, 4th Street, Tirupur –
641 602, Tamilnadu, India. |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
T. Kumaaravelu Chartered
Accountant |
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Address : |
Dr. Radhakrishnan
Road, Coimbatore – 642 012, Tamilnadu. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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1600000 |
Equity Shares |
Rs. 10/- each |
Rs. 16.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity Shares |
Rs. 10/- each |
Rs. 16.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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16.000 |
16.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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19.677 |
7.411 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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35.677 |
23.411 |
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LOAN FUNDS |
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1] Secured Loans |
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64.839 |
73.814 |
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2] Unsecured Loans |
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23.457 |
25.405 |
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TOTAL BORROWING |
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88.296 |
99.219 |
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DEFERRED TAX LIABILITIES |
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2.755 |
3.269 |
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TOTAL |
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126.728 |
125.899 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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83.153 |
85.133 |
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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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0.000 |
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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29.370 |
19.537 |
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Sundry Debtors |
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42.447 |
38.953 |
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Cash & Bank Balances |
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0.330 |
0.298 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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11.454 |
5.153 |
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Total
Current Assets |
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83.601 |
63.941 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1.235 |
0.615 |
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Provisions |
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38.904 |
22.701 |
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Total
Current Liabilities |
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40.139 |
23.316 |
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Net Current Assets |
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43.462 |
40.625 |
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MISCELLANEOUS EXPENSES |
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0.113 |
0.141 |
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TOTAL |
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126.728 |
125.899 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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187.468 |
147.374 |
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Total Income |
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187.648 |
147.374 |
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Profit/(Loss) After Tax |
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12.988 |
7.848 |
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Earnings in Foreign Currency : |
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Total Earnings |
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4.407 |
0.000 |
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Expenditures : |
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Interest |
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8.937 |
8.674 |
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Depreciation & Amortization |
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10.001 |
7.712 |
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Other Expenditure |
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155.541 |
123.140 |
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Total Expenditure |
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174.479 |
139.526 |
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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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6.92 |
5.32 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.45 |
0.99 |
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Current Ratio (Current Asset/Current Liability) |
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3.08 |
2.74 |
LOCAL AGENCY
FURTHER INFORMATION
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Name of the Company |
MAHESH KUMAR SPINNING MILLS PRIVATE
LIMITED |
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Presented by |
Mr. R. Balasubramaniam, Managing Director |
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1. Date and
description of the instrument creating or evidencing the charge
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21.03.2003 Agreement loan
overall Limit. Agreement of
Hypothecation of goods and Assets. Letter regarding
the grant of Individual Limits within overall Limits. Letter evidencing
creation of equitable mortgage. (No Instrument). Sanction order/
Arrangement Letter of issued by State Bank of India, Tirupur (No Instrument). |
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2. Amount secured
by the charge /amount owing on security of the charge |
The Overall
Amount is Rs. 56.000 Millions as detailed below:
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3. Short
Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be
given
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First Charge –
Term Loan Equitable
Mortgage over the land and building at SF 294/1 Thandukarampalayam Village.
Avinashi TK. P. Puliam Datti Sub Road, Gobi Regn., Dt. Land measuring about
2.59 Acres of Land and Building constructed thereon. Hypothecation of
all the fixed assets. Plant and machineries purchased/ proposed to be
purchased out of term loan. First and
Exclusive Charge – Cash Credit Limits: Hypothecation of
stocks viz. Raw Materials, Semi-finished goods, Finished goods and all
consumable stores spares and receivables and Books of the company. L.C is further
secured by goods/bills covered under the L.C. Further the term
loan of Rs. 40.000 Millions is secured by second charge over the current
assets of the company. Further the cash
credit facility of Rs. 9.500 Crand LC of Rs. 20.000 Millions are secured by Second Charge
over the residual value of fixed assets in the name of the company to the
extent of 2.59 Acres & building thereon of the company. |
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4. Gist of the
terms and conditions and extent and operation of the charge. |
Term Loan: 2.10% points over
SBMTLR (11.25% p.a. w.e.f. 1.11.02). The present effective rate being 13.35%
p.a. on monthly rests, subject to revision from time to time. Cash Credit: 2.10% points over
SBMTLR (10.75% p.a. w.e.f. 01.11.02). The present effective rate being 12.85%
p.a. on monthly rests, subject to revision from time to time. Margin: TERM LOAN: Building – 50% Machineries – 25% CASH CREDIT: Raw Materials –
25% Stock in Process
– 30% Finished Goods –
25% Store/Spares/Consumables
– 50% Receivables – 50%
(Cover Period 45 days) Inland / Import
L.C. – 25% Repayment: TERM LOAN: The Term Loan of
Rs. 46.500 Millions will be repaid in 22 quarterly instalments with a holiday
period of 3 quarters (03 April – 03 December) Repayment commencing from March
2004 and ending in June 2009 as detailed below:
CASH CREDIT – ON
DEMAND |
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5. Names, address
and description of the persons entitled to charge |
State Bank of
India, Commercial Branch, 24 Stanes Road, 4th Street, Tirupur –
641 602, Tamilnadu, India. |
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6. Date and brief
description of instrument modifying the charge |
07.07.2004 Supplemental
Agreement of Loan for Increase of Overall Limit. Agreement of
Hypothecation of Goods and Assets Letter regarding
the Grant of Individual Limits with in overall Limits. Letter evidencing
creation of Equitable Mortgage. (No Instrument) Sanction order /
Arrangement Letter issued by State Bank of India, Tirupur. (No Instrument) |
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7. Particular of
modification specifying the terms and conditions or the extent
or operation of the charge in which modification is made and the details of modification |
The overall
amount is Rs. 56.000 Millions increased to Rs. 83.000 Millions as detailed
below: (Amount in Millions)
Further the cash
credit and L.C. facilities are secured by second charge over the residual
value of fixed assets (Including Factory Land). RATE OF INTEREST: Term Loan: Rs. 20.000
Millions. 2% Points over
SBMTLR. The present effective rate being 12.25% p.a. on monthly rests.
Subject to revision from time to time. Cash Credit: 2% Points over SBMTLR.
The present effective rate being 12.25% p.a. on monthly rests. Subject to
revision from time to time. MARGIN: Term Loan: 27.27% Cash Credit: Raw Materials –
25% Stock in Process
– 30% Finished Goods –
25% Store/Spares/Consumables
– 50% Receivables – 50%
(Cover Period 45 days) Inland / Import
L.C. – 25% REPAYMENT: Term Loan: The Term Loan of
Rs. 20.000 Millions will be repaid in 22 quarterly instalments with a holiday
period of 3 quarters (03 April – 03 December) Repayment commencd from 31.12.2005
and ending in 31.03.2011 as detailed below:
CASH CREDIT – ON
DEMAND Other Terms and
conditions remained same. |
|
Name of the Company |
MAHESH KUMAR SPINNING MILLS PRIVATE
LIMITED |
|
Presented by |
MAHESH KUMAR SPINNING MILLS PRIVATE
LIMITED |
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1. Date and
description of the instrument creating or evidencing the charge
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Hypothecation of
Equitable Mortgage or mortgage of property by depositing the title deeds. |
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2. Amount secured
by the charge /amount owing on security of the charge |
Rs. 56.000
Millions |
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3. Short
Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be
given |
Hypothecation of
Immovable Properties, Plant & Machinery, Stock in Trade, Book Debts etc. EM Over the
existing factory land & building at SF 294/1, Thadukarampalayam, Avanashi
TK. And charge over the entire Fixed Assets of the company both existing and
proposed. Fresh EM Over the company land at SF 294/2, and additional building
proposed to be constructed thereon. Hypothecation of all the current assets
of the company. |
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4. Names, address
and description of the persons entitled to charge |
State Bank of
India, Commercial Branch, 24 Stanes Road, 4th Street, Tirupur –
641 602, Tamilnadu, India. |
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5. Date and brief
description of instrument modifying the charge |
Form C-1, C-2, C-5
date 27.04.2006, Letter Evidencing Creation of fresh EM DT 27.04.2006, Letter
Evidencing Additional Charge over the Existing Property of the company dated
27.04.2006. |
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6. Particular of
the present modification |
Overall Limit is
increased from Rs. 83.000 Millions to Rs. 174.000 Millions. Further limit is
additionally secured by Property owned by the company. |
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 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
|