MIRA
INFORM REPORT
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Report Date : |
17.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
A V K ENTERPRISES PRIVATE LIMITED |
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Registered Office : |
Tanishq Show Room, AVK Arcade, Omalur Main Road, Opposite To New Bus
Stand, Salem – 636004, Tamilnadu. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.07.1999 |
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Com. Reg. No.: |
18-008933 |
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CIN No.: [Company
Identification No.] |
U29199TZ1999PTC008933 |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Subject have Franchisee of “Tanishq” show room (Tata Product) or Diamond,
gold Jewellery, watches etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company and franchises of “Tanishq” brand
of Jewellery manufactured by Tata. Trade relations are fair. Profit margin is under severe pressure.
Payments are correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. K. Anand Kumar |
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Designation : |
Managing Director |
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Contact No.: |
91-9842743322 |
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Date : |
15.11.2008 |
LOCATIONS
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Registered Office : |
Tanishq Show Room, AVK Arcade, Omalur Main Road, Opposite To New Bus
Stand, Salem – 636004, Tamilnadu, India. |
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Tel. No.: |
91-427-2333324 |
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Administrative Office : |
315-C, Omalur Main Road, Near Maruti Cplx, AVK Arcade, Opp. To New Bus
Stand, Salem – 636004, Tamilnadu, India. |
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Tel. No.: |
91-427-2333324 |
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Mobile No.: |
91-9842743322 (Mr. Anand Kumar) |
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E-Mail : |
btqsal@titan.co.in |
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Area : |
4000 sq.ft. |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. K. Anand Kumar |
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Designation : |
Managing Director |
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Address : |
327/C-1, Brindavan Road, AVK Nagar, Salem – 636004, Tamilnadu, India. |
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Qualification : |
BE, MBA |
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Date of Birth : |
09.01.1971 |
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Date of Appointment : |
14.07.1999 |
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Name : |
Mr. K. Balakumar |
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Designation : |
Director |
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Address : |
327/C-1, Brindavan Road, AVK Nagar, Salem – 636004, Tamilnadu, India. |
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Qualification : |
BE |
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Date of Birth : |
18.02.1972 |
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Date of Appointment : |
14.07.1999 |
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Name : |
Mr. C. Rajasekar |
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Designation : |
Director |
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Address : |
327/C-1, Brindavan Road, AVK Nagar, Salem – 636004, Tamilnadu, India. |
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Date of Birth : |
15.08.1967 |
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Date of Appointment : |
14.07.1999 |
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Name : |
Mr. T. Swarnaganesh |
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Designation : |
Director |
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Address : |
22 3rd Street, Balar Road, New Fairlands, Salem – 636016,
Tamilnadu, India. |
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Date of Birth/Age : |
20.05.1962 |
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Date of Appointment : |
14.07.1999 |
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PAN No.: |
00813287 |
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Name : |
Mr. R. Ramesh Chandar |
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Designation : |
Director |
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Address : |
315-C, Brindavan Road, AVK Nagar, Salem – 636004, Tamilnadu, India. |
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Qualification : |
B.Com |
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Date of Birth : |
13.02.1967 |
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Date of Appointment : |
08.06.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. T. Swarnaganesh |
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70 |
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Mr. C. Nagendran |
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60 |
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Mr. R. Jayachandar |
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15 |
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Mr. R. Ramesh Chandar |
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15 |
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Mr. R. Raul Chandar |
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80 |
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Mr. K. Anand Kumar |
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150 |
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Mr. K. Balakumar |
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130 |
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Mr. C. Rajasekar |
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70 |
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Total |
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590 |
AS ON 31.03.2006
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject have Franchisee of “Tanishq” show room (Tata Product) or
Diamond, gold Jewellery, watches etc. |
GENERAL
INFORMATION
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Customers : |
v End Users |
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No. of Employees : |
18 (in office ) |
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Bankers : |
137 Santham
Complex, Saradha College Road, Salem – 636016, Tamilnadu, India.
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Facilities : |
Ø Secured Loan of
Rs. 9.348 Millions (Canara Bank OCC) Ø Unsecured Loans
of Rs. 11.600 Millions (Standard Chartered Bank Limited) Ø They enjoy cash
credit facilities of Rs. 7.500 Millions (Indusind Bank Limited) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P.Parthiban and Company Chartered Accountant |
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Address : |
Cauvery 2/3 RMP Cross Street, Hasthampatti, Salem – 636007, Tamilnadu,
India. |
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Tel. No.: |
91-427-2149278 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2006
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000 |
Equity Shares |
Rs. 1000/- Each |
Rs.1.000 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
520 |
Equity Shares |
Rs. 1000/- Each |
Rs.0.520
Million |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2008 |
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Sales Turnover |
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110.000 |
Expected Sales (2008-09) : Rs.200.000 Millions
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.520 |
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2] Share Application Money |
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0.479 |
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3] Reserves & Surplus |
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0.201 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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1.200 |
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LOAN FUNDS |
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1] Secured Loans |
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9.348 |
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2] Unsecured Loans |
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11.601 |
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TOTAL BORROWING |
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20.949 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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22.149 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.714 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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27.059 |
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Sundry Debtors |
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0.812 |
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Cash & Bank Balances |
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2.260 |
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Other Current Assets |
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0.816 |
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Loans & Advances |
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0.000 |
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Total
Current Assets |
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30.947 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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10.515 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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10.516 |
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Net Current Assets |
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20.431 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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22.149 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover |
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46.731 |
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Other Income |
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0.068 |
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Total Income |
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46.799 |
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Profit/(Loss) Before Tax |
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0.101 |
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Provision for Taxation |
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0.075 |
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Profit/(Loss) After Tax |
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0.026 |
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Expenditures : |
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Administrative Expenses |
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1.088 |
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Purchases made for re-sale |
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56.108 |
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Increase/(Decrease) in Finished Goods |
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(27.059) |
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Interest |
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2.344 |
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Depreciation & Amortization |
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0.166 |
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Other Expenditure |
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14.051 |
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Total Expenditure |
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46.698 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
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PAT / Total Income |
(%) |
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0.05 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.21 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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0.30 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
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26.22 |
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Current Ratio (Current Asset/Current Liability) |
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2.94 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCES:
Ø
Mitra Communication – Salem.
Bankers Charges
Report as per Registry
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Name of the company |
A V K
ENTERPRISES PRIVATE LIMITED |
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Presented
By |
Mr. K. Anand Kumar (Managing Director) |
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1) Date and description of instrument creating the change |
Agreement of
Hypothecation deed Dated :- 03.12.1999 to secure stock-in-trade and Receivables
– First Charge. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.000 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
various types and models of gold and diamond Jewellery of different carats
and receivables. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Running Account :
Repayable on demand subject to review Interest will be
charged at the rate of 14.50% per annum compounded monthly and at rates fixed
from time to time. To maintain a
margin of 30% of the hypothecation stock-in-trade and book debts. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank,
Branch: - Alagapuram, Salem -636 016, Tamilnadu, India. |
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6) Date and brief description of instrument modifying the charge |
Supplimental
agreement and book debts agreement Dated: - 28.07.2003 and link letter of the
same date. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Enhancement of
open cash credit limit from Rs. 5.000 Millions to Rs. 6.000 Millions. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U29199TZ1999PTC008933 |
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Name of the
company |
A V K ENTERPRISES
PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
1/110 Thirumal
Nagar, Alagapuram, Salem – 636004, Tamilnadu, India. |
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Type of charge |
Book Debts Movable Property
(not being pledge) |
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Particular of charge
holder |
Indusind Bank Limited 137 Santham Complex, Saradha College Road, Salem – 636016, Tamilnadu,
India. Email :- satn@indusind.com |
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Nature of
description of the instrument creating or modifying the charge |
Agreement for
hypothecation of stocks, book debts and receivables Dated:- 28.09.2006 |
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Date of
instrument Creating the charge |
28.09.2006 |
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Amount secured by
the charge |
Rs.7.500 Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 4% over presently
14.50% with a minimum of 10.50% Terms of Repayment On Demand Margin 25% Extent and operation of the charge First charge on the
current assets to secure the repayment of the credit facility extended by the
bank. |
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Short particulars
of the property charged |
Stock-in-trade of
all kinds of Tanishq Branch Jewellery and receivables. |
FIXED ASSETS
Ø Computer System
Ø Office Equipments
Ø Furniture And Fixture
Ø TV For Monitor
Ø Interior Decorations
Ø Audio Systems
Ø Electronic Balance
Ø Motor Cycle
Note:
There was no employee drawing a salary of
Rs.0.050 Million per month or Rs. 0.600 Million per annum either on full time or
part time basis during the year.
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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
41 |
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 |
|