MIRA
INFORM REPORT
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Report Date : |
10.10.2007 |
IDENTIFICATION DETAILS
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Name : |
THAMBBI MODERN SPINNING MILLS LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.07.2007 |
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Date of Incorporation : |
07.03.1977 |
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Com. Reg. No.: |
776 |
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CIN No.: [Company
Identification No.] |
L17111TZ1977PLC000776 |
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Legal Form : |
A public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturing and selling of cotton 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 600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experience and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-427-447988 / 447049 |
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Fax No.: |
91-427-447059 |
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E-Mail : |
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Website : |
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Factory 1 : |
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Tel. No.: |
91 427 2346082/84 |
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Fax No.: |
91 427 2346079 |
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E-Mail : |
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Factory 2 : |
Opp. TNEB Sub-Station, |
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Tel. No.: |
91 427 2240009 |
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Factory 3 : |
Thambbi-Deltta Dyeing Plant |
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Tel. No.: |
91 427 2400055 |
DIRECTORS
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Name : |
Mr. R. Jagadeesan |
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Designation : |
Managing Director |
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Address : |
3/80 B, New Fairlands, |
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Qualification : |
B. Com. |
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Experience : |
30 Years |
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Date of Appointment : |
16.09.1978 |
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Name : |
Mrs. Malathi Jagadeesan |
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Designation : |
Director |
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Address : |
3/80 B, New Fairlands, |
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Name : |
Mr. M. Pugazhendhi |
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Designation : |
Director |
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Address : |
No.122,Tamilnadu Housing Board,
Tamabaram,Chennai-45, |
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Name : |
Mr. Ashok P.Shah |
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Designation : |
Director |
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Address : |
P.B.No.3, Chitradurga, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter’s
Holding |
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|
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Promoters |
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Indian Promoters |
2871270 |
49.82 |
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Foreign Promoters |
-- |
-- |
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Person Acting in Concert |
-- |
-- |
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Non – Promoter’s
Holding |
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Institutional Investors |
-- |
-- |
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Mutual Funds and UTI |
3100 |
0.05 |
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Bank, Financial Institutions, Insurance Companies |
53650 |
0.93 |
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FIIS |
-- |
-- |
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Others |
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Private Corporate Bodies |
676350 |
11.74 |
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Indian Public |
2154984 |
37.39 |
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NRIs / OCBs |
-- |
-- |
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Clearing Member |
3416 |
0.06 |
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Total |
5762770 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and selling of cotton yarn. |
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Products : |
Item Code Number : 5205 11 00 Product Description : Cotton Yarn |
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Exports : |
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Countries : |
Europe, |
PRODUCTION STATUS
|
Particulars |
Units |
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Installed
Capacity |
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Spindles |
Spindles |
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|
28352 |
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Rotors |
Rotors |
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|
360 |
GENERAL INFORMATION
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Suppliers : |
· Supreme Polypacks, Sivakasi · Gowtham Paper Cones, Erode · Jothi Packaging Industries, Tirupur · Ramalinga Packaging, Sivakasi · SunPolysacks Private Limited, Aranthangi · Sunmack, Pondichery |
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Customers : |
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No. of Employees : |
700 |
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Bankers : |
State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sankaran & Krishnan Chartered Accountants |
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Address : |
“Rose Wood” offices Complex, 130, |
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Memberships : |
The |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14000000 |
Equity Shares |
Rs. 10/- each |
Rs. 140.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5762770 |
Equity Shares |
Rs. 10/- each |
Rs. 57.628
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.07.2007 [16 Months] |
31.03.2006 [12 Months] |
31.03.2005 [18 Months] |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
57.600 |
49.000 |
49.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
93.100 |
[394.100] |
[562.600] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
150.700 |
[345.100] |
[513.600] |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
383.800 |
624.800 |
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2] Unsecured Loans |
49.400 |
12.100 |
0.000 |
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TOTAL BORROWING |
49.400 |
395.900 |
624.800 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
200.100 |
50.800 |
111.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
64.200 |
67.000 |
72.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
40.800
|
47.300 |
46.500 |
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Sundry Debtors |
25.500
|
24.400 |
44.800 |
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Cash & Bank Balances |
4.600
|
1.600 |
0.600 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
153.700
|
8.700 |
31.400 |
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Total
Current Assets |
224.600
|
82.000 |
123.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
88.900
|
100.500 |
88.400 |
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Provisions |
0.000
|
0.100 |
0.000 |
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Total
Current Liabilities |
88.900
|
100.600 |
88.400 |
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Net Current Assets |
135.700
|
[18.600] |
34.900 |
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MISCELLANEOUS EXPENSES |
0.200 |
2.400 |
3.900 |
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TOTAL |
200.100 |
50.800 |
111.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.07.2007 [16 Months] |
31.03.2006 [12 Months] |
31.03.2005 [18 Months] |
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Sales Turnover |
495.900 |
333.300 |
593.800 |
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Other Income |
185.700 |
50.900 |
3.800 |
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Stock Adjustments |
2.400 |
[1.600] |
[34.800] |
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Total Income |
684.000 |
382.600 |
562.800 |
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Profit/(Loss) Before Tax |
237.700 |
18.000 |
[216.000] |
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Provision for Taxation |
[145.900] |
0.200 |
0.000 |
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Profit/(Loss) After Tax |
383.600 |
17.800 |
[216.000] |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
19.068 |
NA |
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Total Earnings |
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Imports : |
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Cotton |
0.296 |
0.000 |
NA |
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Spares |
0.419 |
0.000 |
NA |
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Total Imports |
0.715 |
0.000 |
NA |
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Expenditures : |
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Raw Materials |
264.500 |
199.600 |
406.800 |
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Excise Duty |
0.000 |
0.000 |
26.600 |
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Power & Fuel Cost |
78.600 |
55.900 |
79.300 |
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Other Manufacturing Expenses |
35.800 |
32.500 |
51.800 |
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Employee Cost |
37.600 |
31.200 |
57.500 |
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Selling and Administration
Expenses |
18.500 |
18.200 |
19.200 |
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Miscellaneous Expenses |
2.100 |
19.700 |
76.400 |
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Interest & Financial
Charges |
1.700 |
1.700 |
47.300 |
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Depreciation |
7.500 |
5.800 |
13.900 |
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Total Expenditure |
446.300 |
364.600 |
778.800 |
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KEY RATIOS
|
PARTICULARS |
31.07.2007 [16 Months] |
31.03.2006 [12 Months] |
31.03.2005 [18 Months] |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
1.62 |
0.48 |
0.64 |
|
TURNOVER
RATIOS |
|
|
|
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Fixed Assets |
1.17 |
1.06 |
1.26 |
|
Inventory |
8.44 |
7.11 |
3.29 |
|
Debtors |
14.91 |
9.63 |
7.22 |
|
Interest Cover Ratio |
32.00 |
-17.41 |
-3.57 |
|
Operating Profit Margin(%) |
12.48 |
-7.14 |
-26.07 |
|
Profit Before Interest And Tax
Margin(%) |
10.97 |
-8.88 |
-28.41 |
|
Cash Profit Margin(%) |
41.56 |
-7.71 |
-34.04 |
|
Adjusted Net Profit Margin(%) |
40.05 |
-9.45 |
-36.38 |
|
Return On Capital Employed(%) |
6.83 |
-7.22 |
0.00 |
|
Return On Net Worth(%) |
39.64 |
32.46 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE:
The performance of the company was satisfactory and the company could register
a profit after a long gap of nearly a decade. The Company's total sales and
other operational income during the period under review amounted to Rs. 496.500
Millions (16 Months) as against Rs. 334.900 Millions (12 Months) during
2005-06. The Company was able to register a Cash profit of Rs 60.300 Millions
(16 Months) for the financial year as against the Cash loss of Rs. 25.500
Millions (12 months) in the previous period.
FUTURE PLAN:
With the easing of quota restrictions since 2005, there has been tremendous
growth in the performance of Textile industry. According to WTO, following the
removal of quotas, Indian textile and apparel exports are projected to increase
from US$ 14 Billion to US$ 50 Billion by 2010 representing an annual growth
rate of 29%. The company had positioned itself with installation of
state-of-the-art machinery in its spinning and dyeing besides creating a new
facility in spinning to seize the opportunity arising from the above scenario.
Large International players have identified the Company as an outsourcing
destination.
FINANCIAL (SETTLEMENT OF DUES TO SECURED
CREDITORS):
As promised last year, the company has settled all the outstanding dues to all
the secured creditors. The offer of settlement has been accepted by the
financial Institutions and the payment was also duly made by the company and
the 'No Due' Certificates are also obtained. The Board is happy to state that
there are no secured creditors for the company on date of this report. The
Directors take this opportunity to thank the financial institutions for their
response, support and timely action.
CHANGE IN CAPITAL STRUCTURE AND
PREFERENTIAL ALLOTMENT:
Pursuant to the resolutions passed at the Extra Ordinary General meeting held
on 21st July, 2007, the Authorised Share Capital is increased to Rs.140
Millions. Further, based on the resolutions passed thereat, the Company has
allotted 8,60,000 equity shares at a premium on preferential allotment basis in
accordance with the applicable SEBI Guidelines The in-principle approval of the
Bombay Stock Exchange has been also obtained for listing of the said shares.
Though, in the General Meeting held on 21st July 2007, preferential issue of
18,00,000 equity shares were approved, due to certain technical reasons, allotment
is made only to the extent of 8,60,000 equity shares in the Board Meeting held
on 31st July 2007.Accordingly, a fresh resolution for the preferential
allotment of 9,40,000 equity shares at a premium is proposed at the ensuing
Annual General meeting.
NET
WORTH IS POSITIVE:
Increase in the share capital and share premium due to the allotment of equity
shares to the trade creditors, the networth of the Company has turned to
positive as per the Audited Balance Sheet as on 31st July 2007.
INDUSTRIAL
RELATIONS:
The industrial relations in the Company have been cordial.
Acknowledgement.
The Directors place on record their appreciation of the continued co-operation
and unstinted support extended to the Company by the financial institutions,
the Company's customers, suppliers, employees and shareholders. By Order of the
Board For Thambbi Modern Spinning Mills Limited
FIXED
ASSETS
- Land
- Buildings
- Machinery-General
- Machinery-Electricals
- Generator
Sets
- Vehicles
- Furniture and
Fixtures
- Office
Equipments
- Live Stock
AS PER WEBSITE
PROFILE
Subject
was incorporated as a Private Limited Company in 1977 with the object of taking
over the business of "Thambi Modern Spinners" a partnership firm in
existence from 1973. During 1978, the partnership firm was dissolved and the
entire assets and liabilities of the firm were taken over by TMSL. The Company
became a full fledged Public Limited Company on 11th March, 1994 and the name
of the Company was changed to "THAMBBI MODERN SPINNING MILLS LIMITED"
on 6th May, 1994.
PROMOTERS AND THEIR BACKGROUND
Subject
was originally promoted by Shri N.Ramasamy Udayar. Shri Udayar has also
promoted various textile and other industries in and around
Shri
R.Jagadeesan has promoted Sunrise Jewelries Private Limited, a Private Limited
Company engaged in the manufacture of Gold Jewellery ornaments for 100%
exports. He has also promoted Jagadeesh Apartments Private Limited, a Private
Limited Company engaged in the construction of apartments.
PRODUCT IDENTIES
The Company
started its operation with an installed capacity of 3160 spindles and over the
years increased the capacity to present level of 35,328. The Company also
carried out various modernisation schemes of its plant and machinery to cater
to the domestic and export market requirements with state of the art
technology.
The Company
presently manufactures in addition to gray yarn, various specialty, value added
yarns including cotton melange yarn, melange linen blended yarn, silk blended
yarn and lycra core yarn fancy yarns in spinning and doubling viz, slub,
chenile, etc. Cotton melange yarn is manufactured mainly for exports.
A wide range of
cotton yarns, custon spun to suit the needs of individual customers in export
and domestic markets.
Ring Spun * 100% Cotton Grey in Carded & Combed for Knitting & Weaving.
100% Cotton Melange Yarn in different colors. Blended Yarn * Cotton / Viscose,
Cotton / Hydrophilic, Linen / Cotton, Linen / Viscose, Remi / Cotton, Silk /
Wool. Fancy Yarn * Slub, Neppy & Marl core spun yarn for Knitting &
Weaving. Also multi folded yarn for industrial use. Processed Yarns * Dyed,
Gassed & Mercerised & Dyed for Kintting & Weaving. All are Auto
coned and spliced. Rotor Spun Yarn (Open End) * In different count in grey and
melange in cheese form, it ranges upto NE 20/1.
PRODUCTION CENTERS
|
Units |
Spindles in Nos. |
Prodn/day in kgs |
Product details |
Remarks |
|
Unit I |
27016 |
10030 |
Cotton Yarn,
Synthetic blends, slub yarn, melange yarn & lycra yarn |
Marketed in |
|
Unit II |
3272 |
1700 |
Flax yarn,
cotton yarn and its blends 10s OE yarn |
-do- |
|
Unit III |
5240 |
1680 |
Cotton melange
yarn |
-do- |
|
Dyeing Plant |
450 kgs of
vessel capacity |
1000 |
Yarn and Fibre
dyeing |
Used for our own
consumption |
The
Company is an established unit having a wide network of outlets all over the country
through its brokers. It also has a share in the export market and about 50% of
its yarn is being exported to foreign countries. The Directorate General of
Foreign Trade, Ministry of Commerce, Government of India has recognised the
Company as a Registered Export House.
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.39.55 |
|
|
1 |
Rs.80.44 |
|
Euro |
1 |
Rs.55.49 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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. |
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 |
|