MIRA
INFORM REPORT
|
Report Date : |
13.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THREADS INDIA LIMITED |
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Registered Office : |
D-3/ A, Panki Industrial Estate, Kanpur – 208 022, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.05.1983 |
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Com. Reg. No.: |
006119 |
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CIN No.: [Company
Identification No.] |
U17116UP1983PTC006119 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPT00069G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers
of Synthetic Sewing Threads |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 828000 |
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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 part of Lohia Group having fine track. Trade relations
are fair. Business is active. General financial position is good. Payments
are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Arun Kapoor |
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Designation : |
Senior Manager in Accounts |
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Date : |
10.09.2008 |
LOCATIONS
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Registered Office : |
D-3/ A, Panki Industrial Estate, Kanpur – 208 022, Uttar Pradesh,
India. |
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Tel. No.: |
91-5112-282001-9 |
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Fax No.: |
91-5112-282012 |
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E-Mail : |
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Website : |
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Area : |
1000 sq ft |
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Location : |
Owned |
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Head Office/ Factory : |
Lohia Industrial Complex, Chaubepur, Kanpur – 209 203, Uttar Pradesh,
India. |
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Tel. No.: |
91-512-3045100 |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Gopal Chandra Lohia |
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Designation : |
Managing Director |
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Address : |
7/153 – B, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India. |
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Date of Birth/Age : |
05.07.1937 |
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Date of Appointment : |
16.05.1986 |
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Name : |
Mr. Jitendra Kumar Lohia |
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Designation : |
Director |
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Address : |
Saket, 3 A/ 88, Azad Nagar, Kanpur – 208 002, Uttar Pradesh, India. |
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Date of Birth/Age : |
16.03.1935 |
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Date of Appointment : |
17.09.1996 |
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Name : |
Mr. Ajay Kumar Lohia |
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Designation : |
Whole Time Director |
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Address : |
7/153 – B, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India. |
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Date of Birth/Age : |
03.04.1965 |
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Date of Appointment : |
27.07.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
|
Mr. Jitendra Kumar Lohia |
20 |
|
Prashant Commercial Holdings Limited |
1999980 |
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Total |
2000000 |
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Equity Share
Break-up (as on 02.08.2007) |
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Percentage of
Holding |
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Bodies corporate |
|
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Synthetic Sewing Threads |
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Products : |
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Exports : |
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Countries : |
France, Iran, Bangladesh, Portugal |
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Imports : |
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Countries : |
Indonesia, Singapore, China |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
GENERAL
INFORMATION
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Customers : |
Wholesalers, Retailers and End
Users |
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No. of Employees : |
500 (In factory) |
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Bankers : |
State Bank of India, Overseas Branch, 15/54 B, Virendra Smriti Complex, Civil Lines, Kanpur – 208 001, Uttar Pradesh, India. |
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Facilities : |
CC – Rs.175.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anil Pariek and Garg Chartered Accountants |
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Address : |
33, Anand Bazar, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh,
India. |
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Holding Company : |
Prashant Commercial Holdings Limited CIN No.: L67120UP1983PLC006093 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs.10/- Each |
Rs.20.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs.10/- Each |
Rs.20.000 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
20.000 |
20.000 |
20.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
145.580 |
108.536 |
85.277 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
165.580 |
128.536 |
105.277 |
|
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LOAN FUNDS |
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1] Secured Loans |
190.202 |
176.081 |
151.974 |
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2] Unsecured Loans |
15.900 |
61.190 |
32.475 |
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TOTAL BORROWING |
206.102 |
237.271 |
184.449 |
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DEFERRED TAX LIABILITIES |
16.980 |
14.765 |
13.352 |
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TOTAL |
388.662 |
380.572 |
303.078 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
170.407 |
161.156 |
140.586 |
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Capital work-in-progress |
4.150 |
10.347 |
6.051 |
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INVESTMENT |
0.019 |
0.019 |
0.019 |
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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 |
113.684
|
113.403 |
90.861 |
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Sundry Debtors |
96.338
|
90.036 |
71.968 |
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Cash & Bank Balances |
2.817
|
3.661 |
2.999 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
25.922
|
24.711 |
18.812 |
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Total
Current Assets |
238.761
|
231.811 |
184.640 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
20.962
|
18.987 |
25.354 |
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Provisions |
3.713
|
3.774 |
2.864 |
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Total
Current Liabilities |
24.675
|
22.761 |
28.218 |
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Net Current Assets |
214.086
|
209.050 |
156.422 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
388.662 |
380.572 |
303.078 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
446.568 |
385.732 |
308.111 |
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Other Income |
0.000 |
2.359 |
1.731 |
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Total Income |
446.568 |
388.091 |
309.842 |
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Profit/(Loss) Before Tax |
58.733 |
36.202 |
26.241 |
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Provision for Taxation |
21.577 |
12.830 |
9.207 |
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Profit/(Loss) After Tax |
37.156 |
23.372 |
17.034 |
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Export Value |
NA |
36.252 |
25.677 |
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Imports : |
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Raw Materials |
NA |
53.046 |
35.652 |
|
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Stores & Spares |
NA |
1.218 |
0.796 |
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Capital Goods |
NA |
3.254 |
35.186 |
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Total Imports |
NA |
57.518 |
71.634 |
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Expenditures : |
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Increase/(Decrease) in Finished Goods |
0.000 |
10.394 |
9.668 |
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Financial Charges |
17.298 |
17.982 |
9.608 |
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Depreciation & Amortization |
15.461 |
13.741 |
9.954 |
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Other Expenditure |
355.076 |
309.772 |
254.371 |
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Total Expenditure |
387.835 |
351.889 |
283.601 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
8.32
|
6.02 |
5.50 |
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Net Profit Margin (PBT/Sales) |
(%) |
13.15
|
9.39 |
8.52 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
14.21
|
8.98 |
7.92 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.28 |
0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.39
|
2.02 |
2.02 |
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Current Ratio (Current Asset/Current Liability) |
|
9.68
|
10.18 |
6.54 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8
|
Name of the company |
THREADS INDIA LIMITED |
|
Presented By |
Mr. Gopal Chandra
Lohia, Managing Director |
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1) Date and description of instrument creating the change |
Form C-2:
Agreement of Hypothecation of goods and assets dated 12.01.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
US$ 413000
(equivalent Rs.19.000 Millions) comprising of: a) Term Loan US$
163000 (equivalent Rs.7.500 Millions) b) Corporate Loan
US$ 250000 (equivalent Rs.11.500 Millions) |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge on
all present and future Fixed Assets of the Company pari-passu with IDBI and
second charge on all current assets of the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at
applicable rate as combined in letter of State Bank of India in Form C 5
(FCNRBTL) dated 12.01.2004 in respect of Term loan and Corporate loan of
Rs.7.500 Millions in respect of Rs.11.500 Millions respectively with other
terms and conditions as contained in the said letter. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
India Co-operative
industrial Estate, Kanpur. |
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6) Date and brief description of instrument modifying the charge |
6th
July, 2005, Mortgage by deposit of title deeds was created by the Company for
which no instrument was executed, in favour of State Bank of India in respect
of the immovable properties of the Company bearing. Plot No. 484 –
Amiliha, Kanpur Plot No. 485 A
and 485 B, Amiliha, Kanpur Plot No. 474
Amiliha, Kanpur Plot No. 492,
Amiliha, Kanpur Plot No. 417 and
444 Malwan, Kanpur as security for
the repayment and discharge by the Company of US$ 413000 (equitable Rs.19.000
Millions) comprising of: a) Term Loan US$
163000 (equivalent Rs.7.500 Millions) b) Corporate Loan
US$ 250000 (equivalent Rs.11.500 Millions) together with
interest, additional interest, liquidated damages, premium on prepayment,
costs, charges, expenses and all other monies payable by the Company to the
State Bank of India. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
US$ 413000
(equitable Rs.19.000 Millions) comprising of: a) Term Loan US$
163000 (equivalent Rs.7.500 Millions) b) Corporate Loan
US$ 250000 (equivalent Rs.11.500 Millions) payable by the
Company to the State Bank of India in terms of the said Loan Agreement which
is secured by the said Form C-2: Agreement of Hypothecation of goods and
assets dated 12.01.2004 being the original charge, is now also secured by the
1st charge on immovable properties of the Company by said mortgage
by deposit of the title deeds created by the Company on 6th July,
2005 in favour of State Bank of India as above. |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified
|
90271929 |
|
Corporate identity
number of the company |
U17116UP1983PTC006119 |
|
Name of the
company |
THREADS INDIA LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
D-3/ A, Panki Industrial Estate, Kanpur – 208 022, Uttar Pradesh,
India. |
|
Type of charge |
Immovable
Property Book Debts Movable Property |
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Particular of
charge holder |
State Bank of India, Overseas Branch, 15/54 B, Virendra Smriti Complex, Civil Lines, Kanpur – 208 001, Uttar Pradesh, India. E-Mail: sbiobkan@sancharnet.in |
|
Nature of
description of the instrument creating or modifying the charge |
Joint Deed of
Hypothecation |
|
Date of instrument
Creating the charge |
26.10.2007 |
|
Amount secured by
the charge |
Rs.215.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
Cash Credit @ 1.5% below SBAR, Presently applicable rate @ 11.25% per annum. Terms of
Repayment: Payable on demand Margin: As per
arrangement letter of State Bank of India dated 28.02.2007, as amended from
time to time. Extent and
Operation of the charge: Pari-passu first charge on entire Current Assets of
the Company including Raw materials components, Stock-in-process, Finished
goods, Stores and Spares, Receivable and all other Current Assets present and
future. Pari-passu second
charge on all Fixed assets of the Company. Others: Name of
Consortium Member Banks having pari-passu charge: -
State Bank
of India, Overseas Branch, Civil Lines, Kanpur -
HDFC Bank
Limited, Naveen Market Branch, Kanpur -
IDBI Bank
Limited, Civil Lines, Kanpur |
|
Short particulars
of the property charged |
Plot No.: 484,
485A, 485B, Part of Plot No. 474 and 492, Plot No. 417, 444, 505 and 493 all
situated at Village –Amiliha, Tehsil Bilhaur, Kanpur and plot No. 1-B/ 9 and
10 at Hassan, Bangalore and Plot No. S – 9 at Doddaballapur, Bangalore. |
|
Date of latest
modification prior to the present modification |
02.03.2007 |
|
Particulars of
the present modification |
Reconstitution of
consortium of Banks: IDBI Bank Limited has been inducted in the consortium in
place of Canara Bank, necessitating execution of fresh deed of Hypothecation
dated 26th October, 2007 to create security in favour of
reconstituted consortium for working capital limits. |
Trade References:
- Ayannar
Spinning – South India
- Mahakali Enterprise
- Mumbai
WEBSITE DETAILS:
Subject is a part of Lohia Group of companies. Lohia Group is a well established industrial and manufacturing corporate group, known all over the world. Other companies of the group are:
Threads (India) Limited is one of the leading manufacturers of Synthetic Sewing Threads in India.
Technology
Sewing Thread Technology was originally sourced from Cousin Freres S.A., France.
Modern Technology
Subject has one of the most modern synthetic sewing thread plant in India situated at Chaubepur near Kanpur, India.
Quality
Certifications - ISO, Satra, DNV, Oeko-Tex
DNV/IATF Accredtion
SATRA Membership
Satra Approved Products
Satra Approved Laboratory
Oeko-Tex Certified
Subject manufactures a wide range of products for the industrial, household and other sewing needs. The threads are also available in various treatments.
Subject's sewing threads are used in Leather products, Jeans, Textile Garments, Zips, Sports goods, Saddlery, Piece and joining, Parachutes, Automobile Seats, Stator binding, Bag closing etc.
Product
Identification Matrix
For the convenience, they are providing herewith a detailed matrix of products and treatments. For available combinations, there is a link to the page containing detailed technical and packing information.
Subject has a vast spectrum of threads, each having specific set of properties, suitable for specific application needs. It is therefore possible to deploy subject's threads for any of the large number of applications requiring different sewing needs.
Some of the applications where subject's sewing threads find their application are:
- Leather Products
- Jeans and Garments
- Zips
- Sports Goods
- Saddlery and Harness
- Mattresses, Upholstery
- Tarpaulin, Tents
- Textiles
The above list mentions just a few applications. There are many more applications and subject has a suitable sewing thread for it.
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 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
61 |
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 |
|