MIRA
INFORM REPORT
|
Report Date : |
15.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THIAGARAJAR MILLS LIMITED |
|
|
|
|
Formerly Known As : |
SAROJA MILLS LIMITED |
|
|
|
|
Registered Office : |
Kappalur, Madurai – 625008, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
26.06.1935 |
|
|
|
|
Com. Reg. No.: |
002515 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L27209TN1935PLC002515 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MRIT00759D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT4304R |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of Cotton Yarn. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 4700312 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Available information indicates high financial responsibility of the company and
its management. General financial position is good. Fundamentals are strong
and healthy. Payments are reported as usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
|
Registered Office/ Factory : |
Kappalur, Madurai – 625008, Tamilnadu, India |
|
Tel. No.: |
91-452-2482595 (4 Lines), 91-4549-280620/ 280592/ 280919 |
|
Fax No.: |
91-452-2482590/ 2486085 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mrs. Radha Thiagarajan |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
Kappalar, Madurai – 625008, Tamilnadu, India |
|
Date of Birth/Age : |
16.04.1925 |
|
Date of Appointment : |
11.09.1970 |
|
|
|
|
Name : |
Mr. T. Kannan |
|
Designation : |
Managing Director |
|
Address : |
Kappalar, Madurai – 625008, Tamilnadu, India |
|
Date of Birth/Age : |
09.05.1953 |
|
Date of Appointment : |
01.07.1976 |
|
|
|
|
Name : |
Mr. Ramanathan Chettiar |
|
Designation : |
Director |
|
Address : |
Madurai – 625001, Tamilnadu, India |
|
Date of Birth/Age : |
10.09.1922 |
|
Date of Appointment : |
28.06.1969 |
|
|
|
|
Name : |
Mr. T R Venkatakrishnan |
|
Designation : |
Director |
|
Address : |
Flat No. A Prajwal Lotus, 257 Alagirisamy Salai, K K Nagar, Chennai –
600078, Tamilnadu, India |
|
Date of Birth/Age : |
31.03.1934 |
|
Date of Appointment : |
20.10.1999 |
|
|
|
|
Name : |
Mr. A Mariappan |
|
Designation : |
Director |
|
Address : |
92/2 Meenakshipuram, Aruppukkottai Road, Madurai – 625012, Tamilnadu,
India |
|
Date of Birth/Age : |
19.06.1937 |
|
Date of Appointment : |
20.10.1999 |
KEY EXECUTIVES
|
Name : |
Mr. K S Srinivasan |
|
Designation : |
Company Secretary |
|
Address : |
18 (Old No.5), South Krishnan, Temple Second Lane, Madurai – 625001,
Tamilnadu, India |
|
Date of Birth/Age : |
10.08.1972 |
|
Date of Appointment : |
01.04.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Mr. Thirupathy Venkatachalapathy |
|
120 |
|
Mr. M M Naidu |
|
120 |
|
Mr. R. Purushottom Naidu |
|
240 |
|
Mr. Balagutuvammal |
|
720 |
|
Mr. Ramanathan Chettiar |
|
100 |
|
Mr. T Katairaj |
|
100 |
|
Mr. P R Ramakrishnan |
|
100 |
|
Mr. S P Rajasekaran |
|
100 |
|
Mr. Mohanlal T. Bhatia |
|
50 |
|
Mr. T. Kanna |
|
525390 |
|
Mr. T Kanna (HUF) |
|
32000 |
|
Mr. G Somasundaram |
|
60 |
|
Mr. P Govindan Nair |
|
70140 |
|
Mrs. Radha Kanna |
|
154340 |
|
Mr. K Thiagarajan |
|
147520 |
|
Mrs. Uma Kanna |
|
72800 |
|
Mrs. Visalakshi Kanna |
|
72800 |
(As on 31.03.2007)
|
Category |
|
Percentage |
|
|
|
|
|
Bodies Corporate (not mentioned above) |
|
6.96 |
|
Directors or relatives of directors |
|
93.03 |
|
Other top fifty Shareholders (other than listed above) |
|
0.01 |
|
|
|
|
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Cotton Yarn. |
||||||
|
|
|
||||||
|
Products : |
|
||||||
|
|
|
||||||
|
Exports : |
|
||||||
|
Countries : |
· America · Australia · Europe · South
Asia |
GENERAL
INFORMATION
|
Bankers : |
· ABN-Amro Bank ·
State Bank
of India Commercial
Branch, 6A West Veli Street, Madurai – 625001, Tamilnadu, India ·
Standard
Chartered Bank 19 Rajaji Salai,
Chennai – 600001, India · IDBI Bank
Limited Karthikraja Complex 1/1 Vinay Gangar, Melur Road, Madurai – 625020,
Tamilnadu, India |
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
B. Purushottam and Company Chartered Accountant |
|
Address : |
3rd Floor, D Pioneer Homes, 23/A, North Boag Road, T Nagar,
Chennai – 600017, Tamilnadu, India |
|
|
|
|
Associates/Subsidiaries : |
Tamarai Selvi Finance Limited U65191TN1974PLC006735 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Shares |
Rs.10/.- each |
Rs.50.000 Millions |
|
|
|
|
|
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1511220 |
Equity Shares |
Rs.10/.- each |
Rs.15.112
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1080600 |
Equity Shares |
Rs.10/.- each |
Rs.10.806
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
10.806 |
11.339 |
11.370 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1164.272 |
1089.656 |
1085.124 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1175.078 |
1100.995 |
1096.494 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
699.313 |
501.199 |
164.838 |
|
|
2] Unsecured Loans |
2.965 |
3.638 |
5.043 |
|
|
TOTAL BORROWING |
702.278 |
504.837 |
169.881 |
|
|
DEFERRED TAX LIABILITIES |
107.315 |
102.631 |
48.197 |
|
|
|
|
|
|
|
|
TOTAL |
1984.671 |
1708.463 |
1314.572 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1261.528 |
1000.835 |
816.236 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.697 |
5.697 |
54.372 |
|
|
DEFERREX TAX ASSETS |
0.726 |
1.345 |
1.964 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
472.786
|
0.002 |
0.002 |
|
|
Sundry Debtors |
19.987
|
631.015 |
403.980 |
|
|
Cash & Bank Balances |
130.074
|
19.678 |
9.985 |
|
|
Other Current Assets |
0.002
|
18.368 |
19.722 |
|
|
Loans & Advances |
111.367
|
126.904 |
118.612 |
|
Total
Current Assets |
734.216
|
795.967 |
552.301 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
35.936
|
113.428 |
119.761 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
35.936
|
113.428 |
119.761 |
|
|
Net Current Assets |
698.280
|
682.539 |
432.540 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
18.440 |
18.047 |
9.460 |
|
|
|
|
|
|
|
|
TOTAL |
1984.671 |
1708.463 |
1314.572 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1505.666 |
1242.122 |
1596.649 |
|
|
Other Income |
38.570 |
53.235 |
30.962 |
|
|
Total Income |
1544.236 |
1295.357 |
1627.611 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
191.343 |
118.213 |
152.938 |
|
|
Provision for Taxation |
50.345 |
59.065 |
41.718 |
|
|
Profit/(Loss) After Tax |
140.998 |
59.148 |
111.220 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
696.033 |
518.270 |
727.724 |
|
|
Purchases made for re-sale |
18.036 |
8.672 |
56.395 |
|
|
Salaries, Wages, Bonus, etc. |
72.805 |
74.423 |
77.447 |
|
|
Managerial Remuneration |
3.471 |
3.421 |
2.988 |
|
|
Payment to Auditors |
0.044 |
0.041 |
0.041 |
|
|
Interest |
22.153 |
19.107 |
3.999 |
|
|
Insurance Expenses |
10.096 |
9.400 |
9.148 |
|
|
Depreciation & Amortization |
174.602 |
165.990 |
163.127 |
|
|
Other Expenditure |
355.653 |
377.820 |
433.804 |
|
Total Expenditure |
1352.893 |
1177.144 |
1474.673 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
9.13
|
4.57 |
6.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.71
|
9.52 |
9.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.59
|
6.58 |
11.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.11 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.63
|
0.56 |
0.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
20.43
|
7.02 |
4.61 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate identity
number (CIN) Foreign company registration number |
L27209TN1935PLC002515 |
|
Name of the
Company |
THIAGARAJAR MILLS LIMITED |
|
Address |
Kappalur, Madurai – 625008, Tamilnadu, India |
|
This form is for |
Modification of charge |
|
Type of Charge |
Immovable
Property Movable Property
(not being pledge) |
|
Particulars of
the charge holder |
State Bank of
India Commercial
Branch, 6A West Veli Street, Madurai – 625001, Tamilnadu, India |
|
Nature or
description of the instrument(s) creating or modifying the charge |
No execution of
instrument reduction of charge amount by Rs.260.000 Millions from Rs.1190.000
Millions to Rs.930.000 Millions by letter dated 25.04.2007 |
|
Date of the
instrument creating or modifying the charge |
25.04.2007 |
|
Amount secured by
the charge |
Rs.930.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: As in earlier
charge Terms of
Repayment: As in earlier
charge Margin: Nil Extent and
operation of the charge: The charge
operate as the security for the due repayment by the borrower to state Bank of
India of its dues together with interests costs, expenses and all other
monies payable by the borrower to state bank of India in terms of the said
agreement |
|
Short particulars
of the property charged (including location of the property) |
Cotton, Cotton in
processes, yarn, yarn in process, stores and spares, receivable lying at the
premises at the premises of Kappalur Singanallur and Nilakottai – Units of
the company and all stocks in transit belonging to the company. |
|
Particular of the
present modification |
Reducing in
Amount secured from Rs.1070.000 Millions to Rs.930.000 Millions. Reduction of
amount is Rs. 140.000 Millions |
|
Name of the company |
THIAGARAJAR MILLS LIMITED |
|
Presented By |
Thiru A Mariappan,
Director (Marketing and Finance) |
|
1) Date and description of instrument creating the change |
27.01.2003
Agreement of Hypothecation of Stocks and Book Debts for INR 75.000 Millions |
|
2) Amount secured by the charge/amount owing on the securities of charge |
INR Rs.75.000
Millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All Stocks and
Book Debts and receivable both present and future of the company |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The charge is
created for the following facilities bill discounting, packaging credit and
letter of credit extended to the company The charge
operated on a Pari Passu basis amongst banks under multiple banking without
any performance or priority of one over the other. |
|
5) Name and Address and description of the person entitled to the charge. |
Standard
Chartered Bank 19 Rajaji Salai, Chennai
– 600001, India |
|
6) Date and brief description of instrument modifying the charge |
Supplemental
Hypothecation Agreement of Stocks/ Book Debts dated 23.04.2004 increasing the
limit to INR 200Mio. |
|
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. |
Present
modification is for enhancement in limit from INR Rs.140.000 Millions To INR Rs.200.000
Millions Covering the facilities
of Bills Discounting Packing Credit and Letter of Credit. |
Fixed Assets:
· Land
· Building
· Plant and Machinery
· Furniture
· Vehicles
· Livestock
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.33 |
|
UK Pound |
1 |
Rs.82.31 |
|
Euro |
1 |
Rs.65.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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 |
|