MIRA
INFORM REPORT
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Report Date : |
22.11.2008 |
IDENTIFICATION DETAILS
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Name : |
DANALAKSHMI PAPER MILLS PRIVATE LIMITED |
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Registered Office : |
31 [Old No. 10-Z] |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.01.1980 |
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Com. Reg. No.: |
000899 |
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CIN No.: [Company
Identification No.] |
U21012TZ1980PTC000899 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBD03017A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, Exporter and Importer of Stationery Papers, inks 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 580000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Trade relations are fair. Business is active. Payments are reported as usually correct
and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED BY
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Name : |
Mr. Ganesh |
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Designation : |
General Manager Finance |
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Date : |
20.11.2008 |
LOCATIONS
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Registered Office : |
31 [Old No. 10-Z] |
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Tel. No.: |
91-422-4333344 |
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Fax No.: |
91-422-4333355 |
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E-Mail : |
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Area : |
1000 Sq. fts. |
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Location : |
Owned |
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Mill : |
Paper Division: Vilampatti, Nilakottai, Taluka Dindigul District 624219 Engineering
Division: Chikkarampalayam, |
DIRECTORS
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Name : |
Mr. Ramaswamy R. Naidu |
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Designation : |
Director |
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Address : |
247 – B, New No. 210, Alagesan Road, Saibaba Colony, Coimbatore
641011, Tamilnadu, India |
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Date of Birth/Age : |
12.03.1939 |
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Date of Appointment : |
23.01.1980 |
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Name : |
Mr. Rudrappa Naidu |
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Designation : |
Director |
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Address : |
49H, |
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Date of Birth/Age : |
22.03.1933 |
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Date of Appointment : |
30.01.1980 |
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Name : |
Mr. Jeevanlatha Ramaswamy |
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Designation : |
Director |
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Address : |
247 – B, |
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Date of Birth/Age : |
26.02.1942 |
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Date of Appointment : |
01.01.1992 |
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Name : |
Mr. Shivram Prasad Gadda |
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Designation : |
Director |
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Address : |
44, |
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Date of Birth/Age : |
11.11.1964 |
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Date of Appointment : |
26.03.1990 |
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Name : |
Mr. Balakrishnan Sriramulu |
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Designation : |
Director |
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Address : |
188, Race Course, |
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Date of Birth/Age : |
27.04.1967 |
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Date of Appointment : |
10.06.2000 |
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Name : |
Shobana Shivram Prasad |
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Designation : |
Director |
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Address : |
247 – B, |
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Date of Birth/Age : |
18.06.1966 |
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Date of Appointment : |
10.06.2000 |
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Name : |
Nirupa Sri Ramulu |
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Designation : |
Director |
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Address : |
150 B, Tea Estate Compound, Race Course, |
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Date of Birth/Age : |
23.03.1969 |
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Date of Appointment : |
10.06.2000 |
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Name : |
Muthusamy D. Naidu |
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Designation : |
Director |
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Address : |
Muthalapuram Ethilode, Nilakottai Taluka, Dindigal 624219, |
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Date of Birth/Age : |
11.09.1949 |
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Date of Appointment : |
01.04.1992 |
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Name : |
Mr. R. Dhamodherun |
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Designation : |
Director |
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Address : |
Ayathnaa, 60A/49H, |
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Date of Birth/Age : |
22.03.1933 |
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Date of Appointment : |
30.01.1980 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders [As on 29.09.2007] |
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No. of Shares |
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R. Jeevanlatha |
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757520 |
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R. Dhamodherun |
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19200 |
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R. Ramaswamy HUF |
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694480 |
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Sujini |
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56400 |
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Jayanthi |
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56400 |
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D. Srivalli |
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18000 |
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Shobana Prasad |
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100 |
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Nirupa Sriramulu |
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1076450 |
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Nirupa Sriramulu |
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185650 |
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G. Venkatesh |
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84000 |
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Y. Shivaramprasad |
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100 |
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B. Sriramulu |
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100 |
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Total |
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2948400 |
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Equity Share
Break-up [As on 31.03.2007] |
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Percentage of
Holding |
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Directors or relatives of the Directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of Stationery Papers, inks etc. |
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Products : |
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Exports : |
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Products : |
·
Finished goods |
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Countries : |
·
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Imports : |
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Products : |
·
Raw materials |
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Countries : |
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Terms : |
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Selling : |
L/C, Credit [30 days] |
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Purchasing : |
Credit, D/P |
PRODUCTION STATUS [As on 31.03.2007]
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Particulars |
Unit |
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Installed
Capacity |
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Paper Division |
MT |
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20000 |
Engineering Division: It is not possible to
indicate precisely the installed capacity of each machine.
GENERAL INFORMATION
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No. of Employees : |
300 |
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Bankers : |
·
Indian Overseas Bank, ·
Canara Bank ·
State
Bank of Commercial
Branch, 1443, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Krishnamoorthy and Company Chartered Accountants |
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Address : |
No. 7, Street No. 1, S. N. Layout, |
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Associates/Subsidiaries : |
Sarvalakshmi Paper and Boards Address: 31 [Old No. 10-Z] |
CAPITAL STRUCTURE
[As on 31.03.2007]
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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4000000 |
Equity Shares |
Rs. 10/- each |
Rs. 40.000 Millions |
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100000 |
Preference Shares |
Rs. 100/- each |
Rs. 10.000 Millions |
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Total |
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Rs. 50.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2948400 |
Equity
Shares [of the above 2702700 shares allotted as
fully paid up Bonus shares by way of capitalization of Reserves] |
Rs. 10/-
each |
Rs. 29.484
Millions |
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 |
29.484 |
29.484 |
29.484 |
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2] Share Application Money |
10.000 |
10.000 |
10.000 |
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3] Reserves & Surplus |
78.254 |
46.860 |
37.022 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
117.738 |
86.344 |
76.506 |
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LOAN FUNDS |
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1] Secured Loans |
125.149 |
139.892 |
162.467 |
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2] Unsecured Loans |
20.843 |
33.200 |
6.500 |
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TOTAL BORROWING |
145.992 |
173.092 |
168.967 |
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DEFERRED TAX LIABILITIES |
41.774 |
27.584 |
18.019 |
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TOTAL |
305.504 |
287.020 |
263.492 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
217.093 |
201.818 |
191.887 |
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Capital work-in-progress |
0.000 |
18.543 |
2.647 |
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INVESTMENT |
38.000 |
0.000 |
0.000 |
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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 |
58.797
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60.169
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51.938 |
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Sundry Debtors |
35.258
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41.687
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63.955 |
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Cash & Bank Balances |
11.193
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10.761
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6.004 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
28.672
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25.970
|
18.993 |
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Total
Current Assets |
133.920
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138.587
|
140.890 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
75.461
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69.926
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71.071 |
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Provisions |
8.048
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2.002
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0.861 |
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Total
Current Liabilities |
83.509
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71.928
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71.932 |
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Net Current Assets |
50.411
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66.659
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68.958 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
305.504 |
287.020 |
263.492 |
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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 |
486.879 |
446.219 |
374.848 |
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Other Income |
37.968 |
37.599 |
31.595 |
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Total Income |
524.847 |
483.818 |
406.443 |
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Profit/(Loss) Before Tax |
51.832 |
20.870 |
0.988 |
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Provision for Taxation |
20.406 |
11.032 |
[4.070] |
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Profit/(Loss) After Tax |
31.426 |
9.838 |
5.058 |
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Earnings in Foreign Currency : |
35.620 |
45.109 |
NA |
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Total Imports |
80.422 |
138.625 |
NA |
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Expenditures : |
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Selling and Distribution Expenses |
9.999 |
10.703 |
23.400 |
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Raw Material Consumed |
239.498 |
237.174 |
185.376 |
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Bad debts written off |
1.124 |
0.307 |
0.015 |
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Consumption of stores and spares parts |
48.622 |
56.335 |
41.936 |
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Increase/(Decrease) in Finished Goods |
[1.616] |
[0.652] |
9.509 |
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Salaries, Wages, Bonus, etc. |
19.381 |
16.965 |
16.783 |
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Managerial Remuneration |
2.838 |
1.140 |
1.080 |
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Repairs and Maintenance |
7.029 |
6.685 |
5.265 |
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Power & Fuel |
98.384 |
92.036 |
79.734 |
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Interest and Financial charges |
13.741 |
14.528 |
18.829 |
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Depreciation |
16.958 |
14.642 |
14.373 |
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Other Expenditure |
17.057 |
13.085 |
9.155 |
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Total Expenditure |
473.015 |
462.948 |
405.455 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
5.99
|
2.04 |
1.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
10.65
|
4.68 |
0.26 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
14.77
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6.13 |
0.29 |
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Return on Investment (ROI) (PBT/Networth) |
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0.44
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0.24 |
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.95
|
2.84 |
3.15 |
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Current Ratio (Current Asset/Current Liability) |
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1.60
|
1.93 |
1.96 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
Paper Division:
Sales had gone up from Rs. 446.490 Millions to Rs. 486.879
Millions. Total quantity of paper sold
was 20224 MT against 19409 MT Sold during the previous year. Production also has gone up from 19344 MT to
20189 MT resulting in an increase of 4.37%.
Engineering
Division:
The turnover of the Engineering Division was Rs. 8.731 Millions during
the year and operations yielded good profits.
Finance
Working Capital facilities have been renewed by the company’s bankers
Indian Overseas Bank, State Bank of
Fixed Assets
·
Land
·
Building
·
Compound Walls
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Plant and Machinery
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Deinking Plant
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Effluent Treatment Plant
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Fire Equipment
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Lab Equipment
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Office Appliances
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Computer
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Furniture and Fittings
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Vehicles
·
Godown – Waste Paper
Form 8
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This form is for |
Modification of
charge |
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Charge
identification number of the modified |
90001206 |
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Corporate
identity number of the company |
U21012TZ1980PTC000899 |
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Name of the
company |
DANALAKSHMI
PAPER MILLS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
31 [Old No. 10-Z] |
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Type of charge |
Book Debts Immovable
Property |
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Particular of
charge holder |
State Bank of Commercial
Branch, 1443, E-mail: sbi.07536@sbi.co.in |
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Nature of description
of the instrument creating or modifying the charge |
Hypothecation
deed dated 14.08.2008 |
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Date of
instrument Creating the charge |
14.08.2008 |
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Amount secured by
the charge |
Rs. 35.000
millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest At SBAR which is
presently 12.25%. Terms of
Repayment On demand Margin 25% on raw
materials, SIP, FG and Stores 40% on
receivables 10% on LC and LG Extent and
Operation of the charge Upto CC Rs.
20.000 Millions, LC Rs. 14.000 Millions and LG Rs. 1.000 Millions |
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Short particulars
of the property charged |
Hypothecation of
raw materials, SIP, Finished goods and other current assets on pari passu basis and extension of second
charge on the fixed assets of the company pari passu basis. |
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Date of latest
modification prior to the present modification |
09.06.2007 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 50.03 |
|
|
1 |
Rs. 74.42 |
|
Euro |
1 |
Rs. 62.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--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 |
|
51 |
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 |
|