MIRA
INFORM REPORT
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Report Date : |
10.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SOUNDARARAJA MILLS LIMITED |
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Registered Office : |
No. 8, Old No. 36, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.06.1937 |
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Com. Reg. No.: |
18-2576 |
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CIN No.: [Company
Identification No.] |
U17111TN1937PLC002576 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES16772A |
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PAN No.: [Permanent
Account No.] |
AAACS8799R |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturers and Exporters of Synthetic and 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 2500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having excellent
track. 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. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
No. 8, Old No. 36, |
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Tel. No.: |
91-44-24322979 |
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Fax No.: |
91-44-24322974 |
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E-Mail : |
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Website : |
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Administrative
Office : |
" |
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Tel. No.: |
91-451-2430104
/ 2430105 |
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Fax No.: |
91-451-2430593 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. N. Soundarajan |
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Designation : |
Chairman |
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Name : |
Mr. Soundarajan Ranjit |
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Designation : |
Director |
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Address : |
36 Vijayashree, |
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Date of Birth/Age : |
16.07.1963 |
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Date of Appointment : |
01.07.1985 |
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Name : |
Ms. Soundarajan Saroja |
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Designation : |
Vice chairman and Managing Director |
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Address : |
36 Vijayashree, |
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Date of Birth/Age : |
26.04.1936 |
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Date of Appointment : |
22.01.1999 |
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Name : |
Mr. Narayanaraja Muralidharan |
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Designation : |
Director |
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Address : |
19 A, Kasimalli, Dindigul – 624003, |
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Date of Birth/Age : |
09.05.1959 |
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Date of Appointment : |
30.04.2006 |
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Name : |
Ms. Soundarajan Sujatha |
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Designation : |
Director |
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Address : |
36 Vijayashree, |
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Date of Birth/Age : |
13.04.1968 |
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Date of Appointment : |
01.05.1988 |
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Name : |
Mr. Rajagopal Ramakrishnan Arvind |
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Designation : |
Director |
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Address : |
Plot No. 17, Ramalakshmi Nagar, Near Velu Mahal, Dinsigul – 624001, |
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Date of Birth/Age : |
27.10.1969 |
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Date of Appointment : |
30.04.2006 |
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Name : |
Mr. Ramachandran Sridharan |
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Designation : |
Director |
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Address : |
Old No 33, New No. 93, New Agraharam, Dindigul – 624001, |
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Date of Birth/Age : |
04.12.1942 |
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Date of Appointment : |
30.04.2006 |
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Name : |
Mr. Doraisamy Naidu Saketh Ramasamy |
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Designation : |
Director |
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Address : |
Door No. A/21, Vivekananthar Nagar, Dindigul – 624001, |
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Date of Birth/Age : |
01.01.1920 |
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Date of Appointment : |
05.06.1991 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Category |
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Percentage of
Holding |
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Bodies corporate |
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34.00 |
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Directors or relatives of directors |
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63.00 |
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Other top fifty shareholders |
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3.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Synthetic and Cotton
Yarn. |
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Products : |
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Exports : |
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Countries : |
Europe,
Far East and |
PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
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Raw Materials [In Spindles] |
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77664 |
GENERAL INFORMATION
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Customers : |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G. Muralidharan Chartered Accountants |
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Address : |
1 & 2, veerapathran Street, Timber Leaves Apartment, Nungambakkam,
Chennai – 600034, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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969,336 |
Equity Shares |
Rs. 10/- each |
Rs. 9.693
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.693 |
9.693 |
11.293 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
619.564 |
603.504 |
616.631 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
629.257 |
613.197 |
627.924 |
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LOAN FUNDS |
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1] Secured Loans |
944.915 |
880.961 |
607.413 |
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2] Unsecured Loans |
73.627 |
69.501 |
85.752 |
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TOTAL BORROWING |
1018.542 |
950.462 |
693.165 |
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DEFERRED TAX LIABILITIES |
226.500 |
181.500 |
125.000 |
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TOTAL |
1874.299 |
1745.159 |
1446.089 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2326.049 |
1326.673 |
890.587 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.458 |
0.354 |
0.354 |
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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 |
371.239
|
303.248 |
356.626 |
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Sundry Debtors |
140.379
|
128.217 |
138.707 |
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Cash & Bank Balances |
14.955
|
20.728 |
13.083 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
282.927
|
223.980 |
267.786 |
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Total
Current Assets |
809.500
|
676.173 |
776.202 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1253.362
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255.178 |
164.262 |
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Provisions |
14.438
|
13.016 |
71.006 |
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Total
Current Liabilities |
1267.800
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268.194 |
235.268 |
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Net Current Assets |
[458.300]
|
407.979 |
540.934 |
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MISCELLANEOUS EXPENSES |
6.092 |
10.153 |
14.214 |
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TOTAL |
1874.299 |
1745.159 |
1446.089 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1542.789 |
1506.146 |
1371.348 |
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Other Income |
32.317 |
16.848 |
53.675 |
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Total Income |
1575.106 |
1522.994 |
1425.023 |
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Profit/(Loss) Before Tax |
72.176 |
80.795 |
91.276 |
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Provision for Taxation |
52.000 |
64.500 |
20.000 |
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Profit/(Loss) After Tax |
20.176 |
16.295 |
71.276 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
339.667 |
258.042 |
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Total Earnings |
NA |
339.667 |
258.042 |
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Imports : |
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Raw Materials |
NA |
77.918 |
64.296 |
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Machinery |
NA |
103.525 |
40.258 |
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Stores & Spares |
NA |
1.420 |
3.476 |
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Total Imports |
NA |
182.863 |
108.030 |
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Expenditures : |
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Administrative & Selling Expenses |
0.000 |
0.000 |
78.948 |
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Raw Material Consumed |
843.436 |
834.902 |
781.446 |
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Consumption of stores and spares parts |
39.110 |
36.020 |
33.957 |
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Increase/(Decrease) in Finished Goods |
0.000 |
34.353 |
0.000 |
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Salaries, Wages, Bonus, etc. |
96.692 |
98.311 |
128.196 |
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Managerial Remuneration |
5.193 |
9.021 |
0.000 |
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Interest |
79.102 |
56.953 |
47.973 |
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Power & Fuel |
184.011 |
148.702 |
147.636 |
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Depreciation & Amortization |
104.122 |
92.487 |
73.742 |
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Other Expenditure |
151.264 |
131.450 |
41.849 |
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Total Expenditure |
1502.930 |
1442.199 |
1333.747 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
1.28
|
1.07 |
5.00 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.68
|
5.36 |
6.66 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.30
|
4.03 |
5.48 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.11
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0.13 |
0.15 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.63
|
1.99 |
1.48 |
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Current Ratio (Current Asset/Current Liability) |
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0.64
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2.52 |
3.30 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
10015217 |
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Corporate
identity number of the company |
U17111TN1937PLC002576 |
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Name of the
company |
SOUNDARARAJA MILLS LIMITED |
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Address of the
registered office or of the principal place of business in |
No. 8, Old No. 36, |
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Type of charge |
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Particular of
charge holder |
State Bank of 45 II, |
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Nature of
description of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
14.07.2007 |
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Amount secured by
the charge |
Rs. 390.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Minimum of 12.50
% p.a. with monthly rest Other terms as
per the bank’s sanction Terms of
repayment Entire credit
facilities are repayable on demand Margin As per the bank’s
sanction Extent operation
of the charge Modified credit facilities
of Rs. 390.000 Millions Enhanced credit
facilities of Rs. 300 Millions is secured by way of hypothecation of entire
current assets on a first charge basis and block assets on a second charge
basis |
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Short particulars
of the property charged |
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Date of latest
modification prior to the present modification |
08.01.2007 |
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Particulars of
the present modification |
Existing credit
facility of Rs. 90 Millions is enhanced to Rs. 390 Millions by way of
available of an additional limits of Rs 300 Millions as follows Working
capital : Rs. 140 Millions Letter of credit
Rs. 150 Millions Bank Guarantee
Rs. 10 Millions Thus the total
limit stands as Rs. 390 Millions |
Fixed Assets
- Land
- Buildings
- Plant and Machinery
- Electrical Machinery
- Furniture and Fittings
- Vehicles
AS PER WEBSITE
PROFILE
The Textile Industry is more than 150 years old in
PRODUCTS
SOUNDARARAJA GROUP is engaged in production of 100% Cotton
combed knitting, weaving and gassed Yarn both Single and Double(TFO) on
normal cones and dye cheese, Polyester / Cotton blended Grey Yarn, 100%
Polyester Grey Yarn, 100% Viscose Grey Yarn, Polyester / Viscose Blended Grey
Yarn, Special Crepe Steam Set Grey Yarn, Polyester Spun + Filament twisted
yarn, Knitted and Woven Grey Fabrics.
Specilization and innovation have led to a high level of
know how in the field of Synthetic Yarn and particularly Crepe yarns involving
very high TPM (Twist per Meter) both in 100% Polyester, Polyester Viscose
blends and 100% Viscose Yarns. However high the requirements may be,
Soundararaja will offer innovative solutions to meet specific customer needs.
In order to augment export cotton yarn market from its
present level to the international standards they have expended a very
substantial amount for modernisation and installed latest Ultra modern
machineries such as Fibre Contamination control system in Blowroom, Elitwist,
Compact yarn machinery, Murata Twin Spinner and Yarn Singeing machine etc.
Their prime motto is the "Customers Satisfaction"
PRODUCTION
FACILITY
The production facilities build up area of 1,06,000
Square Meters with a workforce of 1500 employees, Producing 9.48 Million
Kilograms of Cotton yarn, 1.35 Million Kilograms of Poly Cotton Yarn and 8.31
Million Kilograms of Synthetic yarn per year.
MARKETING
CENTERS
In
The Mills outlets are in Mumbai, Ichal Karanji,
Kolkatta,
Abroad :
EXPORTS
Their dedication, commitment to produce quality cotton yarn
and growing customer needs in cotton yarn around the world, the mill has
emerged as a lean, agile and supremely fit corporation in the facade of
economic liberalization and globalization.
EXPORT
PERFORMANCE
2003 - 2004 INR 310 Million
2004 - 2005 INR 440 Million
2005 - 2006 INR 530 Million
Their yarn is exported to Europe,
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.40.58 |
|
|
1 |
Rs.82.22 |
|
Euro |
1 |
Rs.55.97 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
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 |
|