MIRA
INFORM REPORT
|
Report Date : |
07.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
K G DENIM LIMITED |
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|
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Registered
Office : |
Then Thirumalai, |
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|
Country : |
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|
|
|
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Financials (as
on) : |
31.03.2010 |
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|
|
Date of
Incorporation : |
25.06.1992 |
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|
|
|
Com. Reg. No.: |
18-3798 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.256.651
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L17115TZ1992PLC003798 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CMBK03032B |
|
|
|
|
Legal Form : |
It is
a public limited liability company.
The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of
Business : |
The company
is engaged in manufacturing and marketing of denim fabrics of different size,
shades, weaves, blends and weights. |
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|
|
|
No. of
Employees : |
250
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 1700000 |
|
|
|
|
Status : |
Moderate |
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|
|
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Payment
Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having Moderate track. Profitability of the company
appears to be low. However trade relations are reported as fair. Business is
active. Payments are reported to be slow. The company can
be considered for business dealings with some caution. |
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 : |
Then Thirumalai, |
|
Tel. No.: |
91-4254-304401 |
|
Fax No.: |
91-4254-304400 |
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E-Mail : |
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|
Website : |
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Factory 1 : |
Jadayam
Palayam, Via Sirumugai, Taluka Mettupalayam, |
|
Tel. No.: |
91-42545-2331
- 34 |
|
Fax No.: |
91-42545-2335 |
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E-Mail : |
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Website : |
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|
Branches : |
|
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Tel. No.: |
91-422-212931
/ 212932 |
DIRECTORS
As on 29.09.2009
|
Name : |
Mr.
G. P. Muniappan |
|
Designation : |
Directors |
|
|
|
|
Name : |
Shri S R
Rajasekaran |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. G V S Desikan |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. K N V Ramani |
|
Designation : |
Directors |
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|
|
|
Name : |
Mr. V Jagadisan |
|
Designation : |
Directors |
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|
|
|
Name : |
Mrs. T Anandhi |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. A Velusamy |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. B Sriramulu |
|
Designation : |
Managing
Directors |
|
Qualification
: |
BE ( |
|
Experience : |
16 Years |
|
Date of
Appointment : |
03.11.2003 |
|
|
|
|
Name : |
Mr B Srihari |
|
Designation : |
Managing
Directors |
|
Qualification
: |
BE (Chem. Tech),
MS (Chem. Tech) |
|
Experience : |
14 Years |
|
Date of Appointment
: |
03.11.2003 |
|
|
|
|
Name : |
Mr. M. J.
Vijayaraaghavan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Surinder
Chhibber |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. Muthuswamy |
|
Designation : |
Company Secretary
|
|
|
|
|
Name : |
Mr. K G Baalakrishnan |
|
Designation : |
Executive
Chairman |
|
Qualification
: |
B. Com B. L. |
|
Experience : |
41 Years |
|
Date of
Appointment : |
03.11.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
As a % of (A+B+C) |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9,878,158 |
38.51 |
|
|
4,787,145 |
18.66 |
|
|
14,665,303 |
57.17 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
14,665,303 |
57.17 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
5,200 |
0.02 |
|
|
1,156,007 |
4.51 |
|
|
173,027 |
0.67 |
|
|
1,334,234 |
5.20 |
|
|
|
|
|
|
917,511 |
3.58 |
|
|
|
|
|
|
5,742,396 |
22.38 |
|
|
2,249,615 |
8.77 |
|
|
744,846 |
2.90 |
|
|
3,605 |
0.01 |
|
|
223,126 |
0.87 |
|
|
516,365 |
2.01 |
|
|
750 |
- |
|
|
1,000 |
- |
|
|
9,654,368 |
37.63 |
|
Total Public
shareholding (B) |
10,988,602 |
42.83 |
|
Total (A)+(B) |
25,653,905 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
25,653,905 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
The
company is engaged in manufacturing and marketing of denim fabrics of
different size, shades, weaves, blends and weights. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Installed Capacity |
Actual Production |
|
Looms |
185 Looms |
197 Looms |
|
Stenters |
3 Nos |
3 Nos |
GENERAL INFORMATION
|
No. of Employees : |
250
(Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
|
|
Name: |
Gopalaiyer and Subramanian Chartered Accountants |
|
Address: |
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|
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Associates/Subsidiaries
: |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
41000000 |
Equity Shares |
Rs.10/- each |
Rs.410.000
Millions |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
25691305 |
Equity Shares |
Rs.10/- each |
Rs.256.913
Millions |
Subscribed & Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
|
25653905 |
Equity Shares |
Rs.10/- each |
Rs.256.539
Millions |
|
|
Add : forfeited
Shares |
|
Rs.0.112 Million |
|
|
Total |
|
Rs.256.651 Millions |
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 |
256.651 |
256.651 |
256.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
170.204 |
168.510 |
290.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
426.855 |
425.161 |
546.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1119.227 |
1227.495 |
1234.100 |
|
|
2] Unsecured Loans |
54.333 |
46.149 |
64.900 |
|
|
TOTAL BORROWING |
1173.560 |
1273.644 |
1299.000 |
|
|
DEFERRED TAX LIABILITIES |
84.080 |
86.620 |
137.200 |
|
|
|
|
|
|
|
|
TOTAL |
1684.495 |
1785.425 |
1983.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1121.090 |
1242.170 |
1325.300 |
|
|
Capital work-in-progress |
1.247 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
53.168 |
53.172 |
33.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
634.938
|
637.838
|
591.600
|
|
|
Sundry Debtors |
312.911
|
244.544
|
317.500
|
|
|
Cash & Bank Balances |
63.875
|
76.031
|
58.700
|
|
|
Other Current Assets |
29.752
|
28.231
|
0.000
|
|
|
Loans & Advances |
172.063
|
227.890
|
175.900
|
|
Total
Current Assets |
1213.539
|
1213.539
|
1143.700
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
573.806
|
592.013
|
0.000
|
|
|
Other Current Liabilities |
116.117
|
117.317
|
505.700
|
|
|
Provisions |
14.626
|
15.121
|
14.000
|
|
Total
Current Liabilities |
704.549
|
724.451 |
519.700 |
|
|
Net Current Assets |
508.990
|
490.083 |
624.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1684.495 |
1785.425 |
1983.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2585.064 |
2205.425 |
2086.700 |
|
|
|
Other Income |
517.106 |
141.583 |
126.700 |
|
|
|
TOTAL (A) |
3102.170 |
2347.008 |
2213.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
1554.647 |
1493.153 |
|
|
|
|
Manufacturing
Costs |
404.747 |
395.344 |
2012.900 |
|
|
|
Other Operating
Expenses |
381.793 |
324.901 |
|
|
|
|
Other Expenses |
0.000 |
0.000 |
|
|
|
|
Increase Decrease
in stock |
55.730 |
(53.630) |
|
|
|
|
TOTAL (B) |
2396.917 |
2159.768 |
2012.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
705.523 |
187.240 |
200.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
196.489 |
197.812 |
176.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
508.764 |
(10.572) |
24.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
129.045 |
130.639 |
127.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
379.719 |
(141.211)) |
(103.700) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7.967 |
(47.300) |
(35.200) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
371.752 |
93.911 |
(68.500) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(31.505) |
90.076 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(29.811) |
(31.505) |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
857.121 |
756.666 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
87.476 |
263.641 |
NA |
|
|
|
Chemical |
66.024 |
56.395 |
NA |
|
|
|
Stores & Spares |
7.051 |
19.994 |
NA |
|
|
|
Capital Goods |
0.221 |
23.050 |
NA |
|
|
TOTAL IMPORTS |
160.772 |
363.080 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.07 |
-- |
|
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
754.500 |
826.200 |
953.900 |
|
Total Expenditure |
676.400 |
731.600 |
841.300 |
|
PBIDT (Excl OI) |
78.100 |
94.600 |
112.600 |
|
Other Income |
0.000 |
0.000 |
00 |
|
Operating Profit |
78.100 |
94.600 |
112.600 |
|
Interest |
40.400 |
39.800 |
38.400 |
|
Exceptional Items |
00 |
0.000 |
00 |
|
PBDT |
37.700 |
54.800 |
74.2.000 |
|
Depreciation |
33.700 |
34.000 |
33.700 |
|
Profit Before Tax |
4.000 |
20.800 |
40.500 |
|
Tax |
1.200 |
6.100 |
13.100 |
|
Provisions and contingencies |
0 |
0.000 |
0.000 |
|
Profit After Tax |
2.800 |
14.700 |
27.400 |
|
Extraordinary Items |
0.000 |
0.600 |
0.600 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
11.98 |
4.00 |
3.19 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.68 |
(6.40) |
4.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
23.29 |
(8.15) |
(5.31) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.88 |
(0.33) |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.39 |
4.69 |
3.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.72 |
1.67 |
2.20 |
LOCAL AGENCY FURTHER INFORMATION
Contingent Liability
(Rs. In
Millions)
|
|
2009-2010 |
|
a) Bills
discounted with bank |
209.609 |
|
b) Arrears of dividend on 10% Cumulative
Redeemable Preference share ( for the period 1st April 2005 to 31st
March 2007) |
20.000 |
|
c) Disputed
Excise Duties |
38.113 |
|
d) Disputed
Income Tax |
-- |
|
e) Guarantees given
to Bank for loan to Subsidiary |
60.246 |
|
f) Guarantees
given on behalf of Associates for fulfillment of their Export Obligation
under EPCG Scheme |
30.000 |
BIODATA
Incorporated as a public limited company in Jun.'92,
K G Denim Subject was promoted by K G Naidu and Kannapiran Mills to set up a
unit to manufacture denim fabric with an installed capacity of 10.5 mln mtr pa
at Jadayam palayam in Tamilnadu. Commercial production started in Jan.'94. It
produces denim fabric of different sizes, shades, weaves, blends and weights.
The colours include indigo blue, sulphur black, light blue, green, violet,
orange, yellow and purple. Subject exports are to the EU, the
During 1995-96, the company has also ambitious plans to market garments and has
launched brand building campaign.
In 1996-97, the company has set up a 100% EOU and increased the capacity upto
19 million meters per annum. This expansion budget amounted to Rs. 420.0
millions and company has till now spent Rs. 272.9 millions. The project has
been successfully commissioned on 16th May 1997.
ISO 14001 Certification from KPMG Quality, Registrar -
PERFORMANCE OF THE COMPANY:
During the year ended
31.03.2010, the Company
achieved an overall
production of 22.900 Millions meters of fabrics against
the previous year's
production of 21.500 Millions
meters. The sales for the year ended 31.03.2010 was Rs.2585.1 Millions as
against sales of Rs.2205.400 Millions during the previous year, representing an increase of 17%.
The company has
been able to stem the losses of earlier years and achieve positive results for the year.
INDUSTRY STRUCTURE & DEVELOPMENT:
The Indian denim
industry occupies an important position in the global denim fabric and garment manufacturing. After
During 2009-10,
the Indian denim industry witnessed a
surge in demand,
particularly, in the domestic
market. The exports were partially
affected by rise
in the value of the rupee. In
the processed fabric
sector, especially the bed Linen
demand for US markets showed signs of
improvement only towards the end
of the year.
In the apparel segment, the preference by
overseas customers for packaged ready made garments continued to increase.
OPPORTUNITIES AND THREATS:
The domestic demand
for denim is growing and the company is focusing on new
product developments in this segment.
The company is also concentrating on increase sale of its home textiles.
Apparel exports is expected to grow significantly in the next year.
The increase in
cotton and yarn prices in the beginning of 2010-11, the higher interest rates and the volatility in
exchange rates are the serious concerns
facing the company. The company is taking steps to mitigate
the effects of
cost increases by suitable
product mix changes and also
by
Actively managing
the exchange risk.
SEGMENT WISE PERFORMANCE:
The segment wise
results are presented in item 2.19 of the Notes on Accounts. Both fabric and Apparel division have done
well during the year in terms of volume and profitability.
Sales of denim
fabrics in domestic market increased in this year. The exports were maintained at previous year
levels. The sales of processed fabrics, including home textiles were also
maintained. However, the order position
for home textiles improved in the last quarter of the year. The company
also augmented its income by doing job work for processed fabrics for
outsiders.
In the apparel segments, the sales nearly
doubled with improved profitability
aided by the customer preference for packaged garments.
The higher sates
volume and lower cotton and yarn costs helped in posting positive results for
the year, 2009-10.
FINANCE:
The Directors acknowledge with gratitude, the valuable
assistance and support
extended by their Bankers for
term loans and working capital i.e..,
Indian Bank, Bank of India, Allahabad Bank, State Bank of India, State
Bank of Hyderabad, State Bank of Indore
and Indian Overseas Bank.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED 31st December 2010
|
Particular |
31.12.2010 |
31.12.2010 |
|
Quarter Ended |
9 Months Ended |
|
|
(a)
Net Sales / Income from operations |
908.400 |
2405.000 |
|
(b)
Other Operating Income |
46.500 |
129.600 |
|
Total
Income |
954.900 |
2534.600 |
|
|
|
|
|
Expenditure |
|
|
|
a) (Increase)
/ Decrease in stock in trade and work in progress |
7.000 |
67.200 |
|
b)
Consumption of raw materials |
408.200 |
1090.000 |
|
c)
Purchase of traded goods |
151.700 |
287.000 |
|
d)
Employees cost |
36.300 |
106.500 |
|
e)
Power and Fuel |
88.900 |
222.700 |
|
f)
Stores and Chemicals |
112.300 |
329.900 |
|
e)
Depreciation / Impairment |
33.700 |
101.400 |
|
f)
Other expenditure |
50.500 |
144.800 |
|
Total |
888.6 |
2349.500 |
|
|
|
|
|
Profit
from operations before other income, interest and exceptional Items |
79.300 |
185.100 |
|
Other
income |
0.000 |
0.000 |
|
Profit
before interest and exceptional Items |
79.300 |
185.100 |
|
Interest
and finance Cost |
38.400 |
118.600 |
|
Loss/
Gain on variation in Foreign Exchange |
0.400 |
0.700 |
|
Profit after Interest but
before Exceptional Items |
40.500 |
65.800 |
|
Exceptional
Items |
0.000 |
0.000 |
|
Profit (+)/Loss(-) from
Ordinary Activities before tax |
40.500 |
65.800 |
|
Tax
expense |
|
|
|
Current
Tax |
9.000 |
12.800 |
|
MAT
Credit Entitlement |
(9.000) |
(12.800) |
|
Deferred
Tax |
13.100 |
20.400 |
|
Prior
Year taxes |
0.000 |
0.000 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
27.400 |
46.400 |
|
Extraordinary items |
(0.600) |
(1.200) |
|
Net
Profit (+) / Loss (-) for the year period |
28.000 |
46.600 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
256.700 |
256.700 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
- |
- |
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for
the period, for the year to date and for the previous year (not to be annualised) |
1.07 |
1.77 |
|
(a) Basic and diluted EPS
after Extraordinary items for the period, for the year to date and for the
previous year (not to be annualised) |
1.09 |
1.82 |
|
Public
shareholding |
|
|
|
Number of shares |
10988302 |
10988302 |
|
Percentage of shareholding |
42.83 |
42.83 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
|
|
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
13.64 |
2000000 |
|
Percentage
of shares (as a % of total share capital of the company) |
7.80 |
13.64 |
|
|
|
7.80 |
|
b)
Non Encumbered |
|
|
|
Number
of shares |
12665303 |
|
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
86.36 |
12665303 |
|
Percentage
of shares (as a % of total share capital of the company) |
49.38 |
86.36 |
|
|
|
49.38 |
Notes:
1. The above
Unaudited Financial results were reviewed by the Audit Committee and approved
by the Board of Directors at their meeting held on 14th February
2011.
2. The Auditors of
the Company have carried out a Limited Review of the aforesaid financial
results for the quarter ended/ Nine Months ended 31.12.2010 in term of Clause
41 of the Listing Agreement with Stock Exchange.
3. Figures of the
previous year / quarter ended have been regrouped / re arranged wherever
necessary.
4. Information on
Investor Complaints pursuant to clause 41 of the listing agreement for the
Quarter ended 31st December 2010 - Opening Balance - Nil, Additions
- 3, Disposals - 3, Closing Balance - Nil.
5. The manufacture
and sale of FABRICS and APPARELS in which Company is mainly engaged,
considering the nature of the business, is only a single reportable segments as
Textiles.
FIXED
ASSETS
- Land
- Buildings
- Machinery
- Electric Machinery
- Office Equipments
- Furniture & Fittings
- Motor Vehicles
As Per Website Details:
The company was incorporated in
the year 1992. From the conception to the commissioning stage it took a record
time of only 18 months to complete the project.The plant is located at
Jadayampalayam Village, near Mettupalayam at the foot hills of the Nilgris and
incorporates the state of the Art of Technology with latest machineries
imported from M/S. Hacoba, Monforts & Sucker + Muller of Germany and
Picanol of Belgium.
An Effluent Treatment Plant is
also installed as a part of the project to ensure conformity to the effluent
standards expected. Trail production started on the 12th of September of 1993
and the commercial production started soon after on 18th January 1994.
Subject, an acronym for the
founder of the group, Sri K Govindasamy Naidu, is a brand / Trademark, well
known in the textile circles of their country. KG group is based at
The group also has considerable
presence in other activities such as Engineering, Arts, Information system
etc., the group is one of the largest manufacturers of OE yarn in the country
and it is but natural that the group decided to capitalize its core strength by
integrating forward and establishing a Denim unit.
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. 44.78 |
|
|
1 |
Rs. 73.43 |
|
Euro |
1 |
Rs. 65.27 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.