MIRA
INFORM REPORT
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Report Date : |
24.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE VELLIMALAI RUBBER COMPANY LIMITED |
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Registered Office : |
Ooppoottil Buildings, Kottayam – 686 001, Kerala |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.02.1944 |
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Com. Reg. No.: |
1306 |
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CIN No.: [Company
Identification No.] |
L2519KL1944PLC001306 |
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Legal Form : |
A closely held Public Limited Company |
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Line of Business : |
Manufacturer of rubber. |
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 319992 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having
satisfactory track. Trade relations are fair. Financial position is good.
Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Post Box No. 187, Ooppoottli Buildings, K.K Road, Kottayam – 686 001,
Kerala, India |
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Tel. No.: |
91-481-563513 / 560108/562690 |
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Fax No.: |
91-481-563614 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. P J Motishaw |
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Designation : |
Director |
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Name : |
Mr. Ravi Abraham |
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Designation : |
Director |
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Name : |
Mr. Koshy Stephanos |
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Designation : |
Director |
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Name : |
Mr. P A Eapen |
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Designation : |
Director |
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Name : |
Mr. A kurian |
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Designation : |
Director |
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Name : |
Mr. C A Thomas |
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Designation : |
Director |
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Name : |
Mr. A Jacob |
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Designation : |
Managing director |
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Name : |
Mr. Philip Jacob |
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Designation : |
Whole time director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of rubber. |
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Products : |
· Pepper · Rubber · Cloves |
GENERAL
INFORMATION
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No. of Employees : |
60 |
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Bankers : |
NA |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
· Hariharan and Company Chartered Accountants Address: Mysore · Cheriyan and Cheriyan Chartered Accountants Address: Kottayam |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity shares |
Rs. 10/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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360000 |
Equity shares |
Rs. 10/-
each |
Rs. 3.600
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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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3.600 |
3.600 |
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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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76.398 |
71.023 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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79.998 |
74.623 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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79.998 |
74.623 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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44.671 |
31.707 |
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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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18.636 |
17.307 |
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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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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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0.000 |
0.000 |
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Other Current Assets |
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25.118 |
31.207 |
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Loans & Advances |
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10.364 |
13.430 |
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Total
Current Assets |
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35.482 |
44.637 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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3.315 |
2.702 |
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Provisions |
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15.476 |
16.326 |
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Total
Current Liabilities |
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18.791 |
19.028 |
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Net Current Assets |
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16.691 |
25.609 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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79.998 |
74.623 |
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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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17.767 |
11.539 |
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Interest and dividend |
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1.983 |
2.844 |
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Net business profit transferred from P &
L A/c of Comorin Rubbers |
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0.450 |
0.447 |
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Increase / Decrease in Stock |
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6.495 |
3.451 |
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Other Income |
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3.542 |
4.632 |
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Total Income |
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30.237 |
22.913 |
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Profit/(Loss) Before Tax |
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9.076 |
3.696 |
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Provision for Taxation |
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2.500 |
1.000 |
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Profit/(Loss) After Tax |
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6.576 |
2.696 |
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Expenditures : |
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Consumption of stores and spares parts |
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1.637 |
1.519 |
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Salaries, Wages, Bonus, etc. |
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10.768 |
9.497 |
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Depreciation & Amortization |
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0.658 |
0.778 |
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Other Expenditure |
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8.097 |
7.423 |
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Total Expenditure |
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21.160 |
19.217 |
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KEY RATIOS
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31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
0.00 |
0.00 |
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Long Term Debt-Equity
Ratio |
0.00 |
0.00 |
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Current Ratio |
1.92 |
2.08 |
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TURNOVER RATIOS |
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Fixed Assets |
0.35 |
0.26 |
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Inventory |
1.37 |
1.15 |
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Debtors |
0.00 |
0.00 |
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Interest Cover
Ratio |
0.00 |
0.00 |
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Operating Profit
Margin(%) |
55.06 |
13.91 |
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Profit Before
Interest And Tax Margin(%) |
51.12 |
6.96 |
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Cash Profit
Margin(%) |
41.01 |
12.17 |
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Adjusted Net
Profit Margin(%) |
37.08 |
5.22 |
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Return On
Capital Employed(%) |
11.77 |
1.07 |
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Return On Net
Worth(%) |
8.54 |
0.80 |
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LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORT:
Performance:
The rubber crop
produced during the year was 272969 Kgs. compared to 259983 Kgs. during the
previous year. The average price realized was Rs. 62/48 per Kg when compared to
Rs. 59/31 per Kg during the previous year. Income from minor products was less
due to lower crop and price. Due to adverse weather conditions and labour
unrest in company's estate in Kerala rubber production was lower by 35931 kgs.
of the estimate. However, due to
better price of
rubber company was able to make some profit during the year. Company has
started large scale replantation of rubber areas with own funds and the rubber
crop will be comparatively low in the next few years. Estimated rubber crop during
the current year is 352450 kgs. Due to imports price of minor product such as
cloves, pepper etc. are very low. Due to prolonged drought in the previous year
production also will be less. Wages settlements with labour Unions in Kerala
expired on 31.3.2002. The Planters' Association is negotiating with the unions
for new settlement, the outcome of which is awaited. Arrears of wages if any
due to the settlement
will be paid in
the year in which it is payable and adequate provision for the
same is made in the
accounts.
Accounting for
Deferred Tax.
Deferred tax asset
(net of Liability) on account of timing difference and relating to unabsorbed
depreciation and carry forward of losses is not recognized as a matter of
prudence.
FIXED ASSTES:
· Land and Development
· Buildings
· Plant and machinery
· Sprinkler Units
· Furniture, Fitting and equipments
· Vehicles
· Electrical installation
· Water Pollution Control System
WEBSITE DETAILS:
The Vellimalai estate is the major contributor to the Vellimalai Rubber
Company. This plantation is situated on the Vellimalai Range of hills, which
are part of the Western Ghats. The plantation falls under the jurisdiction of
the Kanyakumari District, Tamil Nadu,. The plantation was set up in 1944 with
rubber being the major crop. Currently 1350 acres of the plantation is utilised
for rubber cultivation.
Scientific methods of cultivation, like systematic re-plantation with
high yielding clones are practiced here. The results of these methods are
evident from the fact that the plantation's yield per hectare for the rubber is
among the highest in India.
The other crops cultivated here are cloves, pepper, nutmeg, cardamom, vanilla
and coconut. Crops like aracnut, cashew, pineapple and banana are also
cultivated in a limited scale.
The Kootathukulam Estate was acquired as part of the Vellimalai Rubber Company
in 1955. This plantation is located in the verdant surroundings near Chittar in
Kerala Rubber is the primary crop here, cultivated in over 300 acres. Pepper
and banana cultivation are also carried out in a major way.
Cochin Plantations Limited. and Thottakad Estate.
Cochin Plantations Limited. was brought in the year 1988. The Cochin
Plantations Limited. along with the Oriental Estates is situated in an area 510
acres in the picturesque Nelliampathy range of hills in Palakkad, Kerala. The
major crops under cultivation here are cardamom and coffee. The Thottakad
Estate (120 acres) functions as a small subdivision of Oriental Estate. The
crops grown here are similar to the once cultivated in Cochin Plantations.
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.39.68 |
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UK Pound |
1 |
Rs.82.11 |
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Euro |
1 |
Rs.58.81 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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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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63 |
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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