MIRA
INFORM REPORT
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Report Date : |
04.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SABARE INTERNATIONAL LIMITED |
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Registered Office : |
SF. No. 6/1, Nedungur Village, Near V S B Engineering College, Karudayampalayam,
K Paramathi, Karur – 639 111, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.10.2003 |
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Com. Reg. No.: |
18-51728 |
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CIN No.: [Company Identification No.] |
U17297TN2003PLC051728 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CHES17309F |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Made-ups and exporting home furnishings. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit
Limit : |
USD 5000000 |
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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 an established company and faring well. Financial position is good. Trade relations are fair. The company is doing well. It can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long
– run. |
INFORMATION PARTED
BY
|
Name : |
Mr. Krishna Kumar |
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Designation : |
Account Manager |
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Date : |
04.06.2008 |
LOCATIONS
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Registered Office / Factory : |
SF. No. 6/1, Nedungur Village, Near V S B Engineering College,
Karudayampalayam, K Paramathi, Karur – 639 111, Tamil Nadu, India |
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Tel. No.: |
91-4324-232681 / 2660000 |
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Fax No.: |
91-4324-259635 / 2660027 |
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E-Mail : |
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Website : |
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Corporate Office : |
14, Kamarajapuram East, Karur – 639002, Tamilnadu, India |
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Tel. No.: |
91-4324-232681 |
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Fax No.: |
91-4324-259635 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Swaminathan Susindran |
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Designation : |
Chairman cum Managing Director |
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Address : |
No. 60A, Vadivelnagar, L N S Post, Erode Road, Karur – 639002,
Tamilnadu, India |
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Date of
Birth/Age : |
28.05.1963 |
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Date of
Appointment : |
09.10.2003 |
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E-Mail: |
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Name : |
Ms. Susindran Suganthi |
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Designation : |
Whole Time Director |
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Address : |
No. 60A, Vadivelnagar, L N S Post, Erode Road, Karur – 639002,
Tamilnadu, India |
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Date of
Birth/Age : |
23.01.1971 |
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Date of
Appointment : |
09.10.2003 |
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Name : |
Mr. Palanisamy Shanmugasundaram |
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Designation : |
Director |
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Address : |
No. 4, Green Lands, Near Tansi Covai Road, Karur – 639002, Tamilnadu,
India |
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Date of
Birth/Age : |
10.08.1948 |
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Date of
Appointment : |
15.10.2003 |
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E-Mail: |
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Name : |
Mr. Ramasamy Swaminathan |
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Designation : |
Director |
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Address : |
No. 60A, Vadivelnagar, L N S Post, Erode Road, Karur – 639002,
Tamilnadu, India |
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Date of
Birth/Age : |
15.04.1933 |
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Date of
Appointment : |
15.10.2003 |
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Name : |
Mr. S. Yasodha |
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Designation : |
Director |
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Address : |
No. 4, Green Lands, Near Tansi Covai Road, Karur – 639002, Tamilnadu,
India |
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Date of Birth/Age : |
03.02.1955 |
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Date of Appointment : |
15.10.2003 |
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Name : |
Mr. K. V. Ramakrishna |
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Designation : |
Director |
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Address : |
Flat 1A, Regency A Tower, Edenwoods, Chitalsar Manpada, Thane –
400601, Maharashtra, India |
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Date of Birth/Age : |
29.10.1969 |
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Date of Appointment : |
08.06.2005 |
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Name : |
Mr. Janat Ghanshyam Bhai Shah |
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Designation : |
Director |
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Address : |
419, IIM Campus, Bannerghatta Road, IIMB Post, Mico Layout, Bangalore
– 560 076, Karnataka, India |
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Date of Birth/Age : |
22.09.1958 |
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Date of Appointment : |
21.06.2007 |
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Name : |
Mr. Chinni Krishnan Ranganathan |
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Designation : |
Director |
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Address : |
Plot No. 58/5, Door No. 5, Dr. Sheshadri Avenue, Injambakkam, Chennai
- 600 041, Tamil Nadu, India |
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Date of Birth/Age : |
01.05.1960 |
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Date of Appointment : |
21.06.2007 |
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Name : |
Mr. Melpakkam Venkatraman |
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Designation : |
Director |
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Address : |
Sabare Garments, 14, Kamarajapuram East, Karur – 639 002, Tamil Nadu,
India |
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Date of Birth/Age : |
07.03.1952 |
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Date of Appointment : |
09.10.2003 |
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Name : |
Mr. Venkata Ramkrishna Kunisetty |
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Designation : |
Director |
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Address : |
Flat 1A, Regency A Tower, Edenwoods GA Marg, Chitalsar Manpada, Thane
West – 400 601, Maharashtra, India |
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Date of Birth/Age : |
29.10.1969 |
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Date of Appointment : |
08.06.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (As on
31.03.2007):- |
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No. of Shares |
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Equity Shareholders |
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Mr. S Yas Odha |
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500000 |
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Mr. S Susindran |
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6799000 |
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Mr. R Awaminathan |
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100000 |
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Mr. M Venkatraman |
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100000 |
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Mrs. S Suganthi |
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6250000 |
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Mr. S Sathya |
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1000 |
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Mrs. S lakshmi |
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750000 |
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India Growth Fund |
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1000 |
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Preference Shareholders
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India Growth Fund |
|
29999000 |
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Total
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44500000 |
Equity Shares Breakup (Percentage of Total Equity): (As on 31.03.2007):-
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Sr No. |
Category |
Percentage |
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1 |
Venture capital |
0.01 |
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2 |
Directors or relatives of directors |
99.99 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business
: |
Manufacturers of Made-ups and exporting home furnishings. |
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Products : |
·
Pillow Shells ·
Pillow
Machine ·
Made-Ups Generic Names of
Three Principal Products of company is as under : Item Code No. :
85249009.10 Product
Description : Made ups |
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Exports : |
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Countries : |
USA |
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Imports : |
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Countries : |
China |
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Terms : |
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Purchasing : |
L/C, T/T |
PRODUCTION STATUS (As on 31.03.2005):-
|
Particulars |
|
Unit |
Actual
Production |
|
Made ups |
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Nos. |
4045584 |
GENERAL
INFORMATION
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Customers: |
Retailers |
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No. of Employees
: |
About 2000 |
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Bankers : |
·
Canara Bank Address: 37, Covai Road, Karur – 639 002,
Tamil Nadu, India Facilities:
(L/C, P/C) ·
HDFC Bank
Limited Address: HDFC Bank House Senapati Bapat Marg, Lower Parel (West),
Mumbai – 400 013, Maharashtra, India ·
State Bank of
India, Address: Commercial Branch, Tiruchirapalli
– 620001 |
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Banking
Relations : |
Good |
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Auditors : |
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Name 1 : |
K. S. Palanisamy & Company Chartered Accountants |
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Name 2: |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Shanmugha Manram, 41 Race Course, Coimbatore – 641 018, Tamil Nadu,
India |
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Associates/Subsidiaries : |
Sabare USA Inc |
CAPITAL STRUCTURE
(As on 31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14501000 |
Equity Shares |
Rs. 10/- each |
Rs.145.010 millions |
|
29999000 |
Preference Shares |
Rs. 10/- each |
Rs.299.990 millions |
|
|
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Total |
Rs.445.000
million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14501000 |
Equity Shares |
Rs. 10/-
each |
Rs.145.010
millions |
|
29999000 |
Preference Shares |
Rs. 10/-
each |
Rs.299.990
millions |
|
|
|
Total |
Rs.445.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
445.000 |
445.000 |
145.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
478.344 |
319.424 |
131.807 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
923.344 |
764.424 |
276.807 |
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LOAN FUNDS |
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1] Secured Loans |
1107.633 |
802.281 |
379.991 |
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2] Unsecured Loans |
0.000 |
0.000 |
19.900 |
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TOTAL BORROWING |
1107.633 |
802.281 |
399.891 |
|
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DEFERRED TAX LIABILITIES |
108.175 |
73.396 |
0.427 |
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TOTAL |
2139.152 |
1640.101 |
677.125 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
854.799 |
547.495 |
52.336 |
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Capital work-in-progress |
25.121 |
126.802 |
66.707 |
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INVESTMENT |
371.122 |
119.997 |
9.801 |
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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 |
316.211
|
197.970
|
111.567 |
|
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Sundry Debtors |
422.950
|
748.586
|
576.330 |
|
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Cash & Bank Balances |
214.155
|
75.752
|
37.751 |
|
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Other Current Assets |
56.871
|
29.557
|
42.424 |
|
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Loans & Advances |
191.693
|
171.471
|
135.213 |
|
Total
Current Assets |
1201.880
|
1223.336
|
903.285 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Current Liabilities |
147.003
|
264.277
|
265.594 |
|
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Provisions |
166.767
|
120.382
|
89.900 |
|
Total
Current Liabilities |
313.770
|
384.659
|
355.494 |
|
|
Net Current Assets |
888.110
|
838.677
|
547.791 |
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
7.130 |
0.490 |
|
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TOTAL |
2139.152 |
1640.101 |
677.125 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2322.832 |
2238.598 |
1333.301 |
|
|
Other Income |
100.201 |
90.258 |
73.184 |
|
|
Total Income |
2423.033 |
2328.856 |
1406.485 |
|
|
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|
|
|
|
Profit/(Loss) Before Tax |
251.072 |
299.255 |
202.413 |
|
|
Provision for Taxation |
83.757 |
100.468 |
77.215 |
|
|
Profit/(Loss) After Tax |
167.315 |
198.787 |
125.198 |
|
|
|
|
|
|
|
|
Export Value |
2246.162 |
2227.023 |
1333.301 |
|
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|
|
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Import Value |
NA |
NA |
4.371 |
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
1600.693 |
1536.286 |
971.171 |
|
|
Salaries, Wages, Bonus, etc. |
120.548 |
59.558 |
20.011 |
|
|
Managerial Remuneration |
9.685 |
3.360 |
3.360 |
|
|
Payment to Auditors |
0.515 |
0.685 |
0.197 |
|
|
Interest |
62.265 |
26.735 |
14.696 |
|
|
Insurance Expenses |
6.263 |
2.925 |
1.330 |
|
|
Power & Fuel |
23.086 |
13.777 |
2.385 |
|
|
Depreciation & Amortization |
50.897 |
32.224 |
7.643 |
|
|
Other Expenditure |
298.009 |
354.051 |
183.279 |
|
Total Expenditure |
2171.961 |
2029.601 |
1204.072 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
6.91 |
8.53 |
8.90 |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
10.80
|
13.36
|
15.18 |
|
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|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.44
|
15.76
|
19.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.39
|
0.73 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.55
|
1.55
|
2.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.18
|
3.18
|
2.54 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 9th October, 2003 under Part
IX of the Companies Act, 1956 by taking over all the assets and liabilities of
the erstwhile partnership firm Sabare Garments. The company is mainly engaged in the business of exporting home
furnishings.
FIXED ASSETS:
·
Land – freehold
·
Buildings
·
Plant and
Machinery
·
Office
Equipments
·
Electrical
Equipments,
·
Electrical
Fittings and
·
Furniture and
Fixtures,
·
Computers,
·
Intangible Assets
– Software, Vehicles
FORM 8:-
|
Corporation identity number or foreign
company registrations number of the company
|
U17297TN2003PLC051728 |
|
Name of the company |
SABARE INTERNATIONAL LIMITED |
|
Address |
SF. No. 6/1, Nedungur Village, Near V S B Engineering College,
Karudayampalayam, K Paramathi, Karur – 639 111, Tamil Nadu, India |
|
This Form is for |
Creation of the
Charge |
|
Type of Charges |
Movable property |
|
Particular of the charge holder |
CIN:
L65920MH1994PLC080618 HDFC Bank
Limited Address: HDFC
Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013,
Maharashtra, India Email ID: srinivasan.venkataraman@hdfcbank.com
|
|
Nature or description of the instrument
creating charge |
Memorandum relating to hypothecation of
Machinery dated 17th September, 2007. |
|
Date of the instrument creating charge |
17.09.2007 |
|
Amount Secure by the charge |
Rs. 227.700
millions |
|
Brief of the principal terms and
conditions and extent and operation of the charge |
Rate
of interest: Any such rate as may be advised to the
company from time to time in respect of the credit facilities. Terms
of Repayment: Term loan I of Rs. 101.600 millions
-Unless demanded earlier the loan is repayable in Five and half year
repayable in nineteen equal quarterly installments including one year
moratorium. Term loan II of Rs. 126.100 millions –
Unless Demanded earlier the loan is repayable in Five and half year repayable
in nineteen equal quarterly installments including one year moratorium. Margin: As may be prescribed by the bank from time
to time for the credit facilities. Extent
and operation of the charge: Hypothecation by way of first Exclusive
charge in favour of HDFC Bank Limited on all movable plant and machinery of
the Company both present and future. |
|
Short particulars of the Property
charged |
Hypothecation by way of First Exclusive
Charge in favour of HDFC Bank Limited on all movable Plant and Machinery of
the Company both present and future. |
|
Name of the
company |
SABARE INTERNATIONAL LIMITED |
|||||||||
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Presented By |
Director |
|||||||||
|
1) Date and
description of instrument creating the change |
i. Agreement of
Loan for overall limit [Form C – 1] ii. Agreement of
Hypothecation of goods and assets [Form C – 2] iii. Agreement of
pledge of goods and assets [Form C – 3] iv. Letter
regarding the grant of individual limits within the overall limit [Form C -5 ] v. Confirmation
letter with regard to delivery of machines all dated 05.08.2005. |
|||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 90 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 |
First charge by
way of hypothecation of the following machineries,
|
|||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
1. Rate of Interest
: 1.5% below SBAR [10.25%] effective rate being 8.75% 2. Repayable in 24
quarterly installments commencing from the quarter ended
December 2006 |
|||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
State Bank of
India, Commercial Branch, Tiruchirapalli – 620001 |
|||||||||
|
6) Date and brief description of instrument
modifying the charge |
Letter dated
21.10.2005 confirming deposit of title deeds of immovable properties on
20.10.2005 with an intention to create equitable mortgage thereon |
|||||||||
|
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. |
No change in
financial facilities Towards the term
loan of Rs. 90 millions. Already
sanctioned, the company provides additional security by way of equitable
mortgage the following properties of the company over and above the existing
securities. Land in
Tirunelveli R. D. Radhapuram Sub. District, Radhapuram Taluk, Udayathoor
Village S. F. NO.
427/18A 3.54.0 HECTARE S. F. NO.
427/18B 0.03.0 HECTARE TOTAL 3.57.0 HECTARE S. F. NO.
444/2A 0.99.0 HECTARE S. F. NO.
444/2B1 0.97.0 HECTARE TOTAL 1.96.0 HECTARE |
TRADE REFERENCES:
· Walmart
· Target
WEBSITE DETAILS:
Subject was founded in
October 1991 with a vision to build a global company delivering a complete
array of innovative and effective Home Furnishings solutions.
Subject is engaged in production and exports of Home Furnishing's Textiles and
has carved a niche for itself in various international markets.
The company has been built on a strong foundation of integrity and has a strong
commitment to quality, innovation, customer care and employee focus.
Subject has its registered office at Karur, Tamil Nadu State, which houses the
corporate headquarters and a large integrated manufacturing facility. The
company also has its marketing and manufacturing facilities strategically
situated in other locations like Noida(Uttar Pradesh) and Panipat (Haryana),
India to take care of the rising demand.
The company designs, manufactures and markets a coordinated line of value added
Home Textile products that Packaged Bed, Bath, Dining and Window furnishing
variants.
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 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.42.53 |
|
UK Pound |
1 |
Rs.83.44 |
|
Euro |
1 |
Rs.66.18 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|