MIRA
INFORM REPORT
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Report Date : |
31.10.2008 |
IDENTIFICATION DETAILS
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Name : |
SHAKTHI KNITTING LIMITED |
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Registered Office : |
No.1, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.05.1991 |
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Com. Reg. No.: |
08-20736 |
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CIN No.: [Company
Identification No.] |
U17301TN1991PLC020736 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES03313C |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Readymade Knitted Garments |
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 1100000 |
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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 made as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
No.1, 3rd Street, padmanabha Nagar,
Adyar, Chennai – 600 020, Tamil Nadu,
India |
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E-Mail : |
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Websites : |
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Factory : |
Shakthi Centre, Nochipalayam Road, Veerapandi
(Po), Tirupur - 641 605, Tamil Nadu,
India. |
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Tel. No.: |
91- 421-2214464 / 5511555 |
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Fax No.: |
91-421 -2210764 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. S K Vivekananda |
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Designation : |
Director |
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Name : |
Mr. P R Sundaravadivelu |
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Designation : |
Chairman |
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Name : |
Mr. P Vijaya Kumar |
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Designation : |
Director |
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Name : |
Mr. S Vasanth Kumar |
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Designation : |
Joint Managing Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Readymade Knitted Garments |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sri Company Chartered Accountants |
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Address : |
No. 27 Ramakrishna Street, North Usman Road,
T. Nagar, Chennai – 600 017, Tamil Nadu, India |
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Associates/Subsidiaries : |
NIL |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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600000 |
Equity Shares |
Rs. 100/- each |
Rs. 60.000 millions |
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400000 |
Preference Shares |
Rs. 100/- each |
Rs. 40.000 millions |
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Total
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Rs.100.000
millions |
Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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210000 |
Equity Shares |
Rs. 100/- each |
Rs. 21.000 millions |
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300000 |
Preference Shares |
Rs. 100/- each |
Rs. 30.000 millions |
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Total |
Rs.51.000
millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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210000 |
Equity Shares |
Rs. 100/- each |
Rs. 21.000 millions |
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185000 |
Preference shares |
Rs. 100/-
each |
Rs.18.500
millions |
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Total |
Rs.39.500 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 |
39.500 |
41.000 |
51.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
171.408 |
156.793 |
184.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
210.908 |
197.793 |
235.100 |
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LOAN FUNDS |
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1] Secured Loans |
674.429 |
757.700 |
712.300 |
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2] Unsecured Loans |
101.500 |
21.582 |
25.700 |
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TOTAL BORROWING |
775.929 |
779.282 |
738.000 |
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DEFERRED TAX LIABILITIES |
60.578 |
59.792 |
0.000 |
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TOTAL |
1047.415 |
1036.867 |
973.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
578.229 |
608.705 |
496.300 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
15.721 |
15.721 |
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 |
84.702
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231.747 |
387.500 |
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Sundry Debtors |
503.171
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256.515 |
146.300 |
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Cash & Bank Balances |
16.120
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9.130 |
26.400 |
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Other Current Assets |
34.098
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45.238 |
0.000 |
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Loans & Advances |
42.423
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10.449 |
41.400 |
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Total
Current Assets |
680.514
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553.079 |
601.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
227.049
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140.638 |
116.800 |
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Provisions |
0.000
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0.000 |
8.000 |
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Total
Current Liabilities |
227.049
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140.638 |
124.800 |
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Net Current Assets |
453.465
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412.441 |
476.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1047.415 |
1036.867 |
973.100 |
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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 |
1282.740 |
1049.690 |
887.800 |
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Other Income |
0.000 |
0.000 |
54.600 |
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Total Income |
1282.740 |
1049.690 |
942.400 |
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Profit/(Loss) Before Tax |
18.270 |
9.220 |
44.900 |
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Provision for Taxation |
0.240 |
1.300 |
13.000 |
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Profit/(Loss) After Tax |
18.030 |
7.920 |
31.900 |
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Export Value |
602.670 |
755.970 |
NA |
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Import Value |
23.060 |
58.010 |
NA |
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Expenditures : |
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Manufacturing Expenses |
NA |
NA |
86.300 |
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Administrative Expenses |
NA |
NA |
22.400 |
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Raw Material Consumed |
NA |
NA |
740.100 |
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Increase/(Decrease) in Finished Goods |
NA |
NA |
[208.500] |
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Salaries, Wages, Bonus, etc. |
NA |
NA |
37.300 |
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Interest |
61.010 |
52.520 |
53.900 |
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Power & Fuel |
NA |
NA |
25.400 |
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Depreciation & Amortization |
39.870 |
38.020 |
32.100 |
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Other Expenditure |
1163.590 |
949.930 |
108.500 |
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Total Expenditure |
1264.470 |
1040.470 |
897.500 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
1.41
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0.75 |
3.38 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.42
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0.88 |
5.06 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.43
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0.78 |
4.09 |
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Return on Investment (ROI) (PBT/Networth) |
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0.09
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0.05 |
0.19 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.76
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4.65 |
3.67 |
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Current Ratio (Current Asset/Current Liability) |
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2.99
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3.93 |
4.82 |
LOCAL AGENCY FURTHER INFORMATION
Operations:-
During the year, the company achieved an improved turnover of Rs. 1282.74 millions as against Rs.
1049.69 millions in the previous year. After providing for interest,
depreciation and income Tax the company has earned surplus to the tune of Rs. 86.25 millions as against the surplus available for
appropriation is Rs. 71.73 millions in the previous
year. The company has achieved better performance in spite of Rupee
Appreciation against USD and stiff competitions at the National as well as
International Markets. The company is highly committed to the customer
satisfaction by providing quality products and timely delivery and also are
maintaining the standard norm as suggested in the WRAP and ISo certifications.
The company has started a new business venture to supply “Ready to Cut”
Fabric to manufacturer of Garments. This segment has picked up very well and
produced impressive results.
Future
The company is committed to achieve greater heights in future by focussing on high yield orders at the international level
and supplying “Ready to cut” Fabric at the National level. In addition, the
company is explor5ing the possibility of promoting own Garment Brands for local
market and also diversification in new fields.
Finance
The company has undertaken a restructuring of its financial mix, which
has resulted in the reduction of secured loans. During the company has repaid
Term Loan to the extent of Rs. 71.12 millions
Technology Upgradation
The company has succeeded in the integration of all its production
facilities for the production of garments. The adoption of new Technology has
resulted in the following advantages
· Highest customer satisfaction and obtaining repeat orders from them
· Elimination of human and communication errors in the process stage
· Consistency in quality and thus eliminating rejections/ reprocessing, which improves profitability
· Maximized productivity yield larger volumes at reduced cost of operation.
fixed ASSETS:-
· Land
· Building
· Plant and Machinery
· Computer
· Office equipments
· Furniture and Fittings
· Vehicles
PRESS RELEASES:
Coimbatore, April 26
THE Tirupur-based Shakthi
Knitting Ltd, a 100 per cent knitted garment exporting unit, has set up an
independent textile processing unit called `Colorsburg'
at the Perundurai Sipcot
Industrial Estate near Erode.
The modern dyeing and finishing plant, set up at a cost of Rs 300 millions, is fitted with advanced dyeing and
finishing machinery, including a soft-flow dyeing machine from Sclavos, with central dye-house management software and dye
dispensing machinery.
The processing house is also equipped with fabric finishing machinery
that handles tubular and open-width processing and compacting, heat setting and
raising machinery, besides pre/post-dyeing (colour
monitoring) instruments.
Said to be the first plant in the Tirupur area
capable of processing 3.2-metre width fabric, Colorsburg
will meet 90 per cent of the company's in-house processing requirements.
With an installed capacity to process 13 tonnes
per day, the dye house, which has commenced commercial operation, processes 10 tonnes of knitted fabrics. Over 70 per cent of the
processing is for captive use by the parent company, which mostly exports
garments to the EU.
According to the Managing Director, Shakthi
Knitting, Mr S. K. Vivekananda, Colorsburg
was set up as a backward integration step to the company's garmenting
operation, as it found that outsourcing fabric processing in sensitive knitted
garmenting was costlier, both in terms of meeting quality parameters and
adhering to delivery schedules.
Garment exporters spent two-thirds of the lead-time prescribed by the
importers on fabric processing, including fabric engineering, Mr Vivekananda said. Shakthi
Knitting achieved an export turnover of Rs 350
millions as of end-March 2001.
The company has been accredited as a `preferred' vendor by Du Pont, the US synthetic fibre
company for its garmenting facility.
The Austrian fibre manufacturers, Lenzing AG, which is on the look out for a textile
processing house to process man-made cellulosic fibre-based fabric, recently visited the company's new
dyeing and finishing plant at Perundurai.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.77 |
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UK Pound |
1 |
Rs.79.78 |
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Euro |
1 |
Rs.63.36 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
---- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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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 |
YES |
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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 |
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54 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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