MIRA INFORM REPORT

 

 

Report Date :

19.06.2012

 

IDENTIFICATION DETAILS

 

Name :

SALEM SPICES PRIVATE LIMITED

 

 

Registered Office :

IIND Floor, 3 19 D 3 Rajaji Avenue, New Fairlands, Salem – 636016, Tamil Nadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

16.01.2003

 

 

Com. Reg. No.:

18-010437

 

 

Capital Investment / Paid-up Capital :

Rs.1.510 millions

 

 

CIN No.:

[Company Identification No.]

U15495TZ2003PTC010437

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHES24609E

 

 

PAN No.:

[Permanent Account No.]

AAGCS9732E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Paper Sachets, Fabric Sachets, Pot Pourrie, Topiary, Reed Diffusers, Dry Flowers etc.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 53000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some losses in the current year. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealing 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 :

IIND Floor, 3 19 D 3 Rajaji Avenue, New Fairlands, Salem - 636016, Tamilnadu,

Tel. No.:

91-427-2336095 / 5537811

Fax No.:

91-427-2336096

E-Mail :

rsspl@eth.net

stilin@vsnl.com

salemspices@eth.net

arun@homefragranceindia.com

Website :

http://www.salem.infoisinfo.co.in

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Rajaram Nirmala

Designation :

Director

Address :

67/2, New Fair Lands, Salem – 636016, Tamil Nadu, India

Date of Birth/Age :

06.09.1969

Date of Appointment :

16.01.2003

DIN No.:

00248011

Other directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U45201TZ1981PTC001127

PRABHAKAR APARTMENTS PRIVATE LIMITED

Director

20/07/2001

20/07/2001

-

Active

NO

2

U15495TZ2003PTC010437

SALEM SPICES PRIVATE LIMITED

Director

16/01/2003

16/01/2003

-

Active

NO

3

U17111TZ1980PLC000987

SALEM TEXTILES AND INDUSTRIES LIMITED

Director

25/06/2003

25/06/2003

-

Active

NO

4

U01122TZ2006PLC013006

NILGIRIS FLOWER COMPANY LIMITED

Director

10/8/2006

10/8/2006

-

Active

NO

5

U00113TZ1995PTC005973

SALEM GREEN PLANTS Private LIMITED

Director

30/09/2009

27/02/2009

-

Active

NO

 

 

Name :

Mr. Rajeswaran Sathyaraj

Designation :

Director

Address :

4/65, Power Apartments, Vimala Street, Ayyavu Naidu Colony, Aminjikarai, Chennai – 600029, Tamil Nadu, India

Date of Birth/Age :

03.06.1965

Date of Appointment :

16.01.2003

DIN No.:

00247944

Other directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U45201TZ1981PTC001087

B STRUC PRIVATE LIMITED

Director

22/01/1994

22/01/1994

-

Active

NO

2

U17219TZ1984PLC001509

SALEM FABRICS LIMITED

Director

25/01/1994

25/01/1994

-

Active

NO

3

U17231TZ1979PTC000869

MARKS THREAD (INDIA) PRIVATE LIMITED

Director

20/07/2001

20/07/2001

-

Active

NO

4

U17121TZ1984PLC001526

SALEM PROCESSING MILLS LIMITED

Director

21/07/2001

21/07/2001

-

Active

NO

5

U15495TZ2003PTC010437

SALEM SPICES PRIVATE LIMITED

Director

16/01/2003

16/01/2003

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

Ramasamy Prabajaran Rajaram

 

10503

Rajaram Nirmala

 

300

Rajeswaran Sathyaraj

 

4300

Total

 

15103

 

As on 30.09.2011

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Paper Sachets, Fabric Sachets, Pot Pourrie, Topiary, Reed Diffusers, Dry Flowers etc.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

  • Axis Bank Limited, Omalur Main Road, Salem, Tamilnadu 636007, India
  • Canara Bank, Salem, Tamilnadu, India

 

 

Facilities :

SECURED LOAN

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

A FROM AXIS BANK, Salem

i) Working Capital Loan

On the Hypothecation of Raw Materials of Dry Flowers, Work-in-progress, Finished Goods and Bills accompanied by Bill of Lading/Air Way Bill and guaranteed by the two directors of the Company and on the equitable mortgage of house building owned by director.

 

 

 

 

 

 

14.995

 

 

 

 

 

 

9.098

(ii) Bank Guarantee Loan

Hire Purchase Loan from Bank/ Finance Companies

 

0.748

 

1.408

Total

15.743

10.506

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Bala and Sakthi

Chartered Accountant

Address :

7 AA Ramakrishan Road, Salem, Tamilnadu 636007, India

 

 

Sister Concern:

  • Nilgiris Flower Company Private Limited
  • Salem Green Plants  Limited
  • Eastern Valley Products

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

No. of Shares

Type

Value

Amount

 

 

 

 

25000

Equity Shares

Rs. 100 each

Rs. 2.500 millions

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

15103

Equity Shares

Rs. 100 each

Rs. 1.510 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1.510

1.510

1.510

2] Share Application Money (Pending Allotment)

0.400

0.400

0.400

3] Reserves & Surplus

11.459

15.192

12.014

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

13.369

17.102

13.924

LOAN FUNDS

 

 

 

1] Secured Loans

15.743

10.506

10.120

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

15.743

10.506

10.120

DEFERRED TAX LIABILITIES

0.195

0.195

0.195

 

 

 

 

TOTAL

29.307

27.803

24.239

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5.489

5.899

4.681

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

2.196

2.195

2.195

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

18.952

15.930

10.273

 

Sundry Debtors

7.495

3.077

5.720

 

Cash & Bank Balances

1.642

1.313

0.793

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

4.059

9.106

8.684

Total Current Assets

32.148

29.426

25.470

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

9.609

7.950

6.769

 

Other Current Liabilities

0.917

0.892

0.826

 

Provisions

0.000

0.875

0.512

Total Current Liabilities

10.526

9.717

8.107

Net Current Assets

21.622

19.709

17.363

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

29.307

27.803

24.239

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

INCOME

 

 

 

 

 

Sales

53.105

69.964

34.114

 

 

Miscellaneous Income

3.393

6.413

2.294

 

 

TOTAL                                     (A)

56.498

76.377

36.408

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Cost

16.561

35.882

10.751

 

 

Stores & Packing Cost

22.865

15.551

11.374

 

 

Personnel Cost

2.736

3.674

2.251

 

 

Power & Fuel Cost

0.476

0.747

0.637

 

 

Maintenance Cost

0.106

0.242

0.124

 

 

Selling Cost

11.804

6.951

3.503

 

 

Administration Cost

2.977

4.020

2.821

 

 

Increase in Finished stock

(1.427)

2.701

1.125

 

 

TOTAL                                     (B)

56.098

69.768

32.586

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

0.400

6.609

3.822

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3.381

1.882

1.474

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

(2.981)

4.727

2.348

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.752

0.675

0.574

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(3.733)

4.052

1.774

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.874

1.688

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(3.733)

3.178

0.086

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

15.192

12.015

11.929

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

11.459

15.192

12.015

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Earnings (FOB)

48.532

72.373

27.407

 

TOTAL EARNINGS

48.532

72.373

27.407

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

0.777

Nil

Nil

 

 

Fragrance and Packing Materials

8.099

2.839

3.522

 

TOTAL IMPORTS

8.876

2.839

3.522

 

 

 

 

 

 

Earnings Per Share (Rs.)

(247)

210

5.68

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(6.61)

4.16

0.23

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.03

5.79

5.20

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(9.92)

11.47

5.88

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.28

0.24

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.98

1.18

1.31

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.05

3.03

3.14

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business•

Yes

7) Promoter’s background

Yes

8) No. of employees

No

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter

--

23) Banking Details

Yes

24) Banking facility details

No

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

 

OPERATION:

 

 

The Company engaged in the activity of purchasing natural flowers and processing it by way of drying and dyeing the flowers and exporting to foreign countries. By this the Company made a Turnover of Rs.56.498 millions (Last Year Rs. 76.377 millions) and earned Cash Loss of Rs.2.980 millions against Rs. 4.727 millions in the last year.

 

100 % EOU UNIT

 

The Companies Has Maintained the Status of 100% Export Oriented Undertaking (EOU) UNDER the Ministry of Commerce and Industry, Government of India New Delhi

 

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U15495TZ2003PTC010437

Name of the company

SALEM SPICES PRIVATE LIMITED

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

·         IIND Floor, 3 19 D 3 Rajaji Avenue, New fairlands, Salem, Tamilnadu 636016, India

 

·         rsspl@eth.net

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

10208667

Type of charge

- Others

(Change in Rate of Interest as per RBI Guidelines)

Particular of charge holder

  • Axis Bank, Omalur Main Road, Salem, Tamilnadu 636007, India

 

Nature of instrument creating charge

Amendment cum Link Agreement

Date of instrument Creating the charge

21.03.2012

Amount secured by the charge

Rs.15.000 millions

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

Rate of Interest

Presently BR + 3.25 % i.e. 13.25 %. As decided by the bank from time to time.

 

Terms of Repayment

 On demand for a period of 180 days

Margin

10%

 

Extent and Operation of the charge

Security offered for repayment of loans on dues with other cost

 

Short particulars of the property charged

Hypothecation of entire current assets like stocks and receivables

Particulars of the present modification 

Modified Rate of Interest with effect from 01.07.2010. The rate of interest sanctioned was BPLR - 3.25%. The revised rate of interest is BR+3.25%

 

FIXED ASSETS

 

  • Building (At Leasehold Factory)
  • Plant and Machinery
  • Vehicles
  • Computer
  • Furniture and Fixtures

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.55.60

UK Pound

1

Rs.87.34

Euro

1

Rs.70.66

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

32

 

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.