MIRA
INFORM REPORT
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Report Date : |
20.08.2011 |
IDENTIFICATION DETAILS
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Name : |
SANTHOSH TEXTILE PROCESS |
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Registered Office : |
S. F. No.165, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Year of Establishment : |
During 1992 |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business : |
Textile Processing Like Dyeing etc. |
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No. of Employees
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100 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Closed Operation |
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Payment Behaviour : |
Unknown |
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Litigation : |
-- |
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Comments : |
As informed by management, the concern has closed its factory
operations since February,2011 The Madras High Court has ordered closure of more than 700 bleaching
units and effluent treatment plants in Tirupur in Tamilnadu. The reason for
such order is the water pollution which caused by the companies. Subject
concern is one of those companies and it has closed its operation Keeping in view the aforesaid it would be advisable to enter into
business dealings on a safe and secured 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 |
INFORMATION DECLINED BY
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Name : |
Mr. Rama |
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Designation : |
Operator |
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Date : |
11.08.2011 |
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Name : |
Mr.Parmeshwar |
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Designation : |
Manager |
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Contact No.: |
91-9500233360 |
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Date : |
12.08.2011 |
LOCATIONS
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Registered Office / Factory: |
S. F. No.165, |
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Tel. No.: |
91-421-2344550 / 2344530 / 2473602 |
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Fax No.: |
91-421-2344526 |
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91-9500233360 (Mr. Parmeshwar) |
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E-Mail : |
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Area : |
2000 Sq.ft. |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. C Udhayakumar |
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Designation : |
Partner |
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Date of Birth/Age : |
45 Years |
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Experience : |
18 Years |
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Name : |
Mr. C Shanmuga Sundaram |
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Designation : |
Partner |
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Date of Birth/Age : |
41 Years |
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Experience : |
16 Years |
BUSINESS DETAILS
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Line of Business : |
Textile Processing Like Dyeing etc. |
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Products : |
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Terms : |
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Selling : |
Credit (30 Days) |
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Purchasing : |
Credit (30 Days) |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
100 (Approximately) |
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mr. Ramachandran Chartered Accountant |
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Address : |
Tirupur |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Not Divulged |
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Borrowed : |
Not Divulged |
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Total : |
-- |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
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31.03.2010 |
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Sales Turnover (Average Monthly) |
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40.000 |
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Net Profit |
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Indicating about 10% on Sales |
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Inventories |
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About 0.500 |
Note : Sole Proprietory and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
LOCAL AGENCY FURTHER INFORMATION
Note:
Mr. Parmeshwar has informed that he has closed his company as applied
state government because of more polluted water in Tamil Nadu
NEWS:
THE Madras High Court has ordered closure of more than 700 bleaching and
dyeing units, and effluent treatment
plants in Tirupur in Tamil Nadu. On January 28, the court also asked the state
government to disconnect electricity supply to the units in the hosiery town
that failed to comply with its earlier order to achieve zero liquid discharge
of effluents.
“The court said the industrial units could reopen only if they achieved
zero liquid discharge,” said
The dyeing factory owners’ association asked the court to review its
order but the court refused. It suggested that the association file a review
petition. The industrial units argued that the common effluent treatment plant
required electricity and equipment would get damaged if it is shut down.
“We have closed all the units as per the court's orders and will work
towards getting the pollution control board’s consent,” said
The court was hearing two contempt petitions filed by the Noyyal River
Ayacutdars Protection Association last year against the Tamil Nadu Pollution
Control Board, public works department, Tirupur Dyeing Factory Owners
Association and the Tirupur Bleaching Units/Industries Owners Association. The
petitions stated that none of these bodies had complied with the court’s 2006
interim orders or with the pollution control laws.
In 2006, the court had ordered that the units pay a fine for polluting
the Noyyal till they achieved zero liquid discharge latest by July 31, 2007. It
had directed shutting down the units that failed to meet the deadline.
State pollution board lax
But the pollution control board did not close the defaulting units. The
only action it took was to inspect the units in May 2008 with the court’s
monitoring committee and issue show-cause notice. The committee report not only
noted an unauthorised increase in production but also found that it was a
regular feature—some units increased production machinery up to 10 times the
permitted limit. In 2008, the court told the board to remove unauthorised
excess machinery in the Tirupur units and submit a report by July 2008. The
board only filed an affidavit in 2010 admitting that industrial units
discharged more effluent than permitted.
The committee report also indicted the board’s field officers for not
carrying out inspections of the common effluent treatment plant. Their excuse
was that the matter was pending in the Supreme Court. The industrial units had
filed an appeal in the Supreme Court against the high court’s 2006 orders.
“The Supreme Court stayed the closure of the units, maintaining the
status quo in 2007. The units took advantage of this stay order to continue
polluting the river,” said A P Kandasamy, president of the Ayacutdars Association.
“The order to ensure zero discharge still applied but the units did not
comply.”
In October 2009, the Supreme Court gave final orders, setting a deadline
of January 5, 2010, for the units to achieve zero discharge and pay
compensation for damaging the area’s ecology till April 2010. The Supreme Court
also noted that the matter had been pending for two-and-a-half years while
units were allowed to function.
The petitioners asked the high court to take action against the
pollution control board’s officials. The court has only asked for a list of
officers in charge during the relevant time. It will hear the case in March
2011.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.61 |
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1 |
Rs.75.32 |
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Euro |
1 |
Rs.65.68 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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- |
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.