MIRA
INFORM REPORT
|
Report Date : |
12.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BEST INTERNATIONAL – UNIT OF BEST CORPORATION LIMITED |
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Formerly Known as : |
RRD TEX PRIVATE LIMITED |
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Registered Office : |
Best Industrial Estate, 89/ 2, Padmavthipuram, Avinashi Road, Tirupur
– 641 603, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.03.2004 |
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Com. Reg. No.: |
11016 |
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CIN No.: [Company
Identification No.] |
U17111TZ2004PLC011016 U17111TZ2006PLC013164 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBB03184G |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Cotton, Waste Cotton, Staple Fibre, Silk,
Artificial Silk, Rayon, Nylon, Plyster, Linen, Flax, Hemp, Jute and Wool. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3034845 |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Company’s
profitability is under pressure. The company has taken several loans from its
bank. Trade relations are fair. Payments are however reported as usually
correct and as per commitments. The company can be considered normal for business dealings with slight
caution, initially. |
LOCATIONS
|
Registered Office : |
Best Industrial Estate, 89/ 2, Padmavthipuram, Avinashi Road, Tirupur
– 641 603, Tamilnadu, India |
|
Tel. No.: |
91-421-3980000/ 2477477 |
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Fax No.: |
91-421-3980398/ 2473446 |
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E-Mail : |
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Factory : |
SF 379/ 1, Aathupalayam Pirivu Road, Aavaramapalayam, Tirupur, Coimbatore, India |
DIRECTORS
|
Name : |
Mr. Rajkumar Ramaswamy |
|
Designation : |
Director |
|
Address : |
4, Best Avenue, Rayapuram Main Road, Tirupur – 641 601, Tamilnadu,
India |
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Date of Birth/Age : |
16.10.1970 |
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Date of Appointment : |
20.10.2006 |
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|
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Name : |
Mr. S. Ramaswamy |
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Designation : |
Director |
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Address : |
1, Best Avenue, Rayapuram Main Road, Tirupur – 641 601, Tamilnadu,
India |
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Date of Birth/Age : |
08.03.1946 |
|
Other Directorship : |
Best Cotton Mills Private Limited U17115TZ1989PTC002417 Best Apparels Private Limited U18101TZ1992PTC003816 Best Colour Solutions India Private Limited U01712TZ2005PTC012004 R R D Tex Private Limited U17111TZ2004PTC011016 Best Knitwear Export Private Limited U17111TZ1989PTC002443 |
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Name : |
Mr. R. Rajkumar |
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Designation : |
Director |
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Address : |
379/1, Athupalayam Pirivu Road, Annupparpalayam, Tirupur – 641 652,
Tamilnadu, India |
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Date of Birth/Age : |
16.10.1970 |
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Other Directorship : |
Best Cotton Mills Private Limited U17115TZ1989PTC002417 Best Apparels Private Limited U18101TZ1992PTC003816 Best Colour Solutions India Private Limited U01712TZ2005PTC012004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity share breakup (Percentage of total equity)
As on 31.03.2007
|
Sr. No. |
Category |
Percentage |
|
1. |
Directors or relatives of directors |
100.00 |
|
|
Total |
100.00 |
LIST OF ALLOTTEES
As on 27.03.2006
|
Names of Allottees |
No. of Shares |
|
Mr. S. Ramaswamy |
189600 |
|
Mr. R. Rajkumar |
156400 |
|
Mr. R. Dhanapal |
97000 |
|
Mr. G. Ramaswamy |
5000 |
|
Total |
448000 |
LIST OF ALLOTTEES
As on 09.10.2006
|
Names of Allottees |
No. of Shares |
|
Mr. S. Ramaswamy |
30000 |
|
Mr. R. Rajkumar |
30000 |
|
Mr. R. Dhanapal |
30000 |
|
Mr. G. Ramaswamy |
2000 |
|
Mrs. R Arunadevi |
3000 |
|
Mr. D, Narmadha |
3000 |
|
Mrs. R. Banupriya |
2000 |
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Total |
100000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Cotton, Waste Cotton, Staple Fibre, Silk,
Artificial Silk, Rayon, Nylon, Plyster, Linen, Flax, Hemp, Jute and Wool. |
GENERAL
INFORMATION
|
Bankers : |
v Oriental Bank of
Commerce Plot No. 35 and 36, Binny Compound Complex, Kumaran Road, Tirupur –
641 601, Tamilnadu, India v State Bank of India Tirupur Main Branch, Tirupur, Coimbatore, Tamilnadu, India v Corporation Bank Main Branch, Tirupur – 641 602, Tamilnadu, India v State Bank of Mysore Tirupur Branch, 72, Appachi Nagar, Main Road, Coimbatore – 641 601, Tamilnadu, India |
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Banking Relations
: |
Satisfactory |
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|
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Auditors : |
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Name : |
A L T N and Company Chartered Accountants |
|
Address : |
Sabari Towers, KRR Lay Out , Main Street, Mangalam Road, Tirupur – 641
604, Tamilnadu, India |
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|
|
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Associates : |
Best Cotton Mills Private Limited U17115TZ1989PTC002417 Best Apparels Private Limited U18101TZ1992PTC003816 Best Colour Solutions India Private Limited U01712TZ2005PTC012004 R R D Tex Private Limited U17111TZ2004PTC011016 Best Knitwear Export Private Limited U17111TZ1989PTC002443 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1400000 |
Equity shares |
Rs. 100/- each |
Rs. 140.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
454000 |
Equity shares |
Rs. 100/- each |
Rs. 45.400 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
45.400 |
45.400 |
0.600 |
|
|
2] Share Application Money |
269.524 |
222.913 |
99.418 |
|
|
3] Reserves & Surplus |
294.427 |
0.137 |
0.021 |
|
|
4] (Accumulated Losses) |
(2.382) |
(2.679) |
0.000 |
|
|
NETWORTH |
606.969 |
265.771 |
100.039 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1906.603 |
964.731 |
65.705 |
|
|
2] Unsecured Loans |
56.730 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1963.333 |
964.731 |
65.705 |
|
|
DEFERRED TAX LIABILITIES |
293.854 |
0.000 |
0.012 |
|
|
|
|
|
|
|
|
TOTAL |
2864.156 |
1230.502 |
165.756 |
|
|
|
|
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|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
2032.486 |
993.959 |
62.567 |
|
|
Capital work-in-progress |
0.000 |
0.483 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
13.050 |
3.050 |
3.050 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
540.207
|
180.062 |
5.977 |
|
|
Sundry Debtors |
318.194
|
57.355 |
0.000 |
|
|
Cash & Bank Balances |
99.037
|
12.422 |
8.759 |
|
|
Other Current Assets |
54.566
|
0.000 |
0.000 |
|
|
Loans & Advances |
119.446
|
112.796 |
109.315 |
|
Total
Current Assets |
1131.450
|
362.635 |
124.051 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
259.048
|
124.840 |
24.267 |
|
|
Provisions |
53.782
|
4.785 |
0.168 |
|
Total
Current Liabilities |
312.830
|
129.625 |
24.435 |
|
|
Net Current Assets |
818.620
|
233.010 |
99.616 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.523 |
|
|
|
|
|
|
|
|
TOTAL |
2864.156 |
1230.502 |
165.756 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
1987.303 |
138.585 |
|
|
Other Income |
|
80.996 |
23.516 |
|
|
Total Income |
|
2068.299 |
162.101 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
(48.613) |
(1.109) |
|
|
Provision for Taxation |
|
0.000 |
0.129 |
|
|
Profit/(Loss) After Tax |
|
(48.613) |
(0.980) |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
|
1123.042 |
46.738 |
|
|
Increase/(Decrease) in Finished Goods |
|
(59.274) |
(8.135) |
|
|
Salaries, Wages, Bonus, etc. |
|
86.898 |
15.069 |
|
|
Payment to Auditors |
|
0.541 |
0.505 |
|
|
Interest |
|
116.202 |
28.872 |
|
|
Insurance Expenses |
|
3.513 |
0.945 |
|
|
Power & Fuel |
|
99.543 |
15.422 |
|
|
Depreciation & Amortization |
|
146.140 |
47.609 |
|
|
Other Expenditure |
|
600.307 |
16.185 |
|
Total Expenditure |
|
2116.912 |
163.210 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
(2.35)
|
(0.60) |
-- |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.45)
|
(0.80) |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.35)
|
(0.68) |
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
0.00 |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.49 |
0.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.62
|
2.80 |
5.08 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
|
Name of the company |
BEST CORPORATION LIMITED |
|
Presented By |
v Corporation Bank Main Branch, Tirupur – 641 602, Tamilnadu, India |
|
1) Date and description of instrument creating the change |
Agreement dated 28.06.2004 Common deed of hypothecation of movables assets debts form Id No., 908 for CC Cum PCL/ PCFC/ FDBN/ FDBP/ PSFC Common deed of hypothecation of movables/ assets/ debts form ID No. 908 for Inland/ Import LC and Bank Guarantee. Common Deed of hypothecation of movables/ assets/ debts form ID no : 908 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
CC Cum PCL/ PCFC/ FDBN/ FDBP/ PSCFC/ FDBD – Rs. 42.500 millions Inland / Import Letter of Credit Limit – Rs. 30.000 millions Bank Guarantee Limit – Rs. 20.000 millions Term Loan – Rs. 280.000 millions Total – Rs. 372.500 millions |
|
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 |
For CC Cum PCL/ PCFC/ FDBN/ FDBP/ PSCFC/ FDBD: Hypothecation of Inventory/ Book debts, Present and Future. For Inland / Import Letter of Credit Guarantee: Charge over current assets of the company For Term Loan : Hypothecation of entire Fixed Assets (except Land and Building) Both movable and Immovable of the company present and future. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The assets mentioned in S. No. 3, hypothecated by way of excusive charges for the amount mentioned in Sr. No. 2 |
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5) Name and Address and description of the person entitled to the charge. |
v Corporation Bank Main Branch, Tirupur – 641 602, Tamilnadu, India |
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6) Date and brief description of instrument modifying the charge |
Memorandum of deposit of title deeds dated 13.06.2005 |
|
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. |
The Existing Limit of Rs. 372.500 millions presently secured by charge on movable properties is further secured by Equitable Mortgage by deposit of title deeds dated 13.06.2005 on the following properties. v In SF No. 582 Land Measuring 3.60 Acres numbered as 27 and 28 measuring 316 x 992 (Out of 165.50 Acres) of land owned by Netaji Apparel part in Eettiveeramapalayam Village, in Tirupur Taluka, In Avinashi Registration District. v In Resurvey No. 607, Land Measuring 13.08 Acres (Old SF No. 373/A out of 13.99 Acres) In Surianallur Village, Dharapuram sub Registration District Erode Registration District. v In SF No. 67/2B, 67/2F, 67/2G, 67/2C, 67/2E, and 67/21 admeasuring 2.00 Acres in Irrukanthurai Village, Valliyoor Panchayat Union, Radhapuram Taluka, Tirunelveli District. v In SF No. 13 admeasuring 2.00 Acres in Irrukanthurai Village, Valliyoor Panchayat Union, Radhapuram Taluk, Tirunelveli District. v In SF No. 377/ 1A2A, Admeasuring 1.63 Acres Irrukanthurai Village, Valliyoor Panchayat Union, Radhapuram Taluka, Tirunelveli District. v IN SF No. 338/ 3A admeasuring 0.37 Acres in Irrukanthurai Village, Valliyoor Panchayat Union, Radhapuram Taluka, Tirunelveli District. v IN SF No. 27/1, and 27/2 admeasuring 2.00 acres in Irrukanthurai Village, Valliyoor Panchayat Union, Radhapuram Taluka, Tirunelveli District. |
Form 8
|
This form is for |
Modification of charge |
|
Charge Identification (ID) number of the charge to be modified |
80005395 |
|
Corporation identity number (CIN) or foreign company registrations number of the company |
U17111TZ2004PLC011016 |
|
Name of the company |
BEST CORPORATION LIMITED |
|
Address |
Best Industrial Estate, 89/ 2, Padmavthipuram, Avinashi Road, Tirupur
– 641 603, Tamilnadu, India |
|
Type of Charges |
v Immovable property v Book debts v Movable property (not being pledge) v Others |
|
Particular of the charge holder |
Name : State Bank of Mysore Address: Tirupur Branch, 72, Appachi Nagar,. Main Road City : Coimbatore State : Tamilnadu ISO country code: IN Pin code: 641601 e-mail ID: ganravi@gmail.com |
|
Nature or description of the instrument creating or modifying the charge |
Agreement of Undertaking |
|
Date of the instrument creating charge |
31.03.2008 |
|
Whether charge created or modified outside India |
No |
|
Amount Secure by the charge |
Rs. 200.000 millions |
|
Brief particulars of the principal terms and conditions and extent and operation of the charge |
Rate of Interest As per letter of sanction and legal document executed with the bank earlier when the name of the company was RRD Tex Private Limited Terms of repayment As per letter of sanction and legal document executed with thebank earlier when the nam,e of the company was RRD Tex Private Limited Margin As Per letter of sanction and legal document executed with the bank earlier when the name of the company was RRD Tex Private Limited Extent and operation of the charge Second charge on the entire current assets (present and future) pf the company on pari passu basis with other lenders. All the fixed assets of the company purchased out of the term loan both movable and Immovable and wind mills present and future are hypothecated to bank. |
|
Short particulars of the Property charged |
On pari passu basis with other lenders EM over the land and building at SF No. 373/1A, RS No. 607/3 of suryanallur Village, Dharampur TK Erode DT Extent 13.08 AC, lease hold rights on 3.60 AC on lease from Netaji Park Site No 27 and 28 SF No. 582 at Ettiverampalayam Village Tirupur), land and building at SF No. 672B, 2F, 2G, 2C, 2E and 67/21 extent 2.00ac, SF No. 13 AC, 2 AC, SF No. 337/1A, 2A extent 1.63 and other details as per schedule to letter of undertaking attached. |
|
Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
|
Particulars of the present modification |
There is no change in the overall credit limits extended by the bank to the company. The medication necessitated for making note of approval of scheme of amalgamation by the honorable high court of madras vide their order dated 12.09.2007 under section 391 and 394 of the companies act, 1956 and changes of name to best corporation limited from RRD Tex Private Limited as per certificate of incorporation consequent to name change on 04.10.2007. Other terms and conditions remain same and unchanged. |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 45.77 |
|
UK Pound |
1 |
Rs. 80.67 |
|
Euro |
1 |
Rs. 64.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
|