MIRA INFORM REPORT

 

 

 

Report Date :

19.05.2008

 

IDENTIFICATION DETAILS

 

Name :

NANNOOH BROTHERS PRIVATE LIMITED

 

 

Registered Office :

165, Angappa Naicken Street, Chennai – 600001, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

05.04.1990

 

 

Com. Reg. No.:

18-18995

 

 

CIN No.:

[Company Identification No.]

U36999TN1990PTC018995

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEN00481F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing, exporting and importing of Household and Industrial Brushes.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 48440

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track records. Trade relations are fair. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered/Sales Office :

165, Angappa Naicken Street, Chennai – 600001, Tamilnadu, India

Tel. No.:

91-44-25228704/25230876/25230878/ 25230875

Mobile No.:

91-9840085300

Fax No.:

91-44-24501256/25230876

E-Mail :

nanooh@vsnl.com

ebalufca@yahoo.co.in

Website :

http://www.nanooh.com

Area :

1000 sq. ft.

Location :

Owned

 

 

Head Office :

Old Mahabalipuram road, Nar Thangavelu Engineering College, Karapakkam, Chennai – 600 096, Tamilnadu, India

Tel. No.:

91-44-24502786/24502317/24501287

Mobile:

91-9840085300

Fax No.:

91-44-24501256

E-Mail :

nannooh@vsnl.com

Website:

http://www.nannooh.com

 

 

Factory  :

New No. 190 (Old No. 165), Angappa Nakken Street, Chennai – 600  001, Tamilnadu, India

Tel. No.:

91-44-25228704

Fax No.:

91-44-25230876

 

DIRECTORS

 

Name :

Mr. Ayub Mohamed Nannooh

Designation :

Chairman cum Managing Director

Address :

165, Angappa Naicken Street, Chennai, India

Date of Birth/Age :

6.10.1947

Qualification :

B. A.

Experience :

30 Years

Date of Appointment :

06.04.1990

 

 

Name :

Mrs. Munira Ayub

Designation :

Director

Address :

165, Angappa Naicken Street, Chennai, India

Date of Birth/Age :

30.06.1952

Date of Appointment :

16.07.1992

 

 

Name :

Mr. Mohammad Imran

Designation :

Director

Address :

165, Angappa Naicken Street, Chennai, India

Date of Appointment :

01.04.1995

 

 

Name :

Mr. Rizwan Nannooh

Designation :

Director

Address :

165, Angappa Naicken Street, Chennai, India

Date of Birth/Age :

21/06/1982

Qualification :

B. Sc.

Date of Appointment :

14.08.2000

 

 

Name :

Mr. Akil Ahmed

Designation :

Director

Address :

165, Angappa Naicken Street, Chennai

Date of Appointment :

30.09.2004

 

KEY EXECUTIVES

 

Name :

B. Prabakar and Company

Designation :

Company Secretary

Address :

11/6, Thiruvengadam Street, West Mambalam, Chennai – 600033, India

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 30.09.2005)

Names of Shareholders

No. of Shares

 

 

Mr. Ayub Mohamed Nannooh

2044

Mr. Akil Ahmed

515

Mr. Mohammad Imran

470

Mr. A. K. Rasheed

1

Ms. Ayesha BiBi

1

Mr. R. B. Khan

1

Mr. M. A. Khan

1

Mr. M. H. Khan

1

Ms. A. M. Rasheed

1

Ms. Amina A. Khan

1

Mr. Abdul Quayyum and M. Babul Khan

1

Mr. M. K. G. Abbas

1

Mrs. Lakshmi and Vedachalam

1

Mr. Vedachalam

1

Ms. Abeeda Banu

1

Mr. A. V. Khan and Rukaiya M. Patel

1

M/s Crown Brush Industries

1750

Mr. Rizwan Nannooh

205

Ms. Rahila

55

Mrs.Munira Ayub and Mr. Akil Ahmed

264

Mrs. Munira Ayub and Mr. Mohammad Imran

264

Mrs. Munira Ayub and Mr. Rizwan Nannooh

263

 

 

Total

5843

 

(As on 31.03.2007)

Category

Percentage

 

 

Director or related of directors

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing, exporting and importing of Household and Industrial Brushes.

 

 

Brand Names :

“Crown”

 

 

Exports :

 

Products :

Brushes

Countries :
  • USA
  • UK
  • New Zealand
  • Middle East
  • Asia

 

 

Imports :

 

Products :
  • Paint Brush
  • Synthetic Filaments

Countries :
  • UK / Holland
  • Italy

 

 

Terms :

 

Selling :

Cash and Credit (60 days)

 

 

Purchasing :

Cash and Credit (60 days)

 

GENERAL INFORMATION

 

No. of Employees :

88 (12 – Office, 70 – Factory, 6 – Branch)

 

 

Bankers :
  • Bank of Baroda

Chennai Main Branch, 28, Rajaji Salai, Chennai – 600001, Tamilnadu, India

 

  • CITI Bank
  • ICICI Bank

 

 

Facilities :

The company enjoys Credit Limit facility of Rs.5.500 millions from its’ bankers

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

E. Balu

Chartered Accountants

Address :

172/93, Coral Merchants Street, Chennai – 600 001, Tamilnadu

Tel. No.:

91-44-25248785

 

 

Associates/Subsidiaries :

Crown Brush Industries

165, Angappa Naicken Street, Chennai – 600001, Tamilnadu

Activity – Manufacturers and Dealers in all types of “Crown” Brushes

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7000

Equity shares

Rs.1000/-each

Rs.7.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5843

Equity shares

Rs.1000/-each

Rs.5.843 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

5.843

5.843

5.843

2] Share Application Money

0.200

0.200

0.200

3] Reserves & Surplus

6.781

6.781

6.781

4] (Accumulated Losses)

(0.714)

(0.822)

(0.982)

NETWORTH

12.110

12.002

11.842

LOAN FUNDS

 

 

 

1] Secured Loans

11.210

8.865

7.958

2] Unsecured Loans

7.372

5.036

5.955

TOTAL BORROWING

18.582

13.901

13.913

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

30.692

25.903

25.755

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

14.787

13.636

14.162

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Sundry Debtors
10.790

6.885

5.920

 

Cash & Bank Balances
0.112

0.028

0.078

 

Other Current Assets
11.561

13.703

13.702

 

Loans & Advances
0.896

0.156

0.112

Total Current Assets
23.359

20.772

19.812

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
6.362

7.303

6.442

 

Provisions
1.092

1.202

1.777

Total Current Liabilities
7.454

8.505

8.219

Net Current Assets
15.905

12.267

11.593

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

30.692

25.903

25.755

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2007

31.03.2006

Sales Turnover

 

42.361

31.774

Other Income

 

0.000

0.000

Total Income

 

42.361

31.774

 

 

 

 

Profit/(Loss) Before Tax

 

0.457

0.176

Provision for Taxation

 

0.107

0.015

Profit/(Loss) After Tax

 

0.350

0.161

 

 

 

 

Total Expenditure

 

41.904

31.598

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
0.83

0.51
NA

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
1.08

0.56
NA

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
1.20

0.52
NA

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.04

0.02
NA

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.15

1.87

1.87

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.13

2.45

2.41

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8

 

Corporate identity number (CIN) Foreign company registration number

U36999TN1990PTC018995

Name of the Company

NANNOOH BROTHERS PRIVATE LIMITED

Address

165, Angappa Naicken Street, Chennai – 600001, Tamil Nadu, India

This form is for

Modification of charge

Type of Charge

·         Immovable property

·         Any interest in immovable property

·         Book debts

·         Movable Property (not being pledge)

·         Floating Charge

Particulars of the charge holder 

Bank of Baroda

Chennai Main Branch, 28 Rajaji Salai, Chennai – 600001, Tamil Nadu, India

northb@bankofbaroda.com

Nature or description of the instrument(s) creating or modifying the charge

Composite Hypothecation Agreement LDOC 17(B)

Supplemental Memorandum of Entry

Date of the instrument creating or modifying the charge

26.04.2007

Amount secured by the charge

Rs.38.214 Millions

Brief particulars of the principal terms and conditions and extent and operation of the charge

  • Rate Of Interest: Cash Credit Hypothecation stocks and Book debts: 0.50% below the Benchmark Prime Leading Rate ie. 12% per annum; Interest on Term Loan 1.25% over Benchmark Prime Leading Rate i.e. 13.75% per annum.
  • Terms of repayment:  Cash Credit repayable on demand; Term Loan Rs.0.480 Million repayable in 32 monthly installments of Rs.15000/- each commencing from April, 2007; Term Loan Rs.0.434 Million repayable in 25 monthly installments of Rs.16666/- and last installment Rs.16690/- commencing from April 2007; Term Loan Rs.11.000 Millions repayable in 22 quarterly installments of Rs.0.500 Millions each with a moratorium of 10 months.
  • Margin:  Cash Credit Margin 25% on stock and Book debts ; all term Loan Margin 25%
  • Extent and Operation of the Charge:  Facilities Sanctioned to the company have been revised as under

 

Rs. millions                 Existing                     Revised

Cash Credit                  6.500                          12.300

Bank Guarantee           0.978                           --

Term Loan I                 1.500                            --

Term Loan II                 3.000                          0.480

Term Loan                    0.600                          0.434

Term Loan – New          --                               11.000

Import LC One Time      --                               38.214

Total                             12.578                       62.428

 

 

  • Others:  Facilities sanctioned to the company have been revised from Rs.12.578 Millions to Rs. 38.214 Millions; Secured be the current assets and immovable properties of the company.

Short particulars of the property charged (including location of the property)

Equiable Mortgage of immovable properties of Loan admeasuring 0.73 cents and building thereon in Survey nos 14/4A, 142/3, 142/2C, 142/2B, and 141/3B in old Patta No. 19, Present Patta No. 23 Dated 24.10 2001 issued by Deputy Tahsildar Tambaram at Karapakkam Vellage within the Registration sub district of Neelangarai and Registration district of Kancheepuram;

Particular of the present modification 

Facilities Sanctioned to the company have been revised from Rs.12.578 Millions to Rs.38.214 Millions.

 

 

 

 

 

Name of the company

NANNOOH BROTHERS PRIVATE LIMITED

Presented By

Nannooh Brothers Private Limited and

Bank of Baroda, Chennai Main Branch  - 600001,

1) Date and description of instrument creating the change

10/10/2001

  • Instrument of hypothecation of goods.
  • Hypothecation of Book debts
  • Hypothecation of Movable Machinery

All Dated 10th October 2001 and related Millions one and the same charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs.7.817 Millions

 

Facilities                                                     Rs. In Millions

Cash Credit                                                   4.500

Term Loan I                                                   1.500

Term Loan II                                                  0.117

Letter of Credit                                              1.000

Guarantee                                                     0.700

 

Total                                                             7.817

 

Together with interest, Costs, Charges and other expenses which may be debited to the account from time to time.

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

Specific Charge

Hypothecation of CNC Machine and Computer, Moulds, Software and Laptop Purchased out of the sanctioned Term Loan I and II

 

Primary Security

Hypothecation of :

  • Stocks of raw materials, work in process and finished goods, consumables now being or hereafter during the continuance of this agreement brought into or upon or now or hereafter in course of transit to any godown at Chennai or other places of whatsoever and whosesoever in the procession or occupation of the company; and
  • All the Book debts now owing to the company and also the debts which may at any time during the continuance of this security become owing to the company in the course of its business by any person, firm company, or body corporate, or by the government central or state or Indian railways or any government department office or any municipal or local or public semi-government body or authority or any body corporate or undertaking or project whatever in the public sector.

 

  • All Movable machinery of the company including all stocks and spare parts both present and future belonging to the company being and lying in the company’s premises or godown of or rented by the company or otherwise used in connected with the business of the company, as security for the due repayment of the loan by the company to the bank by way of first charge.

4) Gist of the terms and conditions and extent and operation of the charge.

Cash Credit :

Interest 2% over PLR with a minimum of 13% with quarterly rests.

 

Margin :

Stocks – 25%

Receivables – 40%

 

Repayment Schedule of Terms Loan – I:

The Term Loan I of Rs.1.500 Millions is to be repaid in 31 installments @ Rs.48.500/- per month commencing from the next month after disbursement.

 

Repayment Schedual of Term Loan – II

The Term Loan II of Rs.0.117 Millions is to be repaid in 12 installments @ Rs.9500/- per month commencing from the next month after disbursement. Interest to be serviced every quarter.

 

Letter or Credit :

Rate  : As Per Guidelines

Usance : 45 days

Margin : 25%

 

Guarantee :

Margin : 25%

Commission: As per guidelines.

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda

Chennai Main Branch, 28 Rajaji Salai, Chennai - 600001

6) Date  and brief description of instrument modifying the charge

Nil

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.

Nil

 

 

 

 

Trade Reference:

 

 

·         Ashok Leyland Limited, Chennai, Tamilnadu

·         Lucas TVS Limited, Chennai, Tamilnadu

·         Sara Lee H and BC India Private Limited, Chennai, Tamilnadu

 

 

 

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.42.64

UK Pound

1

Rs.83.00

Euro

1

Rs.66.00

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

46

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions