MIRA
INFORM REPORT
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Report Date : |
08.10.2007 |
IDENTIFICATION DETAILS
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Name : |
THENI GURU KRISHNA TEXTILE MILLS PRIVATE LIMITED |
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Registered Office : |
207 - B, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.01.2005 |
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Com. Reg. No.: |
18-055188 |
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CIN No.: [Company
Identification No.] |
U17111TN2005PTC055188 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIT01430C |
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PAN No.: [Permanent
Account No.] |
AACCT1759Q |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporters of Yarn and Textiles |
RATING & COMMENTS
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MIRAs 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 510000 |
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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 2 years old company and took over the running business of
the erstwhile partnership concern Theni Guru Krisha Mills. Directors are
reported as experienced and respectable businessmen. Trade relations are
reported as fair. Payments are reported as 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/Factory : |
207 - B, |
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Tel. No.: |
91-4546-252995 / 255539 / 253985 / 252250 |
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Fax No.: |
91-4546-252995 / 255531 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. T. K. Ramasamy |
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Designation : |
Director |
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Address : |
4- A, |
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Date of Birth/Age : |
15.06.1947 |
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Date of Appointment : |
20.01.2005 |
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Name : |
Mr. T. K. Srinivasan |
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Designation : |
Director |
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Address : |
4- A, |
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Date of Birth/Age : |
26.05.1954 |
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Date of Appointment : |
20.01.2005 |
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Name : |
Mr. T. K. Ponraj |
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Designation : |
Director |
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Address : |
4 B, |
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Date of Birth/Age : |
07.06.1956 |
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Date of Appointment : |
20.01.2005 |
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Name : |
Mr. S. Rajasekar |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
02.01.1969 |
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Date of Appointment : |
20.01.2005 |
KEY EXECUTIVES
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Name : |
Mr. S Muthu Raju |
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Designation : |
Company Secretary |
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Address : |
9-A, [D-199], |
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Tel No. : |
91-452-4373608 |
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Fax No. : |
91-9994103021 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders (05.07.2006) |
No. of Shares |
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Mr. T. K. Ramasamy |
16500 |
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Mr. T. K. Srinivasan |
16500 |
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Mr. T. K. Ponraj |
16500 |
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Mr. S. Rajasekar |
16500 |
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Total |
66000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporters of Yarn and Textiles |
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Exports : |
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Products : |
Fabrics |
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Countries : |
U.S.A |
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Imports : |
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Products : |
Machinery |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit or D/A terms |
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Purchasing : |
L/C, Cash, Credit or D/A terms |
GENERAL INFORMATION
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No. of Employees : |
300 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chartered Accountants |
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Address : |
2/200, Venkatachalapuram, Sattur 626203, |
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Associates: |
Ψ Theni Anand
Krishna Mills Private Limited, Theni, -- Textile Mills Ψ
Theni Krishna Exports, Theni, -- Merchant Exporter Ψ
Karthik Cotton Traders, Theni, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100,000 |
Equity Shares |
Rs. 100/- Each |
Rs. 10.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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66,000 |
Equity Shares |
Rs. 100/- Each |
Rs. 6.600
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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6.600 |
6.600 |
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2] Reserves & Surplus |
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123.026 |
73.593 |
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NETWORTH |
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129.626 |
80.193 |
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LOAN FUNDS |
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1] Secured Loans |
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478.329 |
359.013 |
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2] Unsecured Loans |
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25.660 |
8.040 |
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TOTAL BORROWING |
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503.989 |
367.053 |
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DEFERRED TAX LIABILITIES |
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35.677 |
7.959 |
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TOTAL |
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669.292 |
455.205 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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365.778 |
232.122 |
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Capital work-in-progress |
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18.434 |
0.000 |
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INVESTMENT |
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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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208.232 |
174.770 |
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Sundry Debtors |
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41.554 |
33.528 |
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Cash & Bank Balances |
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26.805 |
2.198 |
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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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60.138 |
59.649 |
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Total
Current Assets |
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336.729 |
270.145 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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44.247 |
40.157 |
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Provisions |
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7.762 |
7.310 |
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Total
Current Liabilities |
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52.009 |
47.467 |
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Net Current Assets |
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284.720 |
222.678 |
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MISCELLANEOUS EXPENSES |
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0.360 |
0.405 |
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TOTAL |
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669.292 |
455.205 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover & Other Income |
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627.115 |
279.391 |
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Total Income |
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627.115 |
279.391 |
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Profit/(Loss) Before Tax |
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87.375 |
30.259 |
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Provision for Taxation |
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10.223 |
0.000 |
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Profit/(Loss) After Tax |
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77.152 |
30.259 |
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Earnings in Foreign Currency : |
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Total Earnings |
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365.119 |
NA |
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Imports : |
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Raw Materials |
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14.906 |
NA |
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Stores & Spares |
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4.560 |
NA |
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Capital Goods |
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52.430 |
NA |
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Total Imports |
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71.896 |
NA |
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Expenditures : |
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Interest |
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38.584 |
13.973 |
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Depreciation & Amortization |
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42.186 |
36.688 |
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Other Expenditure |
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458.970 |
198.471 |
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Total Expenditure |
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539.740 |
249.132 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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12.30 |
10.83 |
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Net Profit Margin (PBT/Sales) |
(%) |
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13.93 |
10.83 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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12.44 |
6.02 |
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Return on Investment (ROI) (PBT/Networth) |
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0.67 |
0.38 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.29 |
5.17 |
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Current Ratio (Current Asset/Current Liability) |
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6.47 |
5.69 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
THENI GURU KRISHNA TEXTILE MILLS PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
11.04.2005 Confirmation letter for deposit of title deeds by Mr. T K Ponraj Confirmation letter for deposit of title deeds by Mr. S. Rajasekar Confirmation letter for deposit of title deeds by Mr. R.
Krishnamoorthy |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Term Loan Rs. 3.000 Millions |
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3) Short particular of the property charged. If the property acquired
is subject to charge, date of the acquired of the property should be given |
MTL All the assets purchased out of Bank Finance and hypothecation
of Equipment, Machinery, Implements |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Equitable mortgage over site situated in S. No. 104/5 at Rate of Interest at 25% above SBAR with monthly rests as applicable
to CRA rating SBTL 2 risk etc. The insurance polices should be in the joint
names of the Bank and the unit of market value of the security or 110% of the
limit whichever is higher Repayment Repayable in 60 monthly instalments of Rs. 0.050 Millions
each, the first instalment commences from April 2006 with a gestation period
of twelve month. The term loan should be liquidated within 5 yaers from date
of disbursement within March 2011 |
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5) Name and Address and description of the person entitled to the
charge. |
State Bank of |
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6) Date and brief description
of instrument modifying the charge |
30.12.2005 Form C 1. A, Supplemental agreement of loan for incresde
in the overall limit of Rs. 351.200 Millions
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7) Particulars of modifications specifying the terms and conditions or
the extent of operations of the charge in which modification is made and the
details of the modification. |
CC/EPC Hypothecation of entire current assets of the company TL Paropassu first charge over the fixed assets of the company with
KVB LC Mechandise coverted uner LCs and Extn. Of charge on current
assets as stipulated for CC/EPC limits BG Counter guarantee from the company and extn. Of charge on current
assets as stipulated for CC/EPC limits Interest FBWC 0.75% below SBAR 9.50% TL 0.25% above SBAR 10.50% TL 0.75% below SBAR 9.50% Repayment the proposed TL of Rs. 137.900 Millions repaid 24
quarterly installment commencing from April 2006 after a moratorium period 3
months |
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 Intl
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 companys 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.43.39 |
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1 |
Rs.85.16 |
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Euro |
1 |
Rs.57.60 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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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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45 |
This score serves as a reference to assess SCs 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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