MIRA INFORM REPORT

 

 

 

Report Date :

05.11.2008

 

IDENTIFICATION DETAILS

 

Name :

EASWARI KNITTING

 

 

Registered Office :

51815, SF No. 285A and 284A, Pitchampalayam Pudur (Post) P N Road, Tirupur, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Year of Establishment :

1967

 

 

Legal Form :

Partnership concern with an unlimited liability of the partners.

 

 

Line of Business :

Manufacturers of Mens and Ladies Garments

 

 

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 10000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

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

 

Nothing adverse reported.

 

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

 

 

INFORMATION PARTED BY

 

Name :

Mr. Pandyan

Designation :

Export Manager

Date :

25.10.2008

 

 

LOCATIONS

 

Registered Office :

5/815, SF No. 285A and 284A, Pitchampalayam Pudur (Post) P N Road, Tirupur – 641 603, Tamilnadu, India

Tel. No.:

91-421-2472892 / 2472893 / 2478417 / 2479052

Fax No.:

91-421-2472891 / 2480298

E-Mail :

eswari@eth.net

eswari@vsnl.com

Website :

www.eswariknitting.com

Area :

10000 Sq. ft.

Location :

Owned

 

 

Factory :

K 14-16 and K 27-29, 4th Cross, Sipcot Industrial Estate, Perundurai, Tamilnadu, India

Tel. No.:

91-4292-234457 / 234448

 

 

PARTNERS

 

Name :

Mr. R Balan

Designation :

Partner

Date of Birth/Age :

61 Years

Qualification :

Under Graduate

 

 

Name :

Mr. B Baskaran

Designation :

Partner

Date of Birth/Age :

38 Years

Qualification :

Diploma in Textile Technology

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Mens and Ladies Garments

 

 

Products :

Mens and Ladies Garments for All Seasons in All Styles in All Fabrics.

 

 

Exports :

 

Products :

Readymade Garments

Countries :

·         USA

·         South Africa

 

 

Imports :

 

Products :

Raw Materials

Countries :

·         Singapore

·         Italy

·         UK

 

 

Terms :

 

Selling :

L/C – Advance

 

 

Purchasing :

Credit (25 to 30 days) – Advance

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

 

 

No. of Employees :

100

 

 

Bankers :

State Bank of India, Overseas Branch

 

 

Facilities :

The Concern reported to enjoy Cash Credit facility from it’s banks.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

T R Ramanathan and Company

Chartered Accountants

 

 

Associates/Subsidiaries :

·         Eswari Garments

·         Eswari Textile

·         Victus Associates 

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs.2.000 millions (Estimated)

Borrowed :

-

Total :

Rs.2.000 millions (Estimated)

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2008

Sales Turnover

 

 

50.000

 

Expected Sales (2008-09) : Rs.100.000 millions

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trade References

 

·         Geena Garments, Near to Eswari

·         Sriram Knits, Near to Eswari

 

Web Details

India's knitwear manufacturers, exporters and Government of India recognised Export House, Located at Tirupur in India. India's knitwear manufacturing town with tremendous infrastructure and human skills.

Subject works was founded in 1957 and started its own exports by 1985. The ever demanding patronage of the valuable customers led to success in the mission to make the knitwear the best. The quality set new standards in meeting the growing knitwear infrastructure, parallel to the mammoth growth of fashion industry in the country. The precepts and standards remain uncharged to the core, giving them a solid foundation to produce knitwear of highest quality, retaining ourselves as one of the best manufacturers and exporters of knitwear. 

Clothing is a part of living. It has been the perpetual Mission to provide advanced fabric to adorn every person and create comfortable clothing horizons. A business life is endless. The ideal foundation for optimistic operation lies on better scientific administration and multi-production to enhance the competitiveness of the products. 

Superior quality, reasonable prices, prompt delivery, keeping commitment and better service are the product polices to serve the every patron.

 

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.48.62

UK Pound

1

Rs.76.71

Euro

1

Rs.61.30

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

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

 

45

 

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