MIRA
INFORM REPORT
|
Report Date : |
24.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SHUBHALAKSHMI POLYESTERS LIMITED |
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Registered Office : |
418, Jeevandeep Complex, Opposite J. K. Tower, Ring Road, Surat-385002,
Gujarat |
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Country : |
India |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.09.2005 |
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Com. Reg. No.: |
46755 |
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CIN No.: [Company
Identification No.] |
U17110GJ2005PLC046755 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTS05980C SRTS03261G |
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PAN No.: [Permanent
Account No.] |
AAJCS2757C |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Polyester yarn and texturised yarn 80
and150 denier nylon/crimp yarns. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 1300000 |
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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 meeting its normal
commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. J. P. Birjukka |
|
Date : |
23.09.2008 |
LOCATIONS
|
Registered Office : |
418, Jeevandeep Complex, Opposite J. K. Tower, Ring Road,
Surat-385002, Gujarat, India |
|
Tel. No.: |
91-261-2354401/ 02 / 03 |
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Mobile No.: |
91-9825800395 |
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Fax No.: |
91-261-2354401 |
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E-Mail : |
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Corporate Office: |
401, A-Wing, Oberoi Chambers, Near Kuber, Andheri Link Road, Andheri
(West), Mumabi-400053, Maharashtra, India |
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Tel. No.: |
91-22-26744375/ 6 |
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Fax No.: |
91-22-26744377 |
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E-Mail : |
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Factory 1: |
Survey No.179/1 / 4, Village: Silli, Silvassa-396230 D and N H |
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Tel. No.: |
91-260-3253441 / 42 |
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Mobile No.: |
91-9825800850 |
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Fax No.: |
91-260-2632939 |
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E-Mail : |
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Factory 2: |
376/2, 16-17-22, Opp. Rishi Packer, Kachigam, UT of Daman |
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Tel No.: |
91-260 - 2240117 / 2241535 |
DIRECTORS
|
Name : |
Mr. Ajay Agarwal |
|
Designation : |
Managing Director |
|
Address : |
A-302, Nanadigram Apartments, Ghod Dod Road, Opposite Parle Point,
Surat-395001, Gujarat, India |
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Date of Birth/Age : |
23.02.1963 |
|
Date of Appointment : |
13.09.2005 |
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Name : |
Mr. Ramu Raman Late Babulal Agarwal |
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Designation : |
Director |
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Address : |
51-A, Royal Accord IV Apnaghar Layout, Lokhandwala, Andheri (West),
Mumbai-400053, Maharashtra, India |
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Date of Birth/Age : |
22.11.1949 |
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Date of Appointment : |
13.09.2005 |
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|
Name : |
Mr. Bankesh Chandra Late Babulal Agarwal |
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Designation : |
Director |
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Address : |
41-Royal Accord, 4th Floor, Opposite Lokhandwala Complex,
Andheri (West)m Mumabi-400090, Maharashtra, India |
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Date of Birth/Age : |
29.10.1951 |
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Date of Appointment : |
13.09.2005 |
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Name : |
Mr. Manoj Agarwal |
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Designation : |
Director |
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Address : |
41-Royal Accord, 4th Floor, Opposite Lokhandwala Complex,
Andheri (West)m Mumabi-400090, Maharashtra, India |
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Date of Birth/Age : |
16.08.1977 |
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Date of Appointment : |
13.09.2005 |
|
|
|
|
Name : |
Mr. Vikas Agarwal |
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Designation : |
Director |
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Address : |
51-A, Royal Accord IV Apnaghar Layout, Lokhandwala, Andheri (West),
Mumbai-400053, Maharashtra, India |
|
Date of Birth/Age : |
30.08.1981 |
|
Date of Appointment : |
13.09.2005 |
|
|
|
|
Name : |
Mr. Krishnamoorthy Melur Veera Kannan |
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Designation : |
Director |
|
Address : |
Mahesh Building, 576 B, Jame
Jamshed Road, Matunga, Mumabi-400019, Maharashtra, India |
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Date of Birth/Age : |
17.11.1939 |
|
Date of Appointment : |
15.01.2008 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 07.09.2007)
|
List of Allottees |
|
No. of Shares Allotted |
|
Ajay Kumar Agarwal |
|
293020 |
|
Ajay Kumar Agarwal (HUF) |
|
55593 |
|
B.L.S and Company |
|
50000 |
|
Babulal Agarwal (HUF) |
|
54028 |
|
Bankesh Chandra Agarwal |
|
68334 |
|
Bankesh Chandra Agarwal |
|
173279 |
|
Chanda Chaudhary |
|
12500 |
|
Gayatri Devi Agarwal |
|
60893 |
|
Govind Prasad Khemla |
|
9500 |
|
Gaurishankar Agarwal |
|
9500 |
|
Kailash Ficom Limited |
|
190000 |
|
|
|
|
|
Total |
|
976647 |
(As on 30.09.2007)
|
Category |
|
Percentage |
|
Bodies Corporate (not mentioned above) |
|
67.10 |
|
Directors or relatives of directors |
|
30.20 |
|
Other top fifty (50) shareholders (other than listed above) |
|
2.70 |
|
|
|
|
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Polyester yarn and texturised yarn 80
and150 denier nylon/crimp yarns. |
GENERAL
INFORMATION
|
Bankers : |
BOB- SBI- State Bank of India, Industrial Finance Branch, Marble Arch, Race Course Circle, Vadodara-390007, Gujarat, India
Parsi, Sheri Branch, Surat-395003, Gujarat, India
Special Commercial Branch, Surat-395003, Gujarat, India |
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|
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Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Pradeep K. Singhi and Associates Chartered Accountant |
|
Address : |
A/501, President Plaza, Near R.T.O, Ring Road, Nanpura, Surat-395001,
Gujarat, India |
CAPITAL STRUCTURE
(As on 29.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12486166 |
Equity Shares |
Rs.10- each |
Rs.124.862
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
124.861 |
100.00 |
|
|
2] Share Application Money |
|
37.450 |
0.000 |
|
|
3] Reserves & Surplus |
|
102.960 |
8.605 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
265.271 |
108.605 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
338.723 |
282.907 |
|
|
2] Unsecured Loans |
|
30.624 |
37.630 |
|
|
TOTAL BORROWING |
|
369.347 |
320.537 |
|
|
DEFERRED TAX LIABILITIES |
|
25.428 |
10.795 |
|
|
|
|
|
|
|
|
TOTAL |
|
660.046 |
439.937 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
428.830 |
332.013 |
|
|
Capital work-in-progress |
|
47.349 |
1.601 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
2.979 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
79.879 |
28.661 |
|
|
Sundry Debtors |
|
135.091 |
62.198 |
|
|
Cash & Bank Balances |
|
7.030 |
4.523 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
146.151 |
56.718 |
|
Total
Current Assets |
|
368.151 |
152.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
183.516 |
46.301 |
|
|
Provisions |
|
4.356 |
0.160 |
|
Total
Current Liabilities |
|
187.872 |
46.461 |
|
|
Net Current Assets |
|
180.279 |
105.638 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.609 |
0.686 |
|
|
|
|
|
|
|
|
TOTAL |
|
660.046 |
439.937 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
|
1499.918 |
907.626 |
|
|
Other Income |
|
6.770 |
7.100 |
|
|
Total Income |
|
1506.688 |
914.726 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
45.720 |
32.937 |
|
|
Provision for Taxation |
|
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
45.720 |
32.937 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
|
995.550 |
596.695 |
|
|
Purchases made for re-sale |
|
141.424 |
60.727 |
|
|
Salaries, Wages, Bonus, etc. |
|
22.351 |
10.523 |
|
|
Interest |
|
37.475 |
27.286 |
|
|
Depreciation & Amortization |
|
26.827 |
17.367 |
|
|
Other Expenditure |
|
237.340 |
169.191 |
|
Total Expenditure |
|
1460.967 |
881.789 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
3.03 |
3.60 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
3.05 |
3.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
5.74 |
6.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.17 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
2.10 |
3.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.96 |
3.27 |
LOCAL AGENCY
FURTHER INFORMATION
Form: 8
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified
|
10009861 |
|
Corporate identity
number of the company |
U17110GJ2005PLC046755 |
|
Name of the
company |
SHUBHALAXI POLYESTERS LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
418, Jeevandeep Complex, Opposite J. K. Tower, Ring Road,
Surat-385002, Gujarat, India |
|
Type of charge |
Book Debts Movable Property Others |
|
Particular of
charge holder |
State Bank of
India, Industrial Finance Branch, Marble Arch, Race Course Circle,
Vadodara-390007, Gujarat, India |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
Agreement of Hypothecation of Goods and Assets for increase in the overall
limit. |
|
Date of
instrument Creating the charge |
26.09.2007 |
|
Amount secured by
the charge |
Rs.349.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest CC- 1% Above
SBAR, Present Effective Rate of 13.75 p.a. with monthly rest, TL- IV 0.50%
above SBAR, Present Effective rate of 13.25% p.a. with monthly rests. Terms of
Repayment W C-On Demand,
TL-I-24 Quarterly Installments, TL – II 26 Quarterly installments, TL – III
24 Quarterly installments and TL – IV (New) 24 Quarterly installments. Margin TL-25%, RM, SIP
and FG-25%, Receivables – 40%, L/C-10%, ?BG-10, One Time Preject L/C-10% Extent and
Operation of the charge The Credit
facilities are secured by way of (1) W C – Hypothecation of entire current
assets such as RM, WIP, FG, Receivables etc lying at Plot No. 179/ 1 / 2,
Village : Silli, Silvassa, D and N H (UT) (2) TL-(Existing) hypothecation of
entire movables / Fixed assets at 369/1, Rakholi, Dadra Nagar Haveli (UT) and
at Plot No. 179/1/2, Vil :SILLI, Silvassa, D and N H (UT) on Passi Passu
Basis with constotium member bank (3) TL- (New) Exclusive charge over fixed
Assets to be Aquired out of the proposed term loan. |
|
Short particulars
of the property charged |
The Credit
facilities are secured by way of (1) W C – Hypothecation of entire current assets
such as RM, WIP, FG, Receivables etc lying at Plot No. 179/ 1 / 2, Village :
Silli, Silvassa, D and N H (UT) (2) TL-(Existing) hypothecation of entire
movables / Fixed assets at 369/1, Rakholi, Dadra Nagar Haveli (UT) and at
Plot No. 179/1/2, Vil :SILLI, Silvassa, D and N H (UT) on Passi Passu Basis
with constotium member bank (3) TL- (New) Exclusive charge over fixed Assets
to be Aquired out of the proposed term loan. |
|
Particulars of
the present modification |
By this Execution
of the Charge Extended to Cover Revised facilities from 55.000 Millions t
Rs.349.000 Millions (CC-Rs.84.000 Millions + TL Rs.55.000 Millions +TL- II
Rs.120.000 Millions – Rs.81.000 Millions BG- Rs.9.000 Millions) |
Website Details:
Profile:
Shubhalakshmi
Group is a industrial group with its operations primarily based in Daman &
Silvassa in the Union Territories of Daman, Dadra Nagar & Haveli. The core
competence of the group is Polyester Yarn, with a strong emphasis on expansion
of the existing capacities and focus on backward and forward integration and
thereby make a mark in the Indian Polyester Industry with its total commitment
to achieve customer satisfaction through maintenance of high quality standards
and backed by unmoving faith of their vendors / suppliers.
Over a
period of time by virtue of hard work and passion to deliver the thing, a small
seed sown in 1987, has grown in to a huge tree, with sharp focus on quality,
cost and delivery. The group boasts of an annual production capacity of 12000 Metric
tons of high quality Polyester Filament Yarns (POY). In addition to standard
yarns, the group manufactures a wide variety of differentiated and customized
products. Among them are high tenacity, differential shrinkage, micro-filament,
cationic, stretch, and specially tailored products
The
group has achieved and maintained industrial excellence and laid a strong
foundation for dynamic group activities. It has emerged as a lean, agile and
supremely fit corporation in the facade of economic liberalization and
globalization. It is committed to make its due presence felt in the domestic as
well as international market.
The
Shubhalakshmi Group is promoted by Shri Ramuraman Agarwal (Chairman), Shri
Bankeshchandra Agarwal, Shri Ajay Kumar Agarwal (Managing Director), Shri Manoj
Agarwal and Shri Vikas Agarwal.
BUSINESS
STRATEGY:
Business
strategy successfully applied by the group for synergetic growth in the core
areas are as follows:
Ø
Backward
and forward integration in related areas
Ø
State
of the art technology with global standards
Ø
Project
implementation with no cost or time overrun
Ø
Technology
absorption
Ø
Strict
adherence to quality and delivery schedules
Ø
Workmen
training and motivation
Ø
Manufacture
of import substitute products with international quality
The
corporate identity reflects their outlook: ever flowing, flexible, innovative,
energetic and constantly changing shape to reflect changing market scenarios
and needs.
INDUSTRY
SCENARIO:
With the
phasing of the quotas, the demand for Indian textiles is on the rise. The
latent demand for POY has been increasing. The huge gap between the demand and
supply in the chips industry is to the tune of 371,000 TPA. With cotton prices
firming up, stable prices of PTA and MEG are expected.
POY will
play an important role in India's quest to achieve the status of being one of
the exporters of textiles and clothing. The POY industry in India is expected
to grow by 8-10%. Besides, India's per capita consumption of POY is as low as
1.6 per kg as compared to China's 5 per kg, Pakistan's 3 per KG and USA at 6
per KG. The cotton prices are expected to firm up, going forward, which would
be a positive sign. Previously there was huge difference in the prices of cotton
and polyester yarn due to the arbitrary tax structure. But with the reduction
in excise duty on polyester from 16% to 8%, which is expected to reduce
further, it will improve the competitiveness of POY vis-à-vis cotton yarn. This
compounded with the increase in standard of living in India will drive the
demand growth for POY.
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 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.45.72 |
|
UK Pound |
1 |
Rs.84.81 |
|
Euro |
1 |
Rs.67.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--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 |
|