MIRA
INFORM REPORT
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Report Date : |
07.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
VIJAYESWARI TEXTILES LIMITED |
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Registered Office : |
2/185 , Palladam Road, Puliampatti, Pollachi, Tamil Nadu – 642 002 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.09.1953 |
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Com. Reg. No.: |
248 |
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CIN No.: [Company
Identification No.] |
L17111TZ1953PLC000248 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBV03050F |
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PAN No.: [Permanent
Account No.] |
AAACV6388F |
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Legal Form : |
Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Marketer of Cotton and Polyester Texturised Yarns. |
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 5900592 |
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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 company engaged in manufacturing and marketing of Cotton and Polyester Texturised Yarns. Though there has been a marginal improvement in its turnover, margins continued to be under pressure. Trade relations are reported as fair. Payments are 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 : |
2/185 , Palladam Road, Puliampatti, Pollachi, Tamil Nadu – 642 002,
India |
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Tel. No.: |
91-422-2214025 / 2216730 |
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Fax No.: |
91-422-2213488 |
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E-Mail : |
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Websites: |
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Corporate Office/Branches : |
10/400 Palghat Main road, Kuniamuthur, Coimbatore – 641 008, Tamil
Nadu, India |
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Administrative Office : |
1088, Avanashi Road, Coimbatore – 641037, Tamilnadu, India |
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Tel. No.: |
91-422-2214025 / 2216730 |
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Fax No.: |
91-422-213488 |
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E-Mail : |
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Factory (Spinning Division) : |
Pulliampatti, Via Pollachi, Coimbatore – 642 002, Tamilnadu, India |
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Tel. No.: |
91-422-2214025 / 2216730 |
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Fax No.: |
91-422-2213488 |
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E-Mail : |
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Factory (Weaving Division): |
Arakulam, Palladam |
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Factory (Processing
Division): |
SIPCOT, Industrial Complex, Perundurai |
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Branches : |
Intime Spectrum Registry Limited, “Surya” 35 May Flower Avenue (Behind Senthil Nagar), Sowripalayam Road, Coimbatore – 641 028, Tamil Nadu, India |
DIRECTORS
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Name |
Mr. K. Rajagopal |
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Designation |
Chairman and Managing Director |
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Name |
Mr. R. Gopinath |
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Designation |
Director |
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Name |
Mr. A. L. Ramchandra |
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Designation |
Managing Director |
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Name |
Mr. A. R. Guruswamy |
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Designation |
Director |
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Name |
Mr. G. R. Raju |
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Designation |
Director |
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Name |
Mr. G. R. Vasanthkumar |
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Designation |
Director |
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Name |
Mr. N. Balakrishnan |
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Designation |
Director |
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Name |
Mr. R. Jayanthi Ramchandra |
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Designation |
Joint Managing Director |
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Name |
Mr. Sudarshan Varadaraj |
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Designation |
Director |
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Name |
Mr. V. Dharmaraj |
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Designation |
Director |
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Name |
Mr. V. Raju Naidu |
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Designation |
Director |
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Name |
Mr. K. V. Narayanan |
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Designation |
Director |
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Name |
Mr. Durai Ramaswamy |
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Designation |
Director |
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Name |
Mr. M. D. Selvaraj |
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Designation |
Director |
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Name |
Mr. P. Vijay Raghunath |
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Designation |
Director |
KEY EXECUTIVES
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Name : |
S. Rengasamy |
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Designation : |
Company Secretary |
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Name : |
Mrs. Radhika K Kumar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
7783680 |
42.84% |
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Mutual Fund Banks / Financial Institutions |
2000550 |
11.01% |
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Foreign Institutional Investors |
2372238 |
13.06% |
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Private Corporate Bodies |
4354076 |
23.96% |
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Non Resident Indians |
16350 |
0.09% |
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Indian Public |
1642346 |
9.04% |
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Total
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18169240 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Marketer of Cotton and Polyester Texturised Yarns. |
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Products : |
Cotton and Polyester Texturised Yarns
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PRODUCTION STATUS (as on 31.03.2007):-
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Particulars |
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Unit |
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Installed
capacity |
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Ring Spindles |
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46004 |
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OE Spinning Rotors |
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Nil |
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Looms |
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18 |
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Production of
Finished Goods |
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Cotton Yarn |
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Kgs |
1992020 |
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Made-ups |
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Mtrs |
3779268 |
GENERAL
INFORMATION
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Suppliers : |
· Lakshmi Paper Cones, · Sri Venkatalakshmi Packings · Nathan Industries · Shree Balaji Industries · Yale Industries · Decorpac · Eraatex Agency · Jyothi Packing Industries · Quality Finishers · Evertech Equipments · Jai Specialities Starch · Sree Sakthi Industries · Anwar Silk Industries |
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Customers : |
· Vijayeswari - USA LLC · Vijayeswari - UK Limited |
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No. of Employees : |
Around 2000 |
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Bankers : |
· Andhra Bank, Main Branch, Coimbatore · State Bank of India · Oriental Bank of Commerce, Avinashi Road, Coimbatore · Indian Overseas Bank, Coimbatore. |
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Facilities : |
Notes: Working capital
loans from banks are secured by hypothecation of Raw Materials, Stock-in-Process
and Finished Goods, and Second charge on the Fixed Assets of the Company on
Pari-passu basis. Term Loan From banks, IREDA, HDFC are secured by specific /
exclusive charge of assets. IDBI Corporate loan of Rs. 80.000 millions is
secured by exclusive charge on Fixed Deposits as lien. Hire Purchase Dues are
secured by hypothecation of vehicles purchased.
Note : Fixed Deposits repayable within a year Rs. 1.084 millions. Unclaimed
matured deposits worth Rs. 2.141 millions are not surrendered for repayment. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Subbachar & Srinivasan Chartered Accountants |
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Address : |
Coimbatore |
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Internal
Auditors: |
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Name : |
Smt. Shashirekha Vengatesh Chartered Accountants |
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Address : |
Coimbatore |
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Associates/Subsidiaries : |
· Vijayeswari Exports Limited · Vijayeswari - USA LLC · Vijayeswari - UK Limited · Lakshmi Apparels and Wovens Limited · Seshraj Apparels Private limited · Seshraj Enterprises Private Limited · Coimbatore Lakshmi Investment and Finance Company Limited. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity shares |
Rs. 10/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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18169240 |
Equity shares |
Rs. 10/- each |
Rs.181.692
millions |
Notes:
1) Of the above
shares, 5064620 Equity shares of Rs. 10/- represent fully paid up bonus shares
issued by
capitalisation of
General Reserve.
2) Of the above
shares 9000000 equity shares of Rs. 10/- each fully paid have been allotted on
05.03.2007 through Public Issue.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
181.692 |
45.846 |
45.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1293.456 |
398.341 |
257.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1475.148 |
444.187 |
303.000 |
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LOAN FUNDS |
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1] Secured Loans |
1168.610 |
726.866 |
448.500 |
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2] Unsecured Loans |
1.917 |
9.280 |
26.000 |
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TOTAL BORROWING |
1170.527 |
736.146 |
474.500 |
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DEFERRED TAX LIABILITIES |
34.025 |
34.025 |
0.000 |
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TOTAL |
2679.700 |
1214.358 |
777.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
626.144 |
290.296 |
204.400 |
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Capital work-in-progress |
0.000 |
0.000 |
6.500 |
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INVESTMENT |
105.414 |
5.414 |
5.900 |
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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 |
693.117
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479.759 |
368.800 |
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Sundry Debtors |
451.025
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386.400 |
276.000 |
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Cash & Bank Balances |
683.834
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12.237 |
21.300 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
327.459
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257.823 |
330.700 |
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Total
Current Assets |
2155.435
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1136.219 |
996.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
302.461
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235.377 |
417.100 |
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Provisions |
56.099
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22.242 |
19.000 |
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Total
Current Liabilities |
358.560
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257.619 |
436.100 |
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Net Current Assets |
1796.875
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878.600 |
560.700 |
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MISCELLANEOUS EXPENSES |
151.267 |
40.048 |
0.000 |
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TOTAL |
2679.700 |
1214.358 |
777.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1471.869 |
968.543 |
989.000 |
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Other Income |
21.857 |
6.800 |
0.000 |
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Total Income |
1493.726 |
975.343 |
989.000 |
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Profit/(Loss) Before Tax |
155.681 |
123.947 |
15.000 |
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Provision for Taxation |
3.464 |
[27.696] |
7.800 |
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Profit/(Loss) After Tax |
152.217 |
151.643 |
7.200 |
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Earnings in Foreign Currency : |
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Export Earnings |
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NA |
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Commission Earnings |
1229.537 |
811.323 |
NA |
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Other Earnings |
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NA |
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Total Earnings |
1229.537 |
811.323 |
NA |
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Imports : |
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Raw Materials |
30.694 |
32.802 |
NA |
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Stores & Spares |
13.389 |
9.534 |
NA |
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Capital Goods |
2.558 |
19.171 |
NA |
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Total Imports |
46.641 |
61.507 |
NA |
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Expenditures : |
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Administrative Expenses |
127.898 |
107.706 |
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Raw Material Consumed |
565.850 |
330.500 |
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Increase/(Decrease) in Finished Goods |
[45.566] |
[56.364] |
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Salaries, Wages, Bonus, etc. |
54.049 |
42.987 |
974.000 |
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Power & Fuel |
84.189 |
64.691 |
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Depreciation & Amortization |
31.959 |
26.253 |
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Other Expenditure |
447.006 |
270.535 |
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Total Expenditure |
1265.385 |
786.308 |
974.000 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type
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1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
354.900 |
211.100 |
364.300 |
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Other Income |
15.100 |
21.000 |
17.500 |
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Total Income |
370.000 |
232.100 |
381.800 |
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Total Expenditure |
283.600 |
149.400 |
312.100 |
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Operating Profit |
86.400 |
82.700 |
69.700 |
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Interest |
28.200 |
38.000 |
23.000 |
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Gross Profit |
58.200 |
44.700 |
46.700 |
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Depreciation |
13.500 |
13.100 |
12.800 |
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Tax |
0.400 |
0.400 |
0.500 |
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Reported PAT |
44.300 |
31.200 |
33.400 |
KEY RATIOS
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.99 |
1.62 |
1.46 |
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Long Term Debt-Equity Ratio |
0.25 |
0.32 |
0.51 |
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Current Ratio |
1.57 |
1.26 |
1.35 |
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TURNOVER RATIOS |
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Fixed Assets |
1.87 |
1.64 |
1.56 |
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Inventory |
2.42 |
2.21 |
2.58 |
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Debtors |
3.38 |
2.83 |
3.12 |
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Interest Cover Ratio |
2.92 |
2.78 |
1.20 |
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Operating Profit Margin(%) |
18.96 |
16.16 |
13.02 |
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Profit Before Interest And Tax Margin(%) |
16.70 |
20.53 |
9.27 |
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Cash Profit Margin(%) |
13.00 |
8.83 |
4.49 |
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Adjusted Net Profit Margin(%) |
10.74 |
13.21 |
0.74 |
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Return On Capital Employed(%) |
13.02 |
20.05 |
10.45 |
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Return On Net Worth(%) |
15.86 |
33.11 |
2.05 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company is the flagship of the K Rajagopal faction of the split Lakshmi group. Its group companies are Coimbatore Lakshmi Investment and Finance, United Bleachers (a subsidiary of Lakshmi Mills) a processing house, and Lakshmi Apparels and Wovens.
As a part of tapping non-conventional energy, two 250KW wind turbine generators has been commissioned in March, 1994 at Muppandal at a cost of Rs. 15.900 millions. The company has installed 12 PICANOL – make imported air jet looms at Arakkulam, Tamilnadu, with a total cost of Rs. 44.200 millions. The division started functioning from September, 1995.
The company plans to focus on value added products into new markets and also plans to set up fabric processing unit to meet the quality standards of overseas market.
Subject was incorporated in 1953, to manufacture and sell fine and superfine cotton yarn and polyester texcturised yarn. It has a capacity of 49, 972 ring spindles and 216 draw texturising drums installed in two mills, one at Puliampati (Coimbatore district) and the other at Muppandal (Kanayakumari district), both in Tamilnadu.
The company is a fine count (Avg count NE 90) spinning mill, which exports over 50 % of its output. The company’s yarn has been very well received in Italy and Japan. The group is on the look-out for like minded partners in textiles to improve market share throughout the world.
In 1955, the company has grown from a small 10000 spindle mill to a well modernised high quality 50000 spindle, 100 % conbed cotton, super fine spinning mill. This company is managed by Mr. G. K. Rajagopalan – Managing Director of Lakshmi Group.
His son is the founder of over Rs. 10 billions Lakshmi Group.
In 1990, Mr. G. K. Rajagopalan decided to branch out on his own chairmanship is Vijayeswari Textiles, Lakshmi Apparels and Wovens, Coimbatore Lakshmi Investment and Finance. The strong leadership and vision of Mr. Gopalan has enabled the companies managed by him to achieve strong export performance and excellent returns for their stakeholders.
The company has machinery from Rieter, Lakshmi Machinery Works, Murata, Zellwegfer Uster to make yarn that meets its customer’s standards. Company’s current count range is NE 80 to NE 140.
The company has also moved into the bed Linen sector with an initial investment of 12 width air jet looms from Picanol. This sector is expected to enhanced to a capacity of 500 000 meters per month over the next three years and an anticipated turnover of Rs. 600 millions.
Review of operations
The
Company's turnover showed a substantial increase during the year under review
and in line with that the operating profits has also increased by 21%. The Company
had developed ingredient brands which are widely accepted in the market. With
effective cost controls, the input costs were also contained at reasonable
levels.
This year also the company has been awarded 'Five Star Award' in recognition of
a continued outstanding service in the development of Macy's Department Stores
private brands awarded by Macy's Merchandising
Group.
This
recognition has been given to the company 8th year in a row.
Future
The Indian Textile Industry is poised for a massive growth. Abolition of
Quota under the Multi Fibre Agreement has opened up a huge window of
opportunity for the Indian Home Textile Industry. The domestic market is also
flourishing. There is substantial potential in Indian exports of technical
textiles and home-textiles, as most European companies want to set up
facilities near-by the emerging markets, such as China and India.
The
Company is also taking advantage of this opportunity by tapping newer markets
of Australia, France, South West Asia, Spain, etc. The company plans to extend
its top of the bed product profile with the addition of quilts, blankets,
matalesse and coverlets in the current bedroom segment.
Going
forward it also plans to enter the living room segment with curtains furnishing
fabrics. This will open a whole new market for the company.
However,
all through, it intends to stick to the luxury and top end segments. The
proposed expansion is in line with this plan.
Internal control system and their
adequacy
The
Company has an adequate system of internal controls commensurate with its size
and nature of business and ensure adequate protection of the Company's
resources, provision of accurate and speedy financial reports and to ensure
compliance with the company's policies, procedures and legal obligations.
The audit Committee meets periodically with the management, internal auditors
and statutory auditors to review the internal audit and internal control
systems.
Subsidiaries
In line with the requirement to present consolidated accounts, the
consolidated financials of the Company including subsidiaries has been included
in this annual report. Statement required under Section 212 along with the
accounts of the subsidiary companies are attached in this report.
Dematerialisation
Out of the 18169240 shares 9704329 equity shares stands dematerialized. M/s
Intime Spectrum Registry Ltd., Mumbai having its branch office at Coimbatore
has been retained as the Registrar and Transfer Agents for all shares both in
electronic and physical form.
Public Offering of Equity Shares:
To part
finance the expansion project, the Company during March 2007 came out with a
public issue of 90,00,000 Equity shares of Rs. 10/- each at a price of Rs.100/-
for cash at a premium aggregating to Rs. 900.000 millions through 100% Book
Building Process. The issue was well received. The Directors wish to place on
record their gratitude to all the investors who have subscribed to the
issue.
Listing of Shares
During
the year the Company's shares were listed in the Bombay Stock Exchange (Scrip
Code: 532824) and they also continue to be listed in Madras Stock
Exchange.
Expansion
The expansion
project envisaged is already on stream. Three WEGs of 1.65 MW each have already
been commissioned.
Orders for spinning machinery have already been placed and the first set of
machines are expected to be commissioned during June 2008. The looms will be
commissioned based on the installations starting from October 2007. The
additional capacity in the processing unit will be operational from November
2007. The Embellishment machines in the sewing unit will go on stream in August
2007 and the semi automation process is expected to be completed by January
2008.
MANAGEMENT DISCUSSION AND
ANALYSIS
The
company is a home textile player with integrated capacities in bedding. The
company is positioned in the high-end luxury segment for fashion and basic
bedding with a firm foothold in the niche segment of high-end 'bedroom
products'.
The Product Mix of the Company comprises of Mass Volume, Special Volume, Brands
and Fashion bedding. Graphical representation of the product mix for the year
2006 - 2007 is as below
Industry Structure and
Developments
Textile Industry
Indian textile
industry is investing heavily to meet the targeted output of US $85bn by the
end of 2010, There is a development foreseen in Indian textile exports from US$
17bn attained in 2005-06 to US $50bn by 2009-10.
The
textile exports for the current financial year is estimated to be about US$
19bn. The imports of apparel and value added home textile products will rise
from developed economies like the USA, the European Union and Japan, along with
some newly emerging economies like the Latin America.
According to industry sources the global demand for apparel and woven textiles
is likely to grow by 25 percent by the year 2010. Asia will be responsible for
85 percent output of this growth. The textile exports are targeted at US$ 50bn.
The government has given a major fillip to the Textile Industry by extending
the. TUF subsidy. The prospects of the Indian Textile Industry depends on the
fast pace with which it modernizes. The raw material prices have witnessed a
high volatility during the year, which affected export margins.
Home Textile Sector
Home
textile segment has witnessed a prolific growth in the area of exports. India's
textile exports to the US grew by 19.3% in April 2006, allowing it to capture a
market share of almost 7%. India has become the, USA's leading foreign supplier
of towels, and one of its top three foreign suppliers of cotton sheets. Growth
is forecast to be robust, especially as developed countries come to appreciate
the Indian specializations in embellishments such as embroidery and special
sewing techniques.
However, the market is also becoming more competitive, with companies
establishing in-house dyeing facilities, adding high-speed looms and taking
other steps to bring in more value addition.
Opportunities
1. To capitalize on the growth in the home Textiles segment, the Company
has initiated the expansion program as envisaged in the previous year. This
will enable the company to integrate all its supply chains and to cater to
newer product lines. The Company has also targeted brand owners and other
clients in the hospitality segment.
2. The Company uses its social and environmental performance to differentiate
it from competition. The Company is committed to protecting the environment and
uses eco-friendly processing technology to reduce the level of effluents,
thereby providing ecologically sustainable and high quality products.
3. The Company uses wind power which is classified as green for most of its
manufacturing processes. It also believes in sustainability of the environment
by using a zero discharge effluent treatment plant for the Textile dyeing and
processing.
Present Developments
The
Company has registered the brand 'Genuisa Cotton' which is an eco-friendly
ingredient brand and it will enable the company to differentiate its products
offered to the Retailers. The successful branding process will enable the
Company to enter into long term relationships at the retail level.
Developments in the area of Eco-Friendly/ Organic Cotton products have led the
way to yet another innovative ingredient brand by the name KottonD'or.
The brand
has been certified by SKAL. This product is also well received by the retailers
in UK.
Threats to the Industry
India was
touted to take on China post WTO in terms of gains from global textile trade,
but India remains a distant second to China. The first year of quota-free trade
clearly went in favour of China, which retained its top position. Moreover, the
three neighbours - Pakistan, Bangladesh and Sri Lanka have ramped up their
textile acts giving tough competition to India.
Pakistan's
textile industry is planning to invest between $7-10 billion to counter growing
global competition, and raise its declining exports. This will be on top of US
$6 billion, it has already invested over the past five years.
Threats to the Company:
Company
may expect competition from domestic players who will be moving up the value
chain. Prolonged drought conditions and flood may affect the company, as the
main dependent factor of the company is specialized range of cottons both
domestic and international. Fluctuation in cotton price and yarn price may also
be a threat both in the domestic and export markets.
Depreciation
of Dollar value will also form a threat to the export market.
Personnel:
In the direction
of taking the organization towards lean management, they have embarked on
external HR intervention to bring about the mindset change and improve the
efficiency of the decision making executives. Their marketing department has
been strengthened by appointing professional from Europe who has rich
experience in bedlinen industry. His vast experience in this field will help
the Company to widen its customer base. The Company has been adding to its
employee strength by placing experienced professionals in all areas to
implement the expansion programme and also to strengthen the existing team.
Relationship with the employees remained cordial throughout the year.
Cautionary Statement
Statements
in this report, especially those relating to MD and A, giving details of
company's objectives, projections estimates and expectations may be construed
as 'forward looking statements' within the realm of applicable laws and
regulations. Actual results might be liable to differ materially from those either
expressed or implied.
FIXED ASSETS:
· Land
· Leasehold Land
· Building
· Plant and Machinery
· Furniture and Fittings
· Office Equipments
· Vehicles
· Canteen Vessels
· Computer Equipments
· Wind Farm
OTHER INFORMATION:
|
Contingent
Liability |
31.03.2007 |
31.03.2006 |
|
|
(Rs. in
millions) |
|
|
i) Letter of Credit |
50.232 |
57.795 |
|
ii) Bank Guarantees |
16.094 |
18.070 |
|
iii) Disputed Income tax demands |
1.600 |
2.677 |
|
iv) Fringe Benefit Tax not provided in view of the stay obtained. |
0.000 |
1.500 |
Details of
Utilization /deployment of IPO Proceeds are as under
|
DETAILS |
Actual as on
31.03.07 (Rs. in
millions) |
|
Public Issue Expenses |
26.910 |
|
Preoperative Expenses |
11.278 |
|
Advance for Wind Mills |
21.238 |
|
In current account & Short term deposits with Banks |
630.574 |
|
Short Term Investments in mutual funds |
100.000 |
|
Temporary Utilization for Working Capital |
110.000 |
|
TOTAL |
900.000 |
DETAILS OF PROJECT EXPENSES
(Rs. in millions)
|
Unit |
Total |
Utilization |
|||
|
Projected cost |
IPO Funds |
Terms Loans |
Internal Acruals |
Total |
|
|
Spinning |
954.500 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Weaving |
683.200 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Processing |
124.00 |
0.000 |
0.000 |
1.721 |
1.721 |
|
Sewing |
403.200 |
0.000 |
0.000 |
14.210 |
14.210 |
|
Windmill |
300.600 |
21.238 |
238.937 |
58.407 |
318.582 |
|
Working Capital |
191.700 |
110.000 |
0.000 |
0.000 |
110.000 |
|
Preoperative & Issue Expenses |
190.800 |
38.188 |
0.000 |
3.495 |
41.683 |
|
Deposits With Banks |
0.000 |
730.574 |
0.000 |
0.000 |
730.574 |
|
Total |
2848.000 |
900.000 |
238.937 |
77.833 |
1216.770 |
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.40.67 |
|
UK Pound |
1 |
Rs.82.03 |
|
Euro |
1 |
Rs.62.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
|