MIRA
INFORM REPORT
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Report Date : |
06.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
G. M. PENS INTERNATIONAL PRIVATE LIMITED |
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Registered Office : |
No. 2, Janakpuri, Velachery Bye Pass Road, Velachery, Chennai –605042, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.02.1995 |
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Com. Reg. No.: |
59-62444 |
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CIN No.: [Company
Identification No.] |
U35991TN1995PTC06244 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEG02015G |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturing and Marketing of Writing Instruments |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 2330730 |
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Status : |
Good |
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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 fine track.
Trade relations are fair. Business is active. Fundamentals are strong and
healthy. Payments are reported ass usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long
– run. |
LOCATIONS
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Registered Office / Sales Offices: |
No. 2, Janakpuri, Velachery Bye Pass Road, Velachery, Chennai –605042, Tamilnadu, India |
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Tel. No.: |
91-44-22454140 / 22454141 |
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E-Mail : |
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Website : |
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Head Office : |
76 Janakpuri, Velachery Road, Guindy, Chennai - 600 032, Tamilnadu, India |
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Tel. No.: |
91-44-22454140 / 41 / 2735 |
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Fax No.: |
91-44-22452394 |
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Area: |
30000 sq. fts. |
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Corporate Office : |
Plot No. 30, Main Road, Anna Nagar, North Extension, Pondichery – 605005, India |
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Tel. No.: |
91-413-2200003 |
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Fax No.: |
91-44-22452394 /413-2200262 |
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Factory : |
Unit
No. 1
Plot No. A-10, PIPDIC Industrial Estate, Sedarapet, Pondicherry - 605 101. Unit
No. 2
R. S. No. 97/7, Villupuram Main Road, Thirubhuvanai Village, Pondicherry - 605 107. Unit
No. 3
Survey No. 38/1, Ekkattur Village, Chinglepet Taluk, Chaingaimgr District, Tamilnadu. Chennai
Unit
Old Mahabalipuram Road, Chennai, Tamilnadu |
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Regional Offices : |
v No. 7C, Hansalaya Building, Barakhamba Road, New Delhi – 110001 Tel. No. 91-11-23320818/23320819 Fax. No. 91-11-23320844 Email: ho@gmpens.com v 301-303, Rudresh Commercial Complex, 19th Road, Near Ambedkar Garden, Chembur, Mumbai – 400071, Maharashtra, India Tel. No. 91-22-25294405/25294406/25294407 Fax. No. 91-22-25294408 Email: ho@gmpens.com v JR Mullick Peribai Estate, Flat No. 2E, 2nd Floor, 16/7/2B, Keyatala Road, Kolkata – 700029, West Bengal, India Tel. No. 91-33-24645533/24645460/24633275 Fax. No. 91-33-24649100 Email: ho@gmpens.com v 3F, “Nazrana Towers”, III Floor, 38/2259 MG Road, Ernakulam, Kochi – 682035, Kerala Tel. No. 91-484-2371868 Fax. No. 91-484-2371868 v First Floor, H. No. 1-2-234/13/37 and 38, Hyderabad – 500029, Andhra Pradesh Tel. No. 91-40-27600423/27621257 Fax. No. 91-40-27600423 v No. 8, Kuppu Muthu Mudali Street, Triplicane, Chennai – 600005, Tamilnadu Tel. No. 91-44-28514103/28514104 Fax. No. 91-44-28514103 |
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Branch Office : |
No. 36/2, First Floor, II Cross, Kumara Park West, Bangalore – 560020, Karnataka, India |
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Tel. No.: |
91-80-23360878 |
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Fax No.: |
91-80-23360878 / 23461978 |
DIRECTORS
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Name : |
Mr. P Gurunathan |
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Designation : |
Director |
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Address : |
44 (Old No. 33/1) First Floor, Besant Avenue Road, Adyar, Chennai –
600 020, Tamil Nadu, India |
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Date of Birth/Age : |
15.06.1960 |
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Name : |
Mr. K Mohammed Meeran |
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Designation : |
Director |
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Date of Birth/Age : |
16.09.1944 |
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Date of Appointment : |
10.02.1995 |
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Name : |
Mr. S Abdul Khader |
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Designation : |
Director |
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Date of Birth/Age : |
29.10.1954 |
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Date of Appointment : |
10.02.1995 |
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Name : |
Mr. Indrakumar Mahendran |
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Designation : |
Director |
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Date of Birth/Age : |
27.09.1954 |
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Date of Appointment : |
20.12.1995 |
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Name : |
Mr. N Gomathinayagam |
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Designation : |
Director |
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Date of Birth/Age : |
12.07.1936 |
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Date of Appointment : |
20.02.1997 |
KEY EXECUTIVES
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Name : |
Mr. P Gurunathan |
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Designation : |
Secretary |
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Date of Birth/Age : |
15.06.1960 |
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Date of Appointment : |
11.12.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
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Mr. K Mohamed Meeran |
2250000 |
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Mr. S Abdul Khader |
250000 |
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Mr. Indra Kumar Majendran |
100000 |
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M/S Isada Holdings Limited |
2400000 |
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Total |
5000000 |
Equity Shares Breakup (Percentage of Total Equity):
(As on 31.03.2007)
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Sr. No. |
Category |
Percentage |
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1 |
Foreign Holdings (FIIs / FFIs / NRIs / OCBs) |
50.00 |
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2 |
Directors or relative of directors |
50.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Writing Instruments |
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Products : |
v Ball Pens v 040 Bold v 045 Fine Carbure v Electro v Vista v Vegapoint v Office Rite v Fusion v Champ v Euroslim v Gel Pens v Jetter Range v Speciality Pens v Artoons Colouring Range v Markers and Highlighters v Click Pencils v Portable White Boards v Gifting ideas. |
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Brand Names : |
“REYNOLDS” |
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Exports : |
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Countries : |
v Bangladesh v Singapore v Malaysia v Indonesia v Eastern Countries. |
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Imports : |
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Products : |
v T.P. v Nozzles v Ink |
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Countries : |
v France v Germany v Switzerland v Thailand |
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Terms : |
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Selling : |
Contract and Cash terms. |
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Purchasing : |
Contract (30 days), Cash and L/C terms |
GENERAL
INFORMATION
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Customers : |
v Wholesalers v Retailers v Bayer ABS Limited, India v L. G. Polymers Private Limited, India v Multi-Flex Lami Print Limited, India v Reynolds, France v Targor GmbH, Germany v Melcoplast, France v Bayer Premier Company Limited, Thailand v Kaltband, Switzerland |
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No. of Employees : |
Around 200 (25 persons in office and 175 persons in factory.) |
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Bankers : |
v Bharat Overseas Bank Limited Habeeb Towers, No. 756, Rajaji Salai, Chennai - 600 001, Tamilnadu, India v Bharat Overseas Bank Limited Mission Street, Pondicherry – 605 101 v State Bank of India Overseas Branch, No. 39, Rajaji Salai, Chennai - 600 001, Tamilnadu, India v IndusInd Bank Limited No. 3, Village Road, Nungambakkam, Chennai - 600 034, Tamilnadu, India v IndusInd Bank Limited IndusInd House, 425 Dadasaheb Bhadkamkar Marg, Mumbai – 400 004, Maharashtra, India v Indian Overseas Bank 762 Anna Salai, Chennai – 600 002, Tamilnadu, India v Standard Chartered Grindlays Bank Limited Pondicherry , India v HDFC Bank Limited v Axis bank Limited No 82 Dr. Radhakrishnan Salai, Mylapore -, Chennai – 600 004, Tamil Nadu, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Khaja and Sait Chartered Accountants |
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Address : |
No. 11 (Old No. 6) Wallajah Road, Chepauk, 1st Floor,
Chennai - 600021, Tamilnadu, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 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 |
50.000 |
50.000 |
50.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
416.146 |
400.622 |
366.483 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
466.146 |
450.622 |
416.483 |
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LOAN FUNDS |
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1] Secured Loans |
291.941 |
239.019 |
242.469 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
291.941 |
239.019 |
242.469 |
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DEFERRED TAX LIABILITIES |
27.536 |
27.536 |
27.535 |
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TOTAL |
785.623 |
717.177 |
686.487 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
267.181 |
270.232 |
279.154 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
3.490 |
3.490 |
7.269 |
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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 |
452.825
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415.055 |
386.390 |
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Sundry Debtors |
188.789
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144.130 |
106.261 |
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Cash & Bank Balances |
45.289
|
6.692 |
17.129 |
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Other Current Assets |
0.000
|
0.000 |
1.415 |
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Loans & Advances |
151.387
|
116.175 |
100.493 |
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Total
Current Assets |
838.290
|
682.052 |
611.688 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
323.338
|
238.597 |
211.624 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
323.338
|
238.597 |
211.624 |
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Net Current Assets |
514.952
|
443.455 |
400.064 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
785.623 |
717.177 |
686.487 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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1525.014 |
1393.864 |
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Other Income |
|
4.194 |
4.984 |
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Total Income |
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1529.208 |
1398.848 |
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Profit/(Loss) Before Tax |
|
34.326 |
15.640 |
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Provision for Taxation |
|
0.000 |
0.000 |
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Profit/(Loss) After Tax |
|
34.326 |
15.640 |
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Export Value |
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26.981 |
20.051 |
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Expenditures : |
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Raw Material Consumed |
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827.237 |
685.335 |
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Increase/(Decrease) in Finished Goods |
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(36.270) |
45.298 |
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Salaries, Wages, Bonus, etc. |
|
88.667 |
75.856 |
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Managerial Remuneration |
|
3.536 |
3.111 |
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Payment to Auditors |
|
0.696 |
0.713 |
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Interest |
|
23.783 |
18.514 |
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Insurance Expenses |
|
3.046 |
3.966 |
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Power & Fuel |
|
10.324 |
8.954 |
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Depreciation & Amortization |
|
46.819 |
51.947 |
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Other Expenditure |
|
526.844 |
489.514 |
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Total Expenditure |
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1494.882 |
1383.208 |
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KEY RATIOS
|
PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
--
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2.24 |
1.12 |
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Net Profit Margin (PBT/Sales) |
(%) |
--
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2.25 |
1.12 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
--
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2.24 |
1.12 |
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Return on Investment (ROI) (PBT/Networth) |
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--
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0.08 |
0.04 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.69
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0.53 |
0.51 |
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Current Ratio (Current Asset/Current Liability) |
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2.59
|
2.86 |
2.89 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
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Corporation identity number or foreign company registrations number of
the company |
U35991TN1995PTC062444 |
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Name of the company |
G. M. PENS INTERNATIONAL PRIVATE LIMITED |
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Address |
No. 2, Janakpuri, Velachery Bye Pass Road, Velachery, Chennai – 605 042, Tamilnadu, India |
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This Form is for |
Modification of charge |
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Type of Charges |
· Immovable Property · Book Debts · Movable Property · Floating Charge |
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Particular of the charge holder
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Bharat Overseas Bank Limited Address: Nungambakkam Branch, “Prince Tower” New No. 53, College Road, Nungambakkam, Chennai – 600 006, Tamil,
Nadu, India Email : cmnungam@bharatoverseasbank.com
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Nature or description of the instrument creating charge |
Letter No. CR /2872/2007 dated 27.03.2007 issued by Bharat Overseas
Bank Limited confirming the release of title deeds of property at 13,
Aralvaimozhi Village, Thovalai Taluk, Kanyakumari District. |
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Date of the instrument creating charge |
27.03.2007 |
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Amount Secure by the charge |
Rs. 314.950 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest : Current Interest rates: Bharat Overseas Bank Limited : Cash Credit – PLR (Minimum 12.5% p.a )
WCDL / FCL –PLR (Min. 9.50% p.a) / LIBOR + 2% p.a Demand Loan PLR Less 2%
(Min. 10.50%p.a) Indus Ind Bank Limited : FCNR –LIBOR +3% p.a HDFC Bank Limited : FCNR – Libor +2% p.a Or such other rates as may be specified by the banks from time to
time. Terms of repayment: Term Loan repayable as agreed to by the bank Margin: 25% on Fund based working capital facilities. 5% on LC and Letter of
guarantee facilities Extent and operation of the
charge: the whole of the company present and future current assets comprising
of stock in trade / book debts receivables and claims , machineries and
equitable mortgage on specific properties shall be held on pari passu basis
by the existing consortium banks viz. Bharat Overseas Bank Limited, Indusind
Bank Limited and HDFC Bank Limited |
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Short particulars of the Property charged |
The whole of the company present and future current assets comprising
of sock in trade / Book debts / Receivables and claims, machineries wherever
located and equitable mortgage of specific properties. |
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The company had created an equitable mortgage by deposit title deeds
of various properties including the property situated at 13, Aralvaimozhi
village, Thovalai Taluk, Kanyakumari District. At the request of the company the
title deeds of the above mentioned property has been released by the bank and
hence thee equitable mortgage on this property is cancelled. |
History:
The company was promoted by Mr. K. Mohamed Meeran in technical tie-up with Reynolds of France.
The company was converted into a deemed public limited company acquiring a major share of its holding.
Recently, the company was converted into a private limited liability company.
The company is the exclusive licensee of Reynolds, France in India and the SAARC Countries. Headquartered in Chennai, The company had pioneered the writing instruments revolution in the Indian Market. Commencing operations in 1986, the company brought international quality writing instruments that were value for money, marketed under the brand name Reynolds. It was also the first company to build a brand in a category that behaved more like a commodity till then.
Over a period of 16 years the company has invested substantially in building up a large manufacturing base with facilities in Chennai and Pondichery. A state of the art R & D facility, one of the most sophisticated in the Reynolds family worldwide, ensures that the latest in writing technology is available to the Indian consumers.
Other Information:
Its' manufacturing capacity is 40 million Ball Pens per month.
As Per Website
Details
Subject is the exclusive licensee of Reynolds, France, in India and the SAARC countries. Headquartered in Chennai, subject has pioneered the writing instruments revolution in the Indian market. Commencing operations in 1986, subject introduced to India, international quality writing instruments, and marketed them under the brand name Reynolds. It was also the first company to build a brand in a category that behaved more like a commodity till then.
Over the last 20 years, subject has invested substantially in building a large manufacturing base with facilities in Chennai and Pondicherry. A state of the art R and D facility, one of the most sophisticated in the Reynolds family worldwide, has ensured that the latest in writing technology is available to the Indian consumers.
The company offers the widest range of writing instruments and accessories in the Indian market. A variety of writing instruments including ball pens, gel pens, fountain pens, mechanical pencils, markers, handy boards and childrens colouring pens that cater to consumers from the age group of six to sixty are marketed under the brand name Reynolds. A continuous focus on consistent quality and a constant endeavour to provide quality products at affordable prices have ensured that Reynolds has been the numero uno in the Indian writing instruments market. A substantial investment has also been made in establishing the Reynolds brand name through the mass media, especially through television and press ads, in an effort to convert the category from a commodity to a brand dominated one.
The company's products are available in three hundred thousand retail outlets across India covered through a network consisting of 1800 redistribution stockists and 27 main stockists. This is facilitated by a sales and marketing team of over 300 professionals.
The French connection
Established in 1927 at la Ferte'-Milon in France, Reynolds has over the past eight decades been a leader in writing instruments in Europe and the rest of the world. In 1946, the headquarters and factory were shifted to Valence, in the south of France. The company is headquartered at Valence till date.
With 450 employees, Reynolds, France has a daily production of 4 million writing instruments. Of this, exports account for 50% of sales. It has a worldwide market presence in 80 countries around the globe. Reynolds has 12 of its own manufacturing units established in Africa, Asia and the Middle East.
The year 1999 was a landmark year in the history of Reynolds. Since then it has been a member company of Sanford Corporation, USA. Sanford is a US $ 1.2 billion company. Sanford is in turn the writing instruments division of the US $ 7 billion Newell Rubbermaid group. Sanford has the broadest range of writing, marking, colouring and drawing products worldwide.
Features:
v Power grip for effortless writing
v Electrifying design to match the ambition
v Stylish metallic clip to suit the attire
v New Vega tip for smooth writing
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 :
The 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.
The 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. 44.37 |
|
UK Pound |
1 |
Rs. 78.09 |
|
Euro |
1 |
Rs. 63.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|