MIRA
INFORM REPORT
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Report Date : |
20.08.2011 |
IDENTIFICATION DETAILS
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Name : |
VICTOR PROCESSING MILLS |
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Registered
Office : |
SF No. 588, Nadu Thottam Bharathi Nagar, Veerapandi Post, Tirupur –
641 605, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Year of
Establishment : |
2005 |
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Capital
Investment / Paid-up Capital : |
Rs.5.000 Millions (As on
31.03.2010) |
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Legal Form : |
Partnership concern with an unlimited liability of the partners |
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Line of Business
: |
Textile Dyeing Processing mostly on Job Works Basis. |
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No. of Employees
: |
25 (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 Operations |
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Payment Behaviour : |
Unknown |
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Litigation : |
-- |
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Comments : |
This time we were unable to contact the subject concern. We could
gather following information from indirect sources. “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. We presume that the subject concern is one of those companies and it
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/ DECLINED BY
Unable to contact
LOCATIONS
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Registered Office/ Factory: |
SF No. 588, Nadu Thottam Bharathi Nagar, Veerapandi Post, Tirupur –
641 605, |
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Tel. No.: |
91-421-6538771/ 2211751 |
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Fax No.: |
91-421-2211751 |
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E-Mail : |
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Area : |
1 Acre |
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Location : |
Rented |
PARTNERS
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Name : |
Mr. P. Sampath |
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Designation : |
Managing Partner |
Other names of partners are not divulged.
BUSINESS DETAILS
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Line of Business : |
Textile Dyeing Processing mostly on Job Works Basis. |
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Terms : |
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Selling : |
30 Days Credit (Local) |
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Purchasing : |
15 Days Credit (Local) |
GENERAL INFORMATION
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Suppliers : |
Yoshiaki Chemical Company India Private Limited, Peramanallur/
Tamilnadu |
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Customers : |
v
Jayanthi Garments, Tirupur v
Arvind Processors, Tirupur |
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No. of Employees : |
25 (Approximately) |
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Bankers : |
v
Indusind Bank, Tirupur v
Bank of |
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Facilities : |
Operation on Own Funds Only |
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Banking
Relations : |
-- |
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Auditors : |
Not Available |
CAPITAL STRUCTURE
As on 31.03.2010
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Capital Investment : |
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Owned : |
Rs.5.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs.5.000 Millions |
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 (Approximately) |
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20.000 |
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Note : Sole Proprietory and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
LOCAL AGENCY FURTHER INFORMATION
NEWS
TIRUPUR DYEING UNITS TOLD TO CLOSE
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.61 |
|
|
1 |
Rs.75.32 |
|
Euro |
1 |
Rs.65.68 |
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.