MIRA
INFORM REPORT
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Report Date : |
10.08.2011 |
IDENTIFICATION DETAILS
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Name : |
NETWORK CLOTHING COMPANY PRIVATE LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
16.09.1999 |
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Com. Reg. No.: |
18-009010 |
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Capital
Investment/ Paid-up Capital: |
Rs. 72.600 Millions |
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CIN No.: [Company Identification
No.] |
U18101TZ1999PTC009010 |
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IEC No.: |
3293000452 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CMBN03282G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturers and
Exporters of Hosiery Garments and Fabrics |
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No. of
Employees: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-421-2262022 |
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Fax No.: |
91-421-2262044/2262040 |
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E-Mail : |
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Website : |
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Area : |
49075 Sq.ft. |
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Location : |
Owned |
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Factory 1 : |
2/225, |
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Factory 2 : |
NCC Vertex 2/642, |
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Tel. No.: |
421-2262022 |
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Area : |
74175 Sq.ft. |
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Location : |
Owned |
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Factory 3 : |
NCC Relay S.F. No.90,
2/642, |
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Area : |
55000 Sq.ft. |
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Location : |
Owned |
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Factory 4 : |
NCC Spectra Plot No. H.14, 4th
Cross, |
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Tel. No.: |
91-4294-234025-26 |
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Area : |
60000 Sq.ft. |
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Location : |
Owned |
DIRECTORS
As On 24.08.2009
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Name : |
Mr. Ravi
Murugasamy |
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Designation : |
Managing Director |
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Address : |
149, LRG Layout,
Tirupur – 641601, |
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Date of Birth/Age : |
19.06.1968 |
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Qualification : |
M.B.A, B.E |
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Date of Appointment : |
16.09.1999 |
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DIN No.: |
01957984 |
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Name : |
Mr. Ramiah
Nambirajan |
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Designation : |
Director |
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Address : |
7 South Garden,
Karuvampalyam, Tirupur - 641604, |
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Date of Birth/Age : |
30.05.1968 |
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Qualification : |
B.Com. |
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Date of Appointment : |
16.09.1999 |
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DIN No.: |
01957922 |
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Name : |
Mr. Subhash
Gounder Ramaswamy |
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Designation : |
Director |
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Address : |
1-D, Kumar Nagar
West, |
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Date of Birth/Age : |
06.12.1959 |
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Date of Appointment : |
16.09.1999 |
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DIN No.: |
01830731 |
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Name : |
Mr. Ramesh
Palanisamy |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
15.06.1972 |
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Date of Appointment : |
16.09.1999 |
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DIN No.: |
02274309 |
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Name : |
Mr. Suresh
Palanisamy |
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Designation : |
Director |
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Address : |
1-304,
Kullegoundan Palayam, Andi Palayam, Tirupur-641652, |
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Date of Birth/Age : |
35 years |
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Date of Appointment : |
16.09.1999 |
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DIN No.: |
02274329 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 24.08.2009
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Names of Shareholders |
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No. of Shares |
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M. Ravi |
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718000 |
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R. Vijaya |
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2000 |
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S. Ramaswamy |
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1500 |
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P. Ramesh |
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1500 |
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P. Suresh |
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1500 |
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R. Nambirajan |
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1500 |
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Total |
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726000 |
Equity Share
Breakup
As On 30.09.2010
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Exporters of Hosiery Garments and Fabrics |
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GENERAL INFORMATION
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Bankers : |
●
State
Bank of ●
State
Bank of ●
Corporation
Bank, Main Branch, 300/1, ●
The
South Indian Bank Limited, Tirupur, ●
ICICI
Bank ●
HDFC
Bank ●
SBI Bank |
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Facilities : |
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Banking Relations
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- |
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Auditors : |
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Name : |
N. Sivachalam Chartered
Accountants Qualification :
B.Sc., F.C.A. |
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Address : |
12-Govindarajulu Street Stanes road, |
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Tel. No.: |
91-421-2242644 |
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Associates : |
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CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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750000 |
Equity Shares |
Rs. 100/- each |
Rs. 75.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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726000 |
Equity Shares |
Rs. 100/- each |
Rs. 72.600 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
72.600 |
72.600 |
72.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
198.630 |
171.682 |
144.960 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
271.230 |
244.282 |
217.560 |
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LOAN FUNDS |
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1] Secured Loans |
797.887 |
830.962 |
635.524 |
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2] Unsecured Loans |
0.100 |
0.100 |
0.100 |
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TOTAL BORROWING |
797.987 |
831.062 |
635.624 |
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DEFERRED TAX LIABILITIES |
50.108 |
41.869 |
27.714 |
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Others (Advanced Received) |
4.997 |
0.698 |
4.834 |
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TOTAL |
1124.322 |
1117.911 |
885.732 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
325.289 |
360.590 |
296.545 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
25.401 |
27.472 |
27.272 |
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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 |
403.029
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367.567
|
314.920 |
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Sundry Debtors |
276.852
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224.310
|
238.379 |
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Cash & Bank Balances |
66.445
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91.765
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46.968 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
182.115
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205.476
|
134.348 |
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Total
Current Assets |
928.441
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889.118
|
734.615 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
142.978
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146.383
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159.678 |
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Other Current Liabilities |
0.000
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0.000
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0.000 |
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Provisions |
12.202
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13.275
|
13.431 |
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Total
Current Liabilities |
155.180
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159.658
|
173.109 |
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Net Current Assets |
773.261
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729.460
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561.506tttt |
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MISCELLANEOUS EXPENSES |
0.371 |
0.389 |
0.409 |
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TOTAL |
1124.322 |
1117.911 |
885.732 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
1385.165 |
1402.026 |
1298.742 |
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Other Income |
403.948 |
7.833 |
4.789 |
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TOTAL (A) |
1789.113 |
1409.859 |
1303.531 |
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Less |
EXPENSES |
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|
653.000 |
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Direct Expenses |
1603.723 |
1199.127 |
276.384 |
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Selling and Administrative Expenses |
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|
235.945 |
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Increase/Decrease in Stock |
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(7.398) |
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TOTAL (B) |
1603.723 |
1199.127 |
1157.931 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
185.390 |
210.732 |
145.600 |
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Less |
FINANCIAL
EXPENSES (D) |
86.875 |
106.693 |
56.818 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
98.515 |
104.039 |
88.782 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
55.390 |
62.562 |
50.515 |
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PROFIT BEFORE
TAX (E-F) (G) |
43.125 |
41.477 |
38.267 |
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Less |
TAX (I) |
16.177 |
14.756 |
13.880 |
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PROFIT AFTER TAX
(G-I) (J) |
26.948 |
26.721 |
24.387 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
171.682 |
144.913 |
120.526 |
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BALANCE CARRIED
TO THE B/S |
198.630 |
171.682 |
120.526 |
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Earnings Per
Share (Rs.) |
37.12 |
36.81 |
NA |
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KEY RATIOS
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PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
1.51
|
1.90
|
1.87 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.11
|
2.96
|
2.95 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.44
|
3.32
|
3.71 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.17
|
0.18 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.51
|
4.06
|
3.72 |
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Current Ratio (Current Asset/Current Liability) |
|
5.98
|
5.57
|
4.24 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
NETWORK CLOTHING COMPANY PRIVATE LIMITED |
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Presented
By |
CORPORATION
BANK, |
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1) Date and description of instrument creating the change |
Term Loan Agreement dated 09.05.2003 for Rs.0.757 millions Term Loan Agreement dated 09.05.2003 for Rs.15.444 millions Term Loan Agreement dated 09.05.2003 for Rs.4.966 millions Term Loan Agreement dated 09.05.2003 for Rs.0.675 millions Term Loan Agreement dated 09.05.2003 for Rs.7.363 millions Term Loan Agreement dated 09.05.2003 for Rs.1.320 millions Export Credit Agreement dated 09.05.2003 for Rs.70.000 millions Export Credit Agreement dated 09.05.2003 for Rs.100.000 millions Agreement for Inland/Foreign Bills dated for Rs.100.000 millions Common Deed of Hypothecation of Movables/ Assets/ Debts dated 09.05.2003 for overall limits. |
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2) Amount secured by the charge/amount owing on the securities of charge |
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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 |
Hypothecation of entire Plant and Machinery and all movable assets of the company. Hypothecation of stock consisting of Raw Materials, Stock in Process, Finished Goods, Stores and Spares, Consumables. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Purpose : Term Loan : Take over of Liabilities from the South Indian Bank Limited PCL : Pre shipment Export Credit FDBN/D/P : Post shipment Export Finance B.G. : To issue guarantees in favour of AEPC for procuring Export Quota. Rate of Interest : For Term Loan : @ CBMTLR i.e. 12.25% p.a. raising or falling For PCL/ FDBN/ D/P @ 7.5% p.a. Margin : PCL, BG – 25% Repayment :
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5) Name and Address and description of the person entitled to the charge. |
Corporation Bank, Mangalam road, Tirupur |
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6) Date and brief description of instrument modifying the charge |
Inter-se pari parsu agreement between the participating
banks in the multiple banking arrangement dated 25.04.2005 (inter-se pari
parsu agreement between corporation bank and state bank of |
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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. |
The charge on the assets of the capacity has been modified as follows: The charge on assets of the company with corporation bank
for Rs. 410.165 millions has been created and also another charge on the
assets of the company with state bank of |
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Corporate
identity number of the company |
U18101TZ1999PTC009010 |
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Name of the company
|
NETWORK CLOTHING
COMPANY PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
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This form is for |
Modification of
charge |
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Type of charge |
Book debts Movable property (not being pledge) Hypothecation of Movable Fixed & Current Assets |
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Particular of
charge holder |
Corporation Bank
- Main Branch, 300/1, e-mail id: cb087@corpbank.co.in |
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Nature of
instrument creating charge |
Common Deed of
Hypothecation of Movables/Debts/Assets |
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Date of
instrument Creating the charge |
22.01.2010 |
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Amount secured by
the charge |
Rs. 772.200
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
a) Rate of
Interest - Cash Credit , Corporate Loan , Demand Loan Secured, Term Loans: 11%
p.a. (COBAR minus 1%) subject to revision from time to time. FDBN/FDBP/FDBD/PSCFC/DIRECT
PARCEL BILL, PCL : 9.25% pa b) Terms of
repayment - Cash Credit: Running Account repayable on demand subject to
Annual Renewal Corporate
Loan& TLS (Existing): Existing terms continue TLS (NEW) : 6
months RPI, 60 Monthly Instalments of Rs.167000/- each. Interest to be paid
as and when debited PCL: Each PCL
opened will have to be liquidated within a period not exceeding 180 days by
by way of Negotiation. Purchase/Discount of Export Bills. FBN/P/D/Direct
Parcel Bill-Sight Bills to be paid within the normal transit period. c) Margin - CC -
25% Stock and Book Debts PCL - 25% of FOB
Value Term Loan (New):
25% INLC/ImLC - 10% BG - 25% d) Extent and
operation of charge – 1. For CC -
Hypothecation of Inventory for domestic Sales and Domestic Receivables 2. for Corporate
Loan - Continuing I charge on entire Fixed Assets(except on the assets
exclusively charged to SBI) 3. For DLS - Hyp
of specific duty draw Back Receivables. 4. PCL -
Pari-passu I charge on Inventory cum Book Debts/Current Assets 5. Term Loan
(New): Purchase/Import of Machinery & Construction of Factory e) Others – 1. Personal
Guarantee of M. Ravi 2. Continued
Charge on 9 properties with Pari-Passu with State Bank of |
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Particulars of
the property charged |
For CC -
Hypothecation of Inventory for domestic Sales and Domestic Receivables For Corporate
Loan - Continuing I charge on entire Fixed Assets(except on the assets
exclusively charged to SBI) For DLS - Hyp of
specific duty draw Back Receivabes. PCL - Pari-passu
I charge on Inventory cum Book Debts/Current Assets Term Loan (New):
Purchase/Import of Machinery & Construction of Factory Hypothecation
/Mortgage of Entire movable Fixed Assets & Current Assets with Pari-Passu
with State Bank of India, Commercial Branch, Coimbatore. |
|
Date of
instrument modifying the charge |
17.09.2008 |
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Particulars of
the present modification |
The Existing Charge
of Rs.667.200 millions stands enhanced to Rs.772.200 millions on
Hypothecation of entire Movable Fixed and Current Assets of the Company on
Pari-Passu with State Bank of |
Fixed Assets
●
Land
●
Building
●
Plant and Machinery
●
Electrical and fittings
●
Furniture and Fittings
●
Computer and Software
●
Office equipments
●
Vehicles
Website Details :
They are one of the
leading manufacturers of knitted garments in Tirupur, the
Every member of the NCC family has a defined and inevitable role in the process and progress. The company holds fast to its Human Resource policies by ensuring decent working hours, work environment, adequate training programmes to motivate and develop their capabilities. Performance monitoring and appraisal is a vital function in subject's HR Policy.
The company has been conferred with the SA 8000 and ETI-GSP certifications for its social accountability – benchmarking the working hours, social security benefits and following Health and Safety measures. Above all, this factor is evident from the smiles that have grown with the company, over the years.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.45.17 |
|
|
1 |
Rs.73.72 |
|
Euro |
1 |
Rs.64.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.