MIRA
INFORM REPORT
|
Report Date : |
23.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAXWELL INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
C-6, Road No. 22, MIDC, Marol, Andheri (East), Mumbai – 400 093, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
14.01.1991 |
|
|
|
|
Com. Reg. No.: |
11-59804 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.369.654
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L18101MH1991PLC059804 |
|
|
|
|
Legal Form : |
Public Limited Company. The Company's shares are listed on the Stock
Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer, Importer and Exporter of all types of Textiles, Yarn, Hosiery,
Fabrics, Clothing and Footwear. |
|
|
|
|
No. of Employees
: |
1800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4400000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
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
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
C-6, Road No. 22, MIDC, Marol, Andheri (East), Mumbai – 400 093, |
|
Tel. No.: |
91-22-28257624 / 28257627 / 28257633 / 28226151/ 40209000 |
|
Fax No.: |
91-22-28371023 / 24 |
|
Email : |
corpcomm@viporg.com info@maxwellgobi.com |
|
Website : |
www.maxwellgobi.com |
|
|
|
|
Plants : |
Spinning Mill ·
Fax No.:
91-4285-222890 Process House ·
C-119, TTC Industrial Area, MIDC, ·
13-15 , SIPCOT, Perundurai .Erode District
Tamilnadu -638052 , Elastic Manufacturing Unit ·
105, SIDCO, Mudhalipalyam, Tirupur – 641606, Stitching Units ·
92, New GIDC, Umergaon, ·
SF-125/126/127, Appachimarmadam, Thingallur,
Erode District, Socks Manufacturing Unit ·
D-20, Okhla Industrial Area, Phase 1, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Sunil J. Pathare |
|
Designation : |
Vice Chairman and Managing Director |
|
Date of Birth/Age : |
17.07.1971 |
|
Qualification : |
B.com |
|
Date of Appointment : |
29.09.1992 |
|
List of
Directorship in other Companies : |
·
AVS Ventures Private Limited ·
Kolhapur Apparel Private Limited ·
Shogun Chemicals Private Limited ·
Maxwell Capital Management Private Limited ·
VIP Overseas Marketing Private Limited |
|
|
|
|
Name : |
Mr. Kapil J. Pathare |
|
Designation : |
Whole Time Director |
|
Date of Birth/Age : |
05.09.1979 |
|
Qualification : |
B.Com |
|
Date of Appointment : |
15.09.2003 |
|
|
|
|
Name : |
Dr. Arvind V. Kulkarni |
|
Designation : |
Director |
|
Date of Birth/Age : |
22.07.1932 |
|
Qualification : |
M.S. |
|
Date of Appointment : |
11.03.1996 |
|
|
|
|
Name : |
Mr. Gopal Sehjpal |
|
Designation : |
Director |
|
Date of Birth/Age : |
19.05.1944 |
|
Qualification : |
B.A.
(Eco.), M.A.
(philosophy), PGDPM,
Certified Quality Engineer. |
|
Date of Appointment : |
23.09.2002 |
|
List of
Directorship in other Companies : |
Oracle Management Private Limited |
|
|
|
|
Name : |
Mr. Chetan Sheth |
|
Designation : |
Director |
|
Date of Birth/Age : |
12.07.1963 |
|
Qualification : |
Engineer |
|
Date of Appointment : |
30.01.2004 |
|
List of
Directorship in other Companies : |
Prestige
Metal System Private Limited Sheth Fabrics Private Limited |
|
|
|
|
Name : |
Mr. Robin Banerjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manish Chhajed |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Vijaykumar K. Pathare |
|
Designation : |
Chairman |
KEY EXECUTIVES
|
Name : |
Mr. R Venkataraman |
|
Designation : |
Vice President Finance Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
40,097,868 |
63.57 |
|
|
40,097,868 |
63.57 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
40,097,868 |
63.57 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
875 |
- |
|
|
212,973 |
0.34 |
|
|
213,848 |
0.34 |
|
|
|
|
|
|
11,821,370 |
18.74 |
|
|
|
|
|
|
9,027,777 |
14.31 |
|
|
1,379,561 |
2.19 |
|
|
536,791 |
0.85 |
|
|
132,022 |
0.21 |
|
|
404,269 |
0.64 |
|
|
500 |
- |
|
|
22,765,499 |
36.09 |
|
Total Public shareholding (B) |
22,979,347 |
36.43 |
|
Total (A)+(B) |
63,077,215 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Importer and Exporter of all types of Textiles, Yarn,
Hosiery, Fabrics, Clothing and Footwear. |
||||||
|
|
|
||||||
|
Products : |
·
Hosiery ·
Yarn ·
Fabrics ·
Elastics ·
Cotton ·
Packing Materials |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Spinning Mills |
Spindles |
26208 |
26208 |
GENERAL INFORMATION
|
No. of Employees : |
1800 (Approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Attar and Company Chartered Accountants |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Sharp and Tannan Associates Chartered Accountant |
|
|
|
|
Group Company: |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 Millions |
|
4500000 |
5% Redeemable Preferences Shares |
Rs.100/- each |
Rs.450.000 Millions |
|
|
Total |
|
Rs.750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
63077215 |
Equity Shares |
Rs.2/- each |
Rs.126.154
Millions |
|
2435000 |
5% Redeemable Preferences Shares |
Rs.100/-
each |
Rs.243.500
Millions |
|
|
Total |
|
Rs.369.654 Millions |
Note:
- 3,57,50,000 Ordinary Shares of Rs. 2/- each allotted as fully paid
Bonus Shares by way of Capitalization of Share Premium.
- The Company has allotted 5%, 2435000
Redeemable Preference Shares of Rs 100/-each on 1st February,2006, Redeemable after 31.10.2016
with an option to the Company to Redeem it at the end of 8th, 9th and 10th
year in Three equal installments of Rs.81.166 millions each i.e.,
Redeemable on 31.01.2014, 31.01.2015 and 31.01.2016.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
369.654 |
369.654 |
369.654 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
736.009 |
714.323 |
693.403 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1105.663 |
1083.977 |
1063.057 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
685.399 |
610.641 |
645.535 |
|
|
2] Unsecured Loans |
54.971 |
63.956 |
63.375 |
|
|
TOTAL BORROWING |
740.370 |
674.597 |
708.910 |
|
|
DEFERRED TAX LIABILITIES |
110.007 |
106.398 |
100.581 |
|
|
|
|
|
|
|
|
TOTAL |
1956.040 |
1864.972 |
1872.548 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
759.170 |
792.763 |
829.493 |
|
|
Capital work-in-progress |
61.982 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.119 |
0.122 |
0.145 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
885.728
|
734.035 |
706.146
|
|
|
Sundry Debtors |
560.623
|
575.317 |
675.642
|
|
|
Cash & Bank Balances |
24.562
|
26.063 |
27.839
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
82.386
|
94.543 |
74.072
|
|
Total
Current Assets |
1553.299
|
1429.958 |
1483.699 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
341.695
|
284.197 |
|
|
|
Other Current Liabilities |
1.689
|
1.517 |
364.714
|
|
|
Provisions |
76.547
|
75.908 |
82.178
|
|
Total
Current Liabilities |
419.931
|
361.622 |
446.892
|
|
|
Net Current Assets |
1133.368
|
1068.336 |
1036.807
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
1.401 |
3.751 |
6.103 |
|
|
|
|
|
|
|
|
TOTAL |
1956.040 |
1864.972 |
1872.548 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2113.902 |
1918.965 |
2055.863 |
|
|
|
Other Income |
30.342 |
20.762 |
17.658 |
|
|
|
TOTAL (A) |
2144.244 |
1939.727 |
2073.521 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
1138.510 |
1055.143 |
1119.764 |
|
|
|
Employee Remuneration and Benefits |
99.344 |
96.998 |
84.064 |
|
|
|
Managerial Remuneration |
11.931 |
12.344 |
9.990 |
|
|
|
Manufacturing and Other Expenses |
545.535 |
437.594 |
423.724 |
|
|
|
Selling and Administrative Expenses |
108.786 |
73.730 |
62.079 |
|
|
|
Advertisement Expenses |
56.806 |
66.182 |
115.591 |
|
|
|
Deferred Expenses written off |
2.351 |
2.351 |
4.776 |
|
|
|
|
|
|
1819.988 |
|
|
|
Increase/(Decrease) in Finished Goods |
(82.893) |
(42.027) |
(4.557) |
|
|
|
TOTAL (B) |
1880.370 |
1702.315 |
1815.431 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
263.874 |
237.412 |
258.090 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
113.632 |
82.920 |
58.788 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
150.242 |
154.492 |
199.302 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
43.515 |
44.284 |
40.859 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
106.727 |
110.208 |
158.443 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
36.535 |
39.359 |
57.806 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
70.192 |
70.849 |
100.637 |
|
|
|
|
|
|
|
|
|
Less |
TAX ADJUSTMENT
FOR EARLIER YEARS |
4.887 |
6.164 |
NA |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
45.469 |
29.449 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
7.100 |
4.900 |
NA |
|
|
|
Preferences Share Capital Dividend |
12.175 |
12.175 |
NA |
|
|
|
Equity Share Capital Dividend |
25.231 |
25.231 |
NA |
|
|
|
Tax on Dividend |
6.213 |
6.359 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
60.055 |
45.469 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
129.556 |
140.533 |
205.491 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12.740 |
41.121 |
92.133 |
|
|
|
Components and Stores & Spares |
0.388 |
0.318 |
0.112 |
|
|
|
Capital Goods |
5.294 |
0.100 |
0.201 |
|
|
TOTAL IMPORTS |
18.422 |
41.539 |
92.446 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.81 |
0.80 |
1.21 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
566.370 |
661.900 |
539.000 |
525.890 |
|
Total Expenditure |
515.560 |
610.470 |
503.490 |
493.050 |
|
PBIDT (Excl OI) |
50.810 |
51.430 |
35.510 |
32.840 |
|
Other Income |
7.040 |
5.840 |
8.100 |
7.850 |
|
Operating Profit |
57.850 |
57.270 |
43.610 |
40.690 |
|
Interest |
21.130 |
29.320 |
18.520 |
63.230 |
|
PBDT |
36.720 |
27.950 |
25.090 |
(22.540) |
|
Depreciation |
11.080 |
11.130 |
9.440 |
11.530 |
|
Profit Before Tax |
25.640 |
16.820 |
15.65 |
(34.070) |
|
Tax |
8.530 |
5.590 |
5.140 |
(11.570) |
|
Profit After Tax |
17.100 |
11.220 |
10.510 |
(22.500) |
|
Net Profit |
17.100 |
11.220 |
10.510 |
(22.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.27
|
3.65 |
4.85 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.05
|
5.74 |
7.70 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.61
|
4.96 |
6.85 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.10 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.05
|
0.95 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.70
|
3.95 |
3.32 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated as a Private Limited Company in the year 1991,
Subject has been engaged in manufacturing and marketing of hosiery products and
readymade garments under the brand name of VIP and BLUE CHIP.
The company was converted into Public Limited Company during the year 1992.
During the initial years all important inputs like elastic and processed fabric
for hosiery products were sourced from the market. Over the years, as
requirements grew and also as a measure of integrate vertically as well as
maintain quality and assured supply of inputs, the company has started new
manufacturing units.
The companies are a market leader in cotton hosiery products and are sold under
well known brands, names like VIP-Frenchie, VIP BENZ etc. The company has also
ventured into readymade garments which are sold under its own brand name of
BLUE CHIP.
All the brands which the company has acquired exclusive rights, and enjoys a
good demand. The company has a well established all India Network of marketing
and distribution channels.
The company has recently set up a separate export division in order to provide
concentrated thrust on the export front.
OPERATIONS
During the year, the Company has achieved sales of Rs.2113.900 millions,
as against Rs.1918.900 millions, in the previous year. Sales from hosiery
business was Rs. 2031.700 millions, as against Rs. 1855.100 millions, in the
previous year representing an increase of 9.52% growth over the previous year.
The external sales of the Spinning Division was Rs. 82.200 millions as against
Rs. 63.900 millions in the previous year representing an increase of 28.64%
over the previous year. The performance of the spinning division continued to
be effected by the power situation in Tamilnadu.
Hosiery Division:-
During the year the hosiery division recorded better turnover. The
Company's manufacturing unit at Thingalur (Tamilnadu), Umbergaon (
Spinning
Division:-
The Spinning Division of the Company has been badly affected by the
power situation in the state of Tamilnadu. The industry is also facing a
trouble due to erratic movement of input cotton price which has resulted in
increase in price of yarn. During the year in review, the price of cotton both
in the local as well as in the International market increased substantially.
There was severe pressure on the price of cotton in the domestic market, with
higher exports of cotton as compared to the previous year. This resulted in a
steep increase in the price of cotton, consequently to this the price of yarn
also recorded unprecedented increases. Though few short term measures have been
taken by the Government to control this steep increase, it has yet to bring
about desired.
EXPANSION AND
DIVERSIFICATION
As you are aware, the entire process activity (except knitting) starting
from cotton to finished fabric is carried on by the Company. To meet the requirement
of the knitting of fabric the Company had to depend on third party knitters for
knitting of yarn. Many of the knitters were small timers with less than 5
machines and this coupled with power situation in Tamilnadu was resulting in a
higher increase in processing time. To resolve this issue, the Company has put
up a knitting unit in
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The textiles industry comprises of the following main segments, namely
Cotton Silk, Woolen and Hand crafted Textiles. The Cotton textiles segment can
again be subdivided into textiles and ready-made garments. The textile can be
further classified as Woven and Knitted fabric. Knitted fabric is used for both
innerwear as well in knit wear. The hosiery and garments sector is much more
labour intensive, small scale, employing 5-40 workers per unit. One of the
reasons for this is that the methods of production and the machinery used are
largely manual.
Most of the hosiery, knitting and dyeing units are located in the
residential areas and only a few of the large units are based in industrial
areas. Most the units and firms are owner driven rather than professionally
managed. Working hours in the factories generally are for 10- 12 hours a day,6
days a week. Majority of the industry is producing low value items, with low
productivity and low quality generally, using traditional, locally manufactured
and fabricated machinery. The machinery used for Innerwear are - hand flat
knitting machines, circular knitting machines and imported reconditioned
knitting machines; Knitwear has stitched on to multi thread lock stitch, chain
lock, flat-lock and overlock machines which are either manufactured
domestically or imported.
The industry uses both natural fibres/yarns - cotton, silk, jute, wool
and man made fibers such as polyester, viscose, nylon, acrylic and blended
fibres. Proper blended yarn of the required quality is often not available at
reasonable price. Presently the industry is facing serious challenges due to
steep increase in cotton and yarn prices both in domestic and international
markets. Some of the reasons attributed for the increase in the domestic cotton
prices has been free export of cotton, banning of export of cotton seeds and
allowing duty free import of other edible oil. The ban on export of cotton seed
oil has resulted in loss of revenues, which further contributed to the steep
increase in cotton price in domestic market. Though some short term measures
have been taken by the government like restriction on export of cotton,
imposition of duty on export of yarn, it has yet not had the desired impact.
OUTLOOK AND
The Textile sector is important to the country on account of its
contribution to income generation, employment and exports. The industry is self
reliant and complete in value chain right from availability of raw materials to
manufacture of garments. The outlook for textile industry in
CONTINGENT
LIABILITIES:
|
Particular |
As
on 31.03.2010 (Rs.
in Millions) |
As
on 31.03.2009 (Rs.
in Millions) |
|
Guarantees given by Bank |
3.505 |
3.394 |
|
Letter of Credits |
45.803 |
27.439 |
|
Claims against the company not acknowledged as debts |
3.383 |
0.000 |
|
Income Tax Liability in Appeal |
115.749 |
115.749 |
|
Export obligations |
19.652 |
38.186 |
|
Total |
188.092 |
184.768 |
Fixed Assets:
·
Goodwill and Other Rights on Acquisition
·
Land
·
Buildings
·
Factory Buildings
·
Furniture and Fixtures
·
Office Equipments
·
Plants Machinery
·
Vehicles
·
Electrical Installations
·
Boilers
·
Effluent Treatment Plant
·
Computer Systems
BUSINESS DESCRIPTION:
Subject is an India-based company. It is engaged in
manufacturing and marketing of innerwear. The Company’s brands include VIP Innerwear,
Frenchie, Frenchie X, and VIP Feelings and all of their sub brands. It operates
in two divisions: Hosiery and Others, and Spinning Mill. The Company uses both
natural fibres/yarns, which includes cotton, silk, jute; wool and man made
fibers, such as polyester, viscose, nylon, acrylic and blended fibres. Its
manufacturing units are located at Thingalur (Tamilnadu), Umbergaon (
WEBSITE DETAILS:
Profile:
Subject is a manufacturer of high quality 100%cotton yarn
manufacturer in
They are a part of the successful VIP Group, a leading supplier of world-class undergarments, with a
total group turnover of USD 75 million. The unit started functioning in 1995 at
the picturesque location of Kollappalur, 85 kms. from
The mill exports 60% production of our total capacity in countries like Europe,
Subject is promoted by eminent men of vision and foresight. At the helm of the affairs are Mr. Jaykumar Pathare as Chairman and Mr. L. Jaipal Reddy as Managing Director, who have vast experience of over 35 years in this field.
A sophisticated Spinning mill which mirrors the qualities
that distinguish the VIP Group of Companies, the success of their Spinning
Division lies in its efficiency, prompt delivery with high quality, modern
machinery, well trained and qualified man power and effective management. They
thrive on challenge and put productivity and reliability high on their list of
priorities.
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.44.38 |
|
|
1 |
Rs.72.34 |
|
Euro |
1 |
Rs.63.87 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.