MIRA
INFORM REPORT
|
Report Date : |
08.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
ARUNK KUMAR SPINNING MILL PRIVATE LIMITED |
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Registered Office : |
184 A, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.04.1989 |
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Com. Reg. No.: |
18-2422 |
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CIN No.: [Company
Identification No.] |
U17111TZ1989PTC002422 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBA03103C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers and Exporters of cotton yarn, viscose yarn, cotton
/ viscose blended yarn , open ended yarns and wider width gray fabrics |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 562000 |
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Status : |
Good |
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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 records. 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 concern can be considered normal for business dealings at usual
trade terms and conditions |
LOCATIONS
|
Registered Office : |
184 A, Hotel Sri Ganesh, Chinnasamy Naidu Road, New Chiddapudur,
Coimbatore – 641 044, Tamil Nadu,
India |
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Tel. No.: |
91-4254 – 262218 |
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Fax No.: |
91-4254-263002 |
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E-Mail : |
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Corporate Office : |
570/2, Kariyampalayam (Post), Annur, |
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Tel. No.: |
91-4254-262218 / 262170 / 263585 |
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Fax No.: |
91-4254 - 263002 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Avanashippa Gounder Vellusamy |
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Designation : |
Managing Director |
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Address : |
No.71, |
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Date of Birth/Age : |
21.12.1967 |
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Date of Appointment : |
21.06.1989 |
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Name : |
Mrs. Velusamy Radha |
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Designation : |
Director |
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Address : |
No.71, |
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Date of Birth/Age : |
25.09.1971 |
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Date of Appointment : |
27.09.1993 |
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Name : |
Mr. M K Ramasamy |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
13.07.1935 |
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Date of Appointment : |
12.08.1999 |
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Name : |
Mr. Ganesan Muthukrishnan |
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Designation : |
Director |
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Address : |
No.2A2, Sri Ganesh Vihar, Raja Nagar, |
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Date of Birth/Age : |
20.12.1957 |
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Date of Appointment : |
12.08.1999 |
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Name : |
Mrs. Avinasiyappan Valliammal |
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Designation : |
Director |
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Address : |
No.71, |
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Date of Birth/Age : |
14.03.1932 |
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Date of Appointment : |
21.06.1989 |
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Name : |
Mr. Ramasamu Kaliyappan |
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Designation : |
Director |
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Address : |
No.34, |
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Date of Birth/Age : |
18.04.1936 |
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Date of Appointment : |
12.08.1999 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. A Velusamy |
|
181410 |
|
Mrs. A Valliammal |
|
8401 |
|
Mr. S Ponnusamy |
|
2635 |
|
Mr. P R Rasiappan |
|
1363 |
|
Mr. S Ganapathy Appan |
|
2680 |
|
Mrs. V Radha |
|
33255 |
|
Mr. V Palanisamy |
|
2350 |
|
Mr. P Maruthachalam |
|
3771 |
|
Mrs. N Subbathal |
|
1735 |
|
Mr. P Subbana Gounder |
|
1233 |
|
Mr . K Palanisamy |
|
1831 |
|
Mr. S Natraj |
|
1421 |
|
Mr. S Ramasamy |
|
1287 |
|
Mr. C Palanisamy |
|
1404 |
|
Mr. V Krishna Gounder |
|
1715 |
|
Mr. K Nanjappa Gounder |
|
1831 |
|
Mr. A Kaliappa Gounder |
|
1410 |
|
Mr. V Periya Thambi Gounder |
|
1318 |
|
Mr. V Ramasamy Gounder |
|
1170 |
|
Mr. A Sennimalai Gounder |
|
1438 |
|
Mr. S Nallasivam |
|
1169 |
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Mrs. M Marathlal |
|
1302 |
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Mr. R Kanakaraj |
|
1404 |
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Mr. A K Palanisamy Gounder |
|
1184 |
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Mr. R Kaliappa Gounder |
|
1755 |
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Mr. S Ramasamy Gounder |
|
1755 |
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Mr. G Rangasamy |
|
1756 |
|
Mr. K Ramasamy |
|
1170 |
|
Mr. V Pakthavachalam |
|
993 |
|
Mr. V K Rayappan |
|
550 |
|
Mr. P. M Mani |
|
619 |
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Mr. P L Kalichamy |
|
619 |
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Mr. M K Thomas |
|
619 |
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Mr. A S Chinnappan |
|
646 |
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Mr. K R Duraisamy |
|
646 |
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Mr. P Rajendran |
|
480 |
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Mr. R Kanakaraj |
|
470 |
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Mr. G Vetrivel |
|
990 |
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Mr. Chinnappan |
|
450 |
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Mr. Karunaiammal |
|
450 |
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Mr. R Duraisamy |
|
450 |
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Mr. R Duraraj |
|
410 |
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Mr. Thangavel |
|
400 |
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Mr. S Mrugasamy |
|
480 |
|
Mr. L Kalisamy |
|
460 |
|
Mr. S Rajendran |
|
480 |
|
|
Total |
275365 |
Equity Share Break – up (Percentage of Total Equity):
|
Sr.
No. |
Category |
Percentage |
|
1 |
Directors or relatives of directors |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of cotton yarn, viscose yarn,
cotton / viscose blended yarn , open ended yarns and wider width gray fabrics |
GENERAL INFORMATION
|
Bankers : |
· The Catholic Syrian Bank Limited Address: E- Mail: coimbatore@csb.co.in ·
Industrial Development Bank Of “ Cuffe parade, Colaba – 400 005, ·
Indian Overseas Bank |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Tamil and Company Chartered Accountants |
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Address : |
Room No.34, S A Building, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000 |
Equity Shares |
Rs. 100/- each |
Rs. 30.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
275640 |
Equity shares |
Rs. 100/-
each |
Rs. 27.564
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
|
27.564 |
27.564 |
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2] Share Application Money |
|
0.000 |
0.000 |
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|
3] Reserves & Surplus |
|
112.936 |
26.505 |
|
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
140.500 |
54.069 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
256.319 |
230.504 |
|
|
2] Unsecured Loans |
|
60.742 |
71.718 |
|
|
TOTAL BORROWING |
|
317.061 |
302.222 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
28.459 |
14.332 |
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TOTAL |
|
486.020 |
370.623 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
356.238 |
205.075 |
|
|
Capital work-in-progress |
|
0.234 |
4.219 |
|
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|
|
|
|
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INVESTMENT |
|
0.403 |
0.403 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
157.550 |
133.720 |
|
|
Sundry Debtors |
|
91.148 |
54.451 |
|
|
Cash & Bank Balances |
|
2.782 |
4.469 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
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Loans & Advances |
|
64.479 |
75.281 |
|
Total
Current Assets |
|
315.959 |
267.921 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
177.574 |
105.380 |
|
|
Provisions |
|
9.240 |
1.615 |
|
Total
Current Liabilities |
|
186.814 |
106.995 |
|
|
Net Current Assets |
|
129.145 |
160.926 |
|
|
|
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|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
486.020 |
370.623 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
|
86.540 |
78.230 |
|
|
Other Income |
|
3.634 |
0.000 |
|
|
Total Income |
|
90.174 |
78.230 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
1.151 |
1.002 |
|
|
Provision for Taxation |
|
0.532 |
0.079 |
|
|
Profit/(Loss) After Tax |
|
1.683 |
0.923 |
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Financial Charges |
|
1.669 |
1.488 |
|
|
Depreciation & Amortization |
|
2.628 |
1.315 |
|
|
Other Expenditure |
|
80.429 |
71.622 |
|
Total Expenditure |
|
84.726 |
74.425 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
1.86 |
1.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
1.33 |
1.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
0.17 |
0.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.00 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
3.58 |
7.56 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.69 |
2.50 |
LOCAL AGENCY FURTHER INFORMATION
|
Corporation identity number or foreign company registrations number of
the company |
U17111TZ1989PTC002422 |
|
Name of the company |
Arun Kumar Spinning Mill Private Limited. |
|
Address |
184 A, |
|
This Form is for |
Modification of charge |
|
Type of Charges |
· Immovable property · Movable property · Book debts · Others |
|
Particular of the charge holder
|
CIN U6519KL1920PLC000175 The Catholic Syrian Bank Limited Address: E- Mail: coimbatore@csb.co.in |
|
Nature or description of the instrument creating charge |
· Declaration and Undertaking in the matter of Mortgage by deposit of Title Deeds · Entry No. 113 |
|
Date of the instrument creating charge |
18.05.2007 |
|
Amount Secure by the charge |
Rs. 452.829 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of interest: · 12.50% p.a. for working Capital Limits · 12.00%p.a. on Term Loans Terms of Repayments: · Working capital limit repayable on demand · Term Loans and Mortgaged Loans are repayable in monthly installments (as per previous charge) Margin: Mortgage Loan – 50% Machinery Term Loan -20% Working Capital Limits – 25% One Time Import LC Limits – Cash Margin
10% |
|
Particulars of the Present Modification |
· Paripassu First Charge between IDBI and CSB on 4.68 Acres of Land and Building at SF. No. 570/2 and 570/3, Karegoudenjpalayam Village, Annur, Avinash TK are extended to Rupee Term Loan Rs. 223.906 millions sanctioned by CSB and Machinery Term Loan Rs. 107.500 millions Sanctioned by IDBI · Paripassu Second Charge extended to CSB for working Capital Limits Rs. 143.100 millions · For further details refer Attachment. |
|
Name of the
company |
ARUNKUMAR SPINNING MILL LIMITED |
|
Presented
By |
Mr. A Velusamy,
Managing director |
|
1) Date and
description of instrument creating the change |
25.02.2000 deed
of hypothecation executed by the company in favour of Industrial Development
Bank of India (IDBI) A certified copy of the said Deed of Hypothecation is
enclosed. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
The Term loan of
Rs. 24.000 millions agreed to be lent and advanced by IDBI under Technology Up
gradation Fund Scheme (TUFS) to the company together with interest additional
interest, liquidated damages, premia on prepayment or on redemption, cost,
charges expenses and all other moneys payable by the company to IDBI in terms
of the Loan Agreement dated 25.02.2000 between the company of the one Part
and IDBI of the Other part. |
|
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 |
The whole of the
movable properties of the company including its movable Plant and Machinery,
Machinery Spares, Tools and Accessories and Other movables both present and
future (save and except book debts) whether installed or not and whether lying loose
or in case or shall hereafter from time to time during the continuance
of the security be brought into or be stored in about the company’s
factories, premises and go downs or wherever else the same may be or be held
by any party to the order or disposition of the company or in the course of
transit or on high seas or on as ever, or delivery, howsoever and where as
ever in the possession of the company and either by way of substitution or
addition. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
· The charge operates as security interalia, for the due repayment by the company to IDBI for its Term Loan of Rs. 24.000 millions under TUF scheme together with Interest, Additional Interest, Liquidated damages, premia on prepayment on redemption, costs, charges, expenses and all other moneys, payables by the company to IDBI in terms of the said Loan Agreement. · The charge in favour of IDBI under the said deed of Hypothecation is subject to the charge created and /or to be created by the company in favour of its bankers on the company in favour of its bankers on the company’s stock of raw materials, semi – finished goods and finished goods and consumable stores and book debts and such others movable as may be specifically permitted to secure its working capital requirements in the ordinary course of business. · The company has undertaken to keep the goods hypothecated in marketable and good condition on its own costs and insure the same in the Joint names of the company and IDBI. · All the goods hypothecated and all the realizations and insurance proceeds thereof and documents in respects of the said security are to be kept distinguishable and held on the secured property of IDBI ·
The Security created under the said |
|
5) Name and
Address and description of the person entitled to the charge. |
Industrial Development Bank Of “ Cuffe parade, Colaba – 400 005, |
OTHER INFORMATION:
Group of companies:
· Sri Arunathaya Textiles
E-Mail: ajit@vsnl.net
· Sri Aruljyothi Exports Private Limited
E-Mali: ajit@vsnl.net
WEBSITES DETAILS:
Established in 1992, in
Their stringent commitment to Global standards of Quality
has seen their grow phenomenally over the last decade, to create a niche of
their own, in the highly competitive world markets. Their unchallenged variety
of products is already a rage in several
Importantly, they use cutting edge technology to put their products through a series of Quality control Checks, to ensure stringent Quality Standards. This penchant for Quality is also shared by their team of highly qualified and competent professionals, who under the able and dynamic leadership of Mr.Velusamy, Managing Director, have made their remarkable growth possible. It is with this shared vision, that they are marching towards their avowed goal of attaining undisputed leadership, in their chosen field.
Infrastructure:
The one remarkable aspect that makes ARUNKKUMAR SPINNING MILL PRIVATE LIMITED stand out from the crowd is their constant endeavor to upgrade and embrace the most modern of technology, to serve their customers better, and with more efficiency. All their efforts are concentrated on using cutting edge technology in their State of the art production unit boasting of world class machinery.
This penchant for maintaining the highest standards of quality across every stage of the manufacturing process , ensures that they always meet or exceed customers expectations, every time. Their sophisticated production facility is also responsible for the remarkable turn around time and their prompt delivery schedules.
Their vast and extensive range of machinery includes:
Products:
Selection of Raw Material:
Only the best possible Quality Raw material is used in the manufacturing process. This process of hand picking Quality Raw material is personally managed by their Managing Director, who with his vast and varied experience in this field, has unmatched skills, in choosing the right Raw material.
This stringent commitment to Quality right at the stage of procuring raw materials ensures that their products always meet global standards of Quality or even exceed those standards.
This same commitment to Quality is also shared by their team of manpower, who strive to deliver only the best products, every time.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.39.49 |
|
|
1 |
Rs.80.41 |
|
Euro |
1 |
Rs.55.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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
|
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 |
|