MIRA
INFORM REPORT
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Report Date : |
08.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
BEST CORPORATION LIMITED [w.e.f. 05.11.2007] |
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Formerly Known As : |
RRD TEX LIMITED |
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Registered Office : |
Best Industrial Estate, 89/2, Padmavathipuram, Avinashi Road, Tirupur,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.03.2004 |
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Com. Reg. No.: |
181-11016 |
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CIN No.: [Company
Identification No.] |
U17111TZ2004PLC011016 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBR04090C |
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PAN No.: [Permanent
Account No.] |
AACCR6828G |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer and Exporter of Knitted Garment |
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 1100000 |
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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 satisfactory
track records. Trade relations are fair. Business is active. Payments are reported
as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
Best Industrial Estate, 89/2, Padmavathipuram, Avinashi Road, Tirupur,
Tamilnadu, India |
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Tel. No.: |
91-421-3980000 / 3980504 / 2477477 |
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Mobile No.: |
91-9360268477 |
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Fax No.: |
91-421-3980398 / 2473446 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. S. Ramasamy |
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Designation : |
Chairman |
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Address : |
4, Best Avenue, Rayapuram Main Road, Tirupur – 641601 |
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Date of Birth : |
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Date of Appointment : |
04.03.2004 |
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Name : |
Mr. R. Rajkumar |
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Designation : |
Managing Director |
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Address : |
4, Best Avenue, Rayapuram Main Road, Tirupur – 641601 |
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Date of Birth : |
16.10.1970 |
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Date of Appointment : |
04.03.2004 |
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Name : |
Mr. R. Dhanpal |
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Designation : |
Joint Managing Director |
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Address : |
4, Best Avenue, Rayapuram Main Road, Tirupur – 641601 |
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Date of Birth : |
02.11.1975 |
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Date of Appointment : |
04.03.2004 |
KEY EXECUTIVES
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Name : |
Mr. P T Ramesh |
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Designation : |
HR Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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S. Ramasamy |
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191600 |
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R. Rajkumar |
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158400 |
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R. Dhanpal |
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99000 |
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G Ramasamy |
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5000 |
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Total |
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454000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Knitted Garment |
GENERAL
INFORMATION
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Bankers : |
Plot No. 35 and 36, Binny Compound
Complex, Kumaran Road, Tirupur - 641601, Tamilnadu, India
Tirupur Branch, Rasi Towers, No. 23, 60
Feet Road, J. G. Nagar, Kumaranathapuram, Tirupur – 641602
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A L T N and Company Chartered Accountants |
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Address : |
Sabari Towers, KRR Lay Out Main Street Mangalam Road, Tirupur - 641604, Tamilnadu, India |
CAPITAL STRUCTURE
As on 28.09.2006
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,400,000 |
Equity Shares |
Rs. 100/- each |
Rs. 140.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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454,000 |
Equity Shares |
Rs. 100/- each |
Rs. 45.400
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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45.400 |
0.600 |
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2] Share Application Money |
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0.137 |
99.418 |
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3] Reserves & Surplus |
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222.913 |
0.021 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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268.450 |
100.039 |
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LOAN FUNDS |
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1] Secured Loans |
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964.731 |
65.705 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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964.731 |
65.705 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.012 |
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TOTAL |
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1233.181 |
165.756 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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993.959 |
62.567 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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3.050 |
3.050 |
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DEFERREX TAX ASSETS |
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0.483 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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180.062 |
5.977 |
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Sundry Debtors |
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57.355 |
0.000 |
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Cash & Bank Balances |
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12.422 |
8.759 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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112.796 |
109.315 |
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Total
Current Assets |
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362.635 |
124.051 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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124.010 |
24.267 |
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Provisions |
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5.615 |
0.168 |
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Total
Current Liabilities |
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129.625 |
24.435 |
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Net Current Assets |
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233.010 |
99.616 |
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MISCELLANEOUS EXPENSES |
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2.679 |
0.523 |
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TOTAL |
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1233.181 |
165.756 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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171.666 |
6.034 |
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Total Income |
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171.666 |
6.034 |
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Profit/(Loss) Before Tax |
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[0.979] |
0.057 |
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Provision for Taxation |
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0.130 |
0.036 |
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Profit/(Loss) After Tax |
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[1.109] |
0.021 |
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Imports Value |
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0.234 |
0.000 |
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Expenditures : |
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Financial Charges |
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30.302 |
0.000 |
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Depreciation |
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47.609 |
0.000 |
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Other Expenditure |
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94.734 |
5.977 |
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Total Expenditure |
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172.645 |
5.977 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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[0.65] |
0.35 |
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Net Profit Margin (PBT/Sales) |
(%) |
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[0.57] |
0.94 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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[0.07] |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.08 |
0.90 |
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Current Ratio (Current Asset/Current Liability) |
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2.80 |
5.08 |
LOCAL AGENCY
FURTHER INFORMATION
The subject company
was originally incorporated on March 4, 2004 as “RRD Tex Private Limited” and
subsequently changed in the Deemed Public Limited Company. The subject has
changed its name as “Best Corporation Limited” with effect from November 6,
2007 as per registry records vide SRN No. A25544180 dated 06/11/2007.
Bankers Charges
Report as per Registry
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Name of the company |
RRD TEX PRIVATE LIMITED |
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Presented By |
R. Rajkumar, Managing Director |
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1) Date and description of instrument creating the change |
01.06.2005 Term Loan
Agreement dated 01.06.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 120.000
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 |
All the
machineries indigenous relating to Windmills, spinning mill, garment factory
to be purchased out of term loan. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The assets
mentioned in Sl. No. above are hypothecated for the amount mentioned in Sl.
No. 2. |
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5) Name and Address and description of the person entitled to the charge. |
Bharat Overseas
Bank Limited Tirupur Branch,
Rasi Towers, No. 23, 60 Feet Road, J. G. Nagar,
Kumaranathapuram, Tirupur – 641602 |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U17111TZ2004PLC011016 |
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Name of the
company |
RRD TEX PRIVATE
LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
89/2, Padmavathipuram, Avinashi Road, Tirupur, Coimbatore – 641603, Tamilnadu, India |
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Type of charge |
Movable Property |
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Particular of
charge holder |
Oriental Bank of
Commerce Plot No. 35 and
36, Binny Compound Complex, Kumaran Road, Tirupur - 641601, Tamilnadu, India |
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Nature of
description of the instrument creating or modifying the charge |
Agreement of Term
Loan – [Loan DOC 5] Agreement of
Hypothecation of Assets [Loan Doc 1] |
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Date of
instrument Creating the charge |
24.01.2007 |
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Amount secured by
the charge |
Rs. 1000.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Minus 2 % over
PLR i.e. 9.75 % as on date of execution of documents Terms of
Repayment Term loan is
repayable in 33 quarterly installments commencing from March 2009 and entire
amount is to be paid by March 2017 Margin 25 % Extent and
Operation of the charge The Charge
operates as security for the repayment by the borrower to the Bank of the amount
due under or arising out of this agreement and cost, expenses an any kind of
charges incurred by the bank from time to time for the purpose of such
Security / hypothecated assets and for all necessary steps till actual
realization. Others LC [Inland /
foreign] Rs. 900.000 Millions Note : The total
amount secured under the term loan agreement of hypothecation of assets is
Rs. 1000.000 Millions as the LC limit is a sublimit under Term Loan |
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Short particulars
of the property charged |
For Term Loan : Hypothecation of
plant and machineries and other fixed assed of the new mills at the proposed
cost of Rs. 331.42 Millions by way first charge. For LC [Sub Limit
under Term Loan] Goods under LC on
DA basis Documents of
title to goods |
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 |
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US Dollar |
1 |
Rs.40.53 |
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UK Pound |
1 |
Rs.81.54 |
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Euro |
1 |
Rs.62.40 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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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 |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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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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 |
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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 |
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