MIRA INFORM REPORT

 

Report Date :

08.09.2007

 

IDENTIFICATION DETAILS

 

Name :

PREMIER MILLS PRIVATE LIMITED

 

 

Formerly Known As :

PREMIER FINE YARNS PRIVATE LIMITED

 

 

Registered Office :

244, A.T.D. Street, Race Course, Coimbatore-641018, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

16.11.1994

 

 

Com. Reg. No.:

181-5511

 

 

CIN No.:

[Company Identification No.]

U17111TZ1994PTC005511

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CMBP03170G

 

 

PAN No.:

[Permanent Account No.]

AABCP5924C

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Yarn, Cotton Fabrics, Knitted Fabrics.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4400000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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 company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

244, A.T.D. Street, Race Course, Coimbatore-641018, Tamilnadu, India

Tel. No.:

91-422-2221223

Fax No.:

91-422- 2221225

E-Mail :

secretary@premiermills.com

Website :

http://www.premiermills.com

 

 

DIRECTORS

 

Name :

Mr. R Jagdish Chandran

Designation :

Chairman and Managing Director

Address :

244, A.T.D. Street, Race Course, Coimbatore-641018, Tamilnadu, India

Date of Birth/Age :

06.03.1941

Date of Appointment :

16.11.1994

 

 

Name :

Mr. D. Rajendran

Designation :

Managing Director

Address :

233, Tea Estate, Race Course, Coimbatore-641018, Tamilnadu, India

Date of Birth/Age :

17.12.1948

Date of Appointment :

16.11.1994

 

 

Name :

Mr. K V Srinivasan

Designation :

Managing Director

Address :

# 3 VP, Naidu Street, Avanashi, Coimbatore-641018, Tamilnadu, India

 

 

Name :

Mr. Sabitha Chandran

Designation :

Director

Address :

245, A.T.D. Street, Race Course, Coimbatore-641018, Tamilnadu, India

Date of Birth/Age :

07.04.1942

Date of Appointment :

03.08.2002

 

 

Name :

Mr. Sridhar Varadaraj

Designation :

Director

Address :

# 9 VP Naidu Street, Coimbatore-641018, Tamilnadu, India

Date of Birth/Age :

24.11.1969

Date of Appointment :

18.06.2003

 

 

Name :

Ms. Shanthi Srinivasan

Designation :

Director

 

 

Name :

Ms. Kavitha Varadaraj

Designation :

Managing Director

 

 

Name :

Mr. V S Soundarajan

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. M R Thiagarajan

Designation :

Company Secretary

Address :

C-18, United Nagar, Veerakeralam Post, Coimbaotre-641007, Tamilnadu, India

Date of Birth/Age :

15.09.1954

 

 

Name :

G. Ramachandran

Designation :

Company Secretary

Address :

2 Ramanuja Nagar, Uppilipalayam, Coimbatore – 641 015, Tamilnadu, India

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Equity Shares

 

Premier Textiles Private Limited

23970

R Jagdish Chandran

1335

Mr. Sabitha Chandran

1335

Total

26640

 

 

Preference Shares

 

Mr. R Jagdish Chandran

2700

Mr. Sabitha Chandran

1800

Mr. K V Srinivasan

1125

Mrs. Shanthi Srinivasan

1125

Mr. Sridhar Varadaraj

1125

Mrs. Kavitha Varadaraj

1125

Total

9000

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Yarn, Cotton Fabrics, Knitted Fabrics.

 

 

Products :

v      Yarn

v      Cotton Fabrics

v      Knitted Fabrics

 

 

GENERAL INFORMATION

 

No. of Employees :

 

 

 

Bankers :

v      Andhra Bank, 17, Mill Road, Coimbatore-641001, Tamilnadu, India

v      Bank of Baroda, CFS Branch, 82, Bank Road, 2nd Floor, Coimbatore-641018, Tamilnadu, India

v      Union Bank of India, Oppanakara Street, Coimbatore-641001, Tamilnadu, India

v      Bank of Nova Scotia

v      Export Import Bank of India

v      Punjab National bank

v      Union Bank of India

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

M S Jagannathan and Visvanathan

Chartered Accountants

Address :

6 D B Road, R S Puram, Coimbatore – 641 002, Tamilnadu, India

 

 

Holding Company:

PTL Textiles Coimbatore Private Limited

 

 

Subsidiary Companies:

v      Premier Cotton Textiles Private Limited

v      Begalur Holdings Private Limited

v      PPL Holdings Private Limited

v      Glendale Holdings Private Limited

v      Perungudi Wind Farms Private Limited

v      Primero Intimates Private Limited

 

 

Other Related Companies:

v      PGF Holdings (CBE) Private Limited

v      Holiday Travels Private Limited

v      Coimbatore Polytex Private Limited

v      Coimbatore Twisters Private Limited

v      Capricom General Finance Private Limited

v      Lakshmi Narasimha Textiles Private Limited

v      Premier Cotton Textiles

v      Premier Evolvics Private Limited

v      Premier Spinning and Weaving Mills Private Limited

v      Premier Polyweaves Private Limited

v      Prima Products Private Limited

v      Sree Narasimha Textiles Private Limited

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000

Equity Shares

Rs.100/- each

Rs.5.000 millions

10000

Preference Shares

Rs.10/- each

Rs.0.100 millions

 

Total

 

Rs.5.100 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

26640

Equity Shares

Rs.100/- each

Rs.2.664 millions

9000

Preference Shares

Rs.10/- each

Rs.0.090 millions

 

Total

 

Rs.2.754 millions

 

 

 

 

 

 

 

 FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

2.754

2.754

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

1115.247

997.245

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

1118.001

999.999

LOAN FUNDS

 

 

 

1] Secured Loans

 

2080.392

841.592

2] Unsecured Loans

 

7.722

0.000

TOTAL BORROWING

 

2088.114

841.592

DEFERRED TAX LIABILITIES

 

213.557

153.924

 

 

 

 

TOTAL

 

3419.672

1995.515

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

2381.692

1227.257

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

93.810

94.464

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

391.182

400.703

 

Sundry Debtors
 

39.144

21.558

 

Cash & Bank Balances
 

141.363

34.195

 

Other Current Assets
 

9.191

11.657

 

Loans & Advances
 

419.798

298.808

Total Current Assets
 

1000.678

766.921

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

49.237

86.962

 

Provisions
 

7.271

6.165

Total Current Liabilities
 

56.508

93.127

Net Current Assets
 

944.170

673.794

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

3419.672

1995.515

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2007

31.03.2006

Sales Turnover

 

1536.388

1251.854

Other Income

 

15.646

23.593

Total Income

 

1552.034

1275.447

 

 

 

 

CHANGE IN STOCK

 

56.006

12.460

 

 

 

 

Profit/(Loss) Before Tax

 

178.305

263.338

Provision for Taxation

 

61.258

98.532

Profit/(Loss) After Tax

 

117.047

164.806

 

 

 

 

Export Value

 

1434.602

1184.029

 

 

 

 

Imports :

 

 

 

 

Raw Materials

 

511.191

272.390

 

Stores & Spares

 

18.801

12.097

 

Capital Goods

 

125.153

73.302

 

Others

 

0.000

0.000

Total Imports

 

655.145

357.789

 

 

 

 

Expenditures :

 

 

 

 

Total Expenses

 

1159.024

881.901

 

Financial Charges

 

76.852

23.659

 

Depreciation

 

193.859

119.009

Total Expenditure

 

1429.735

1024.569

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2007

31.03.2006

PAT / Total Income

(%)
 

7.54

12.92

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

11.61

21.04

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

5.27

13.21

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.16

0.26

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.92

0.93

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.71

8.24

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE:

 

The subject was formerly known as “Premier Fine Yarns Private Limited” The subject has changed to its present name i.e. “Premier Mills Private Limited” with effect from 18.01.2007, as per registry vide Letter No. S.21/5511/2007 dated 18.01.2007

 

 

Form 8 Particular for creation or modification of charges 

 

Corporation identity number or foreign company registrations number of the company 

U17111TZ1994PTC005511

Name of the company

PREMIER FINE YARNS PRIVATE LIMITED

Address

244, A.T.D. Street, Race Course, Coimbatore-641018, Tamilnadu, India

This Form is for

Modification of charge

Type of Charges

Equitable mortgage or mortgage of property by depositing the title deeds.

Particular of the charge holder 

Union Bank of India

Oppanakara Street, Coimbatore-641001, Tamilnadu, India

Amount Secure by the charge

Rs.140.000 millions

Description of the property charge whether it is a charge on

Immovable properties

Stock in trade

Book debts

Brief description of instrument modifying the charge

As per attachment – hypothecation agreement and memorandum of entry both dated 11.02.2006

Particulars of the present modification  

Amount secured by hypothecation increased from Rs.110 millions to Rs.140 millions. Also additionally secured by a pari passu charge on the immovable properties.

 

 

Name of the company

PREMIER FINE YARNS PRIVATE LIMITED

Presented By

Mr. R Jagdish Chandran – Chairman and Managing director

1) Date and description of instrument creating the change

29.01.2001

Instrument of hypothecation of moveable machinery

2) Amount secured by the charge/amount owing on the securities of charge

Rs.210.000 millions

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

All plant and machinery mentioned in the annexure to the schedule to the instrument of hypothecation of movable machinery dated 29.01.2001.

4) Gist of the terms and conditions and extent and operation of the charge.

The charge operates as security for the due repayment and discharge by the company to Andhra Bank if its Term Loan of Rs.210 millions sanctioned to the company.

5) Name and Address and description of the person entitled to the charge.

Andhra Bank

17, Mill Road

Coimbatore-641001

6) Date  and brief description of instrument modifying the charge

24.03.2001

No instrument. A mortgage by deposit of title deeds by constructive delivery was created by the company in favour of Andhra Bank in respect of the immovable properties of the company situate at Pulankinar as security on a first charge pari passu basis, interalia, for the due repayment and discharge by the company to Andhra Bank of its Term loan of Rs.210 millions grated by them to the company. The immovable properties are more clearly and particularly described in the Annexure hereto.

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.

The company has created the equitable mortgage to additionally secure the Term Loan of Rs.210 millions sanctioned by Andhra Bank on a first charge pari passu basis.

 

Website Details:

 

Company Profile  

 

Premier is a large textile conglomerate encompassing spinning, weaving, dyeing and finishing, garments and home textiles having its corporate office at Coimbatore in Tamilnadu. With an annual turnover of around Rs.750 Crorers, the Premier group exports to over 50 different countries worldwide.


Premier Mills Private Limited manufacturers’ fine and superfine yarn entirely for the export market. Its state-of-the-art unit is located near Udumalpet in Coimbatore District.


Premier Polyweaves Private Limited is a manufacturer of top of the line home textile products for some of the leading brands. It has a modern weaving unit with wide-width looms at Pollachi in Coimbatore District and a sophisticated textile processing unit at Perundurai in Erode District.

 

Premier Mills Group

 

Mills

Capacity

Counts spun (NE)

Premier Fine Yarns Limited
100% EOU
(ISO 9002 certified)

58,704 spindles

Gassed Yarns:
Ne 40/2 C
Ne 74/2 C
Ne 80/2 C
Ne 100/1 C & up

40/1 C kntg.
74/2 C wvg.
80/1 C wvg.
80/2 C wvg.
94/2 C wvg.
100/1C wvg.
100/2C wvg.
120/2C wvg.
140/2C wvg.

Premier Polytronics Limited.,
(Textile Division) 100% EOU
(ISO 9002 certified)

20,160 spindles

30/1C kntg.

Sree Narasimha Textiles Limited.,
100% EOU (ISO 9002 certified)

27,216 spindles

36/2 C wvg.
40/2 C wvg.
50/1 C wvg.
50/2 C wvg.
56/2 C wvg.
105/2C wvg.
110/2C wvg.

Prime Cotton Textiles
100% EOU
(ISO 9002 certified)

29,392 spindles

20/1 C kntg.
24/1 C kntg.
40/1 C wvg.
40/2 C wvg.

Prima Products Private Limited

1,176 rotors

6s - 10s & 16s O.E

Lakshmi Narasimha Textiles

792 rotors

6s - 10s O.E.

 

 

Premier Fine Yarns Private Limited the total installed capacity of the group is 180,000 spindles, 1968 rotors and 450 looms including the latest Sulzer Projectile P7200 looms and Picanol Airjet looms. The company also has a processing capacity of 100,000 metres per day including bleaching, dyeing and printing of cotton and synthetic woven fabrics In knits, the group has a capacity of 5 tons per day of Single jersey, Interlock and Rib Fabrics.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 40.71

UK Pound

1

Rs. 82.26

Euro

1

Rs. 55.66

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

45

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions