MIRA INFORM REPORT

 

 

Report Date :

06.06.2011

 

IDENTIFICATION DETAILS

 

Name :

SHANMUGA HAIR PRODUCTS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

No.199/200, 1st Main Road, K. K. R. Garden, Madhavaram, Chennai-600060, Tamil Nadu.

 

 

Country :

India

 

 

Date of Incorporation :

18.09.2007

 

 

Com. Reg. No.:

18-064785

 

 

Capital Investment / Paid-up Capital :

Rs. 10.049 millions.

 

 

CIN No.:

[Company Identification No.]

U74999TN2007PTC064785

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHES28557E

 

 

PAN No.:

[Permanent Account No.]

AALCS1782M

 

 

Legal Form :

Private Limited Liability Company.

 

 

Line of Business :

Manufacturer, Trader, Dealer and Exporter of Human Hair, Natural Hair, Weft Hair, Human Hair Wigs, Human Hair Extensions etc.

 

 

No. of Employees :

210 (In Office-10 and In Factory -200) (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 40000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a successor of “Shanmuga hair products” a proprietory concern started in the year 1999

 

It is an established company having moderate track. The management of the company has not field its financial to the government department. Since its incorporation. Business is active. Payments are unknown.

 

The company can be considered for business dealings with some cautions.

 

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)

India

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 :

No.199/200, 1st Main Road, K. K. R. Garden, Madhavaram, Chennai-600060, Tamil Nadu, India

E-Mail :

hairindia_shp@yahoo.co.in

Website :

www.khair.in

www.indhair.com

 

 

Factory 1 :

No.41, Old Milk Colony Road, Kodungalyur, Chennai-600118, Tamil Nadu, India

Tel. No.:

91-44-25550018 / 25554771

Fax No.:

91-44-25554678

 

 

DIRECTORS

 

 

Name :

Ms. Bandi Prathibha Jyothi

Designation :

Managing Director

Address :

No.199/200, 1st Main Road, K. K. R. Garden, Madhavaram, Chennai-600060, Tamil Nadu, India

Date of Birth/Age :

29.05.1979

DIN No :

01652654

 

 

Name :

Mr. Bandi Kanaka Murli Krishna

Designation :

Director

Address :

No.199/200, 1st Main Road, K. K. R. Garden, Madhavaram, Chennai-600060, Tamil Nadu, India

Date of Birth/Age :

05.06.1977

DIN No :

01636685

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

 

Names of Shareholders

 

No. of Shares

Bandi Prathibha Jyothi

 

5000

Bandi Kanaka Murli Krishna

 

5000

 

 

 

Total

 

10000

 

AS ON

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader, Dealer and Exporter of Human Hair, Natural Hair, Weft Hair, Human Hair Wigs, Human Hair Extensions etc.

 

 

Products :

·         Human Hair

·         Natural Hair

·         Human Hair Wigs

·         Human Hair Extensions

 

 

Exports :

 

Products :

·         Human Hair

Countries :

·         North America

·         South America

·         East Africa

·         Oceania

·         Europe

·         Mideast

 

 

Terms :

 

Selling :

L/C, Credit

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

 

 

No. of Employees :

210 (In Office-10 and In Factory -200) (Approximately)

 

 

Bankers :

·         Central Bank of India Limited, 48/49, Montieth Road, Egmore, Chennai-600008, Tamil Nadu, India

·         State Bank of Hyderabad, Main Branch, 45, Second Line Beach, Chennai-600001, Tamil Nadu, India.

 

 

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

Mr. Rajan Subramanien

Chartered Accountant

Address :

Flat B, 2nd Floor, #961, Awal Shanmugam Salal, Gopalapuram, Chennai-600086, Tamil Nadu, India

 

 

CAPITAL STRUCTURE

 

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

1250000

Equity Shares

Rs.10/- each

Rs. 12.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

1004900

Equity Shares

Rs.10/- each

Rs. 10.049 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2011

Sales Turnover

 

 

150.000

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

PROFILE

 

This is a private limited company now. It started as a proprietorship firm with Mr. B K Murali Krishna as its proprietor in 1999. It was converted into a private limited company in the year 2007 with 2 directors. Established in the year 1999 in a 2400 sq. ft. factory with 7 people working – now the factory is spread across 10000 sq. mts and over 170 trained workers. They produce remy, single drawn, curly hair, colored hair in 47 different shades, keratin tipped extensions and machine and hand wafted hair.

 

Human hair-wigs can be used to cloak balding, to compensate hair loss on account of illness or they can be just worn as costumes and also to enhance one’s beauty. They come in various colors, and are available in many sizes and styles. They can be used by just anybody, by people of all ages and having different body sizes. Hairs are an important part of the body and they represent one’s personality. A stylish hair wig can completely change one’s image. So do not be in a hurry while choosing a wig- choose the correct one and here subject can help you.

 

Subject are one of the well recognized manufacturers and exporters of natural human hair. They range of hair comprises Human Hair, Natural Hair, Weft Hair, Human Hair Wigs, Human Hair Extensions, and more. These are extensively demanded by their esteemed clients based in different parts of the world owing to features such as fine texture, natural appearance and easy usage. They acquire hair form various temples and rich and reputed salons. To provide natural beauty, their range is available in natural colors like natural black, dark brown, light brown, medium grey, golden, white etc.

 

The turnover of the firm is anywhere between 100.000 – 150.000 millions. No balance sheet has been filed at the registrar of companies from inception that is 2007-2008.

 

They have registered themselves at Trade India one of the biggest B2B portals of India and report that they get very few orders from Trade India.

 

Confidential – They have a complaint that when and if they receive an order thru Trade India that orders seems to be at the hands of other human hair dealers in the city. They are wondering if Trade India in intercepting the orders and are passing it on to others.

 

Their bankers are Indusind Bank Limited.

 

 

FORM 8

 

Corporate identity number of the company

U74999TN2007PTC064785

Name of the company

SHANMUGA HAIR PRODUCTS (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

No.199/200, 1st Main Road, K. K. R. Garden, Madhavaram, Chennai-600060, Tamil Nadu, India

This form is for

Creation of charge

Type of charge

Any Interest in Immovable Property

Others

Particular of charge holder

State Bank of Hyderabad, Main Branch, 45, Second Line Beach, Chennai-600001, Tamil Nadu, India.

Nature of instrument creating charge

Agreement loan -cum- Hypothecation dated 28.10.2009

Date of instrument Creating the charge

28.10.2009

Amount secured by the charge

Rs. 57.500 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

1.EPC (Hyp)9.75% (Applicable 12.25%-2.50%)

2.Term Loan 13.75% for First Year(Applicable 12.25%+1.50%=13.75%)

 

Terms of repayment

1.Export Packing Credit : Repayment on Demand

2. Term Loan : 72 EMI of Rs.1.14Lacs Per month + Interest with 6 months moratorium Term

 

Margin

Term Loan 35%

Packing Credit 25%

 

Extent and operation of the charge

1.Hypothecation of Stocks and Receivables

Short particulars of the property charged (Including location of the property)

Stocks and Receivables

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.44.85

UK Pound

1

Rs.73.29

Euro

1

Rs.64.89

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

26

 

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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.