MIRA
INFORM REPORT
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Report Date : |
17.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SREE NARASIMHA TEXTILES PRIVATE LIMITED |
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Registered Office : |
P B No. 02, Sulur, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.02.1976 |
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Com. Reg. No.: |
181-755 |
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CIN No.: [Company
Identification No.] |
U17111TZ1976PTC000755 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS03148F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Cotton Yarn |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 3800000 |
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Status : |
Excellent |
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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 and a part of
Premier Group. The company is progressing well. 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. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
P B No. 02, Sulur, |
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Tel. No.: |
91-422-2687227 / 2687459 |
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Fax No.: |
91-422-2688342 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. K V Srinivasan |
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Designation : |
Managing Director |
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Address : |
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Date of Birth/Age : |
13.03.1961 |
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Date of Appointment : |
07.06.1991 |
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Name : |
Mr. K L Varadarajan |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
16.08.1932 |
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Date of Appointment : |
10.02.1976 |
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Name : |
Mr. J Venkatesam Chowdhury |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
29.06.1962 |
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Date of Appointment : |
27.04.1987 |
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Name : |
Mr. Shridhar Varadaraj |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
24.11.1969 |
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Date of Appointment : |
30.09.1994 |
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Name : |
Mr. L Ravisankar |
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Designation : |
Director |
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Address : |
Anugraha, |
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Date of Appointment : |
07.06.1991 |
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Name : |
Mr. V R Sivakumar |
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Designation : |
Director |
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Address : |
221 A, Race Course, |
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Date of Birth/Age : |
23.10.1948 |
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Date of Appointment : |
26.09.1992 |
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Name : |
Mr. D Rajendran |
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Designation : |
Director |
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Address : |
# 233 Tea Estate, Race Course, |
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Date of Birth/Age : |
17.12.1948 |
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Date of Appointment : |
28.09.2001 |
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Name : |
Mr. V S Soundararajan |
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Designation : |
Additional Director |
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Address : |
3/45 Premier Mills Manager’s Qtrs, Pulankinar PO, |
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Date of Birth/Age : |
14.11.1943 |
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Date of Appointment : |
24.03.2007 |
KEY EXECUTIVES
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Name : |
Mr. M R Thigarajan |
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Designation : |
Company Secretary |
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Address : |
C-18, United Nagar, Veerakeralam Post, |
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Name : |
Mr. G. Ramachandran |
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Designation : |
Company Secretary |
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Address : |
2, ramanuja Nagar, Uppilipalayam, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Sarojini Varadarajan |
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4646 |
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K V Srinivasan |
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5309 |
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Sridhar Varadaraj |
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6309 |
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Minor Varun Srinivasan By M & G Shanthi Srinivasan |
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1000 |
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Total |
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17264 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cotton Yarn |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Cotton Yarn |
Spindles |
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49536 |
GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
Sree Narasimha Holdings Private Limited U70101TZ2002PTC010117 Lakshmi Narasimha Holdings Private Limited U65993TZ2002PTC010400 SNT Holdings Private Limited U65993TZ2002PTC010415 Karadivavi Holdings Private Limited U65993TZ2002PTC010416 Lakshmi Narasimha Holdings [ U07010TZ2003PTC010647 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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30,000 |
Equity Shares |
Rs. 100/- each |
Rs. 3.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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17,264 |
Equity Shares |
Rs. 100/- each |
Rs. 1.726
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1.726 |
1.726 |
1.726 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
968.319 |
801.497 |
697.113 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
970.045 |
803.223 |
698.839 |
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LOAN FUNDS |
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1] Secured Loans |
794.754 |
879.142 |
457.729 |
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2] Unsecured Loans |
1.854 |
1.764 |
1.766 |
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TOTAL BORROWING |
796.608 |
880.906 |
459.495 |
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DEFERRED TAX LIABILITIES |
164.485 |
85.645 |
37.015 |
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TOTAL |
1931.138 |
1769.774 |
1195.349 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1311.384 |
1338.044 |
656.566 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
73.500 |
23.500 |
23.500 |
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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 |
326.844
|
312.663 |
271.966 |
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Sundry Debtors |
19.851
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18.438 |
9.072 |
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Cash & Bank Balances |
95.674
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14.217 |
3.959 |
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Other Current Assets |
2.426
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3.526 |
11.928 |
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Loans & Advances |
210.122
|
148.196 |
366.307 |
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Total
Current Assets |
654.917
|
497.040 |
663.232 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
106.907
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86.873 |
145.995 |
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Provisions |
1.756
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1.937 |
1.954 |
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Total
Current Liabilities |
108.663
|
88.810 |
147.949 |
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Net Current Assets |
546.254
|
408.230 |
515.283 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1931.138 |
1769.774 |
1195.349 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1047.991 |
843.713 |
683.461 |
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Other Income |
18.117 |
8.361 |
11.827 |
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Total Income |
1066.108 |
852.074 |
695.288 |
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Profit/(Loss) Before Tax |
246.238 |
162.060 |
108.710 |
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Provision for Taxation |
79.215 |
58.440 |
37.527 |
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Profit/(Loss) After Tax |
167.023 |
103.620 |
71.183 |
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Earnings in Foreign Currency : |
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Export Earnings |
941.269 |
752.624 |
609.806 |
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Total Earnings |
941.269 |
752.624 |
609.806 |
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Imports : |
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Raw Materials |
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74.998 |
36.601 |
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Capital Goods |
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43.573 |
128.679 |
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Stores & Spares |
|
2.179 |
4.096 |
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Total Imports |
122.577 |
120.750 |
169.376 |
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Expenditures : |
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Raw Material Consumed |
0.000 |
315.840 |
295.285 |
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Consumption of stores and spares parts |
0.000 |
23.915 |
16.690 |
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Salaries, Wages, Bonus, etc. |
0.000 |
49.641 |
34.448 |
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Interest |
32.473 |
19.869 |
3.804 |
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Increase/(Decrease) in Finished Goods |
0.000 |
[10.625] |
3.789 |
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Repairs |
0.000 |
10.557 |
7.578 |
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Power & Fuel |
0.000 |
57.558 |
84.781 |
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Depreciation & Amortization |
155.201 |
125.164 |
45.231 |
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Other Expenditure |
632.196 |
98.095 |
94.972 |
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Total Expenditure |
819.870 |
690.014 |
586.578 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
15.67
|
12.16 |
10.24 |
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Net Profit Margin (PBT/Sales) |
(%) |
23.50
|
12.28 |
15.91 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
12.52
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8.83 |
8.24 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.20 |
0.16 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.93
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1.21 |
0.87 |
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Current Ratio (Current Asset/Current Liability) |
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6.03
|
5.60 |
4.48 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Machinery
- Electrical Machinery
- Office Equipments and Furniture
- Live Stock
- Vehicles
Bankers Charges
Report as per Registry
|
Name of the company |
SREE NARA SIMHA TEXTILES
PRIVATE LIMITED |
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Presented By |
K. L.
Varadarajan – Director |
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1) Date and description of instrument creating the change |
05.03.2005 Deed of
Hypothecation for Rs. 325 Millions dated 05.03.2005 Deed of Hypothecation
for Rs. 100 Millions dated 05.03.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 425 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 |
First pari –
passu charge over the Company’s plant and machinery alongwith IDBI Bank. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
operates as security to secure the non-revolving term loans aggregating to
Rs. 425 Millions sanctioned by The Bank of Nova Scotia to the Company. |
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5) Name and Address and description of the person entitled to the charge. |
The Bank of |
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6) Date and brief description of instrument modifying the charge |
-- |
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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. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U17111TZ1976PTC000755 |
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Name of the
company |
SREE NARA SIMHA TEXTILES PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
P B No. 02, Sulur, |
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Type of charge |
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Particular of
charge holder |
Punjab National
Bank |
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Date of
instrument Creating the charge |
08.06.2007 |
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Amount secured by
the charge |
Rs. 306.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 11.00 % with
monthly rest to be reset every year after a period of one year form the date
of first disbursements. Terms of
repayment Repayable in 32
quarterly installments of Rs. 9.563 Millions. The repayment to commence after
2 years form the date of first disbursement. Margin 20 % |
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Contingent Liabilities |
Rs in Millions |
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Estimated amount of contracts to be executed
on Capital Accounts and not provided for |
96.530 |
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Foreign Bills Discounted with Banks and
remaining outstanding |
128.487 |
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Disputed entry tax liability |
1.839 |
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.39.31 |
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|
1 |
Rs.80.19 |
|
Euro |
1 |
Rs.55.86 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
8 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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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 |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|