MIRA INFORM REPORT
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Report Date : |
20.08.2011 |
IDENTIFICATION DETAILS
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Name : |
THANGAMMAN PROCESS |
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Registered
Office : |
SF No.16, Vedugan Thottam Kasipalayam, Vijayapuram Post, Tirupur-641
606, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Year of
Establishment: |
1987 |
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Capital
Investment / Paid-up Capital : |
Not Divulged |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business
: |
Dyeing processing of Textiles/ Fabrics. |
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No. of Employees
: |
80 [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 is caused by the companies. Subject
concern is one of those companies and its has closed its operations. Keeping in view the aforesaid it would be advisable to enter into
business dealings on a safe and secured 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 |
INFORMATION PARTED BY [General Details]
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Name : |
Mr. Allwin |
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Designation : |
Supervisor |
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Contact No.: |
91-9894042110 |
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Date : |
08.08.2011 |
LOCATIONS
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Registered Office/Factory : |
SF No.16, Vedugan Thottam Kasipalayam, Vijayapuram Post, Tirupur-641
606, |
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Tel. No.: |
91-421-2375407/707 |
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Mobile No. : |
91-9894042110 [Mr. Allwin] |
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Fax No.: |
91-421-2375407 |
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E-Mail : |
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Area : |
1000 Sqft. |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. N. Natrayan |
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Designation : |
Partner |
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Name : |
Ms. N. Sakunthala |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Dyeing processing of Textiles/ Fabrics. |
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Terms : |
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Selling : |
Cash / Credit |
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Purchasing : |
Cash / Credit |
GENERAL INFORMATION
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No. of Employees : |
80 [Approximately] |
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Bankers : |
State Bank of |
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Facilities : |
Cash Credit - Rs.1.000 millions |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Mr. G V Venugopal Chartered Accountant |
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Address : |
Tirupur, |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.12.000 millions [Estimated] |
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Borrowed : |
-- |
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Total : |
Rs.12.000 millions [Estimated] |
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
Particulars |
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31.03.2010 |
31.03.2009 |
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Sales Turnover [Approximately] |
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120.000 |
100.000 |
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Net Profit |
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5% on Sales |
- |
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Inventories |
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10.000 |
- |
Note : Sole Proprietory and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry
LOCAL AGENCY FURTHER INFORMATION
PRESS RELEASE
Tirupur dyeing units told to close
Author(s): Sumana Narayanan
Issue: Feb 28, 2011
Madras High Court orders shut down till zero
discharge
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.61 |
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|
1 |
Rs.75.32 |
|
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 |
YES |
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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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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
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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 |
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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 |
|
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 |
|
- |
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.