MIRA
INFORM REPORT
|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
SOUNDARARAJA MILLS LIMITED (w.e.f. 07.10.1967) |
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|
|
|
Formerly Known
As : |
SOUNDARARAJA MILLS PRIVATE
LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
11.06.1937 |
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Com. Reg. No.: |
18-014821 |
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Capital
Investment / Paid-up Capital : |
Rs. 9.693
Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
U17111TZ1937PLC014821 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES00305E/ CHES16772A |
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PAN No.: [Permanent Account No.] |
AAACS8799R |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business
: |
Manufacturers and Exporters of Synthetic and Cotton Yarn. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2860000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record. There
appears slight dip in sales and incurred some loss during 2012. However, networth of the company seems to be strong. Trade relations
are repoted to be fair. Buisnes is active. Payments are reported to be
usually correct and as per commitment. The company can be considered for normal business dealings at usual
trade terms and condition. |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’
list as of 31-03-2012.
LOCATIONS
|
Registered / Administrative / Corporate Office : |
|
|
Tel. No.: |
91-451-2430104
/ 2430105 |
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Fax No.: |
91-451-2430593 |
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E-Mail : |
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|
Website : |
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Factory 1 : |
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|
Tel. No.: |
91-451-2470067 |
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Fax No.: |
91-451-2471407 |
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|
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Factory 2 : |
Kamarajar Salai, Nedungadu - 609603, |
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Tel. No.: |
91-4368-261293/ 261284 |
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Fax No.: |
91-4368-261519 |
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|
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Factory 3 : |
Nillakottai Taluk, Dindigul District, Siddargalnatham – 624219, |
DIRECTORS
As on 27.07.2012
|
Name : |
Mr. Soundarajan Ranjit |
|
Designation : |
Managing Director |
|
Address : |
36 Vijayashree, Arch Bishop Avenue, Chennai-600028, Tamilnadu, India |
|
Date of Birth/Age : |
16.07.1963 |
|
Qualification : |
M.S.A.S.(USA) |
|
Date of Appointment : |
01.07.1985 |
|
DIN No.: |
00307132 |
|
|
|
|
Name : |
Mr. Narayanaraja Muralidharan |
|
Designation : |
Director |
|
Address : |
19a Kasimalli, Dindigul-624003, Tamilnadu, India |
|
Date of Birth/Age : |
09.05.1959 |
|
Qualification : |
D.T.T. |
|
Date of Appointment : |
30.04.2006 |
|
PAN No.: |
ACMPM4302P |
|
DIN No.: |
00391413 |
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|
|
|
Name : |
Mr. Ranjit Soundarajan Sangeetha |
|
Designation : |
Whole-time director |
|
Address : |
Lakshmi Soundara, G T N Salai, Dindigul District-624005, Tamilnadu, India |
|
Date of Birth/Age : |
09/11/1966 |
|
Qualification : |
BBA |
|
Date of Appointment : |
18.02.2008 |
|
PAN No.: |
AACPR6741F |
|
DIN No.: |
02186527 |
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|
|
|
Name : |
Mr. Venkattramnaidu Athinarayanasamy |
|
Designation : |
Executive Director |
|
Address : |
Old-17, New-25, Krishnarao, Second St. Dindigul-624001, Tamilandu, India |
|
Date of Birth/Age : |
08.03.1958 |
|
Qualification : |
B.COM. |
|
Date of Appointment : |
24.06.2010 |
|
PAN No.: |
AFEPA7549D |
|
DIN No.: |
03136026 |
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|
|
|
Name : |
Mr. Kiran Ranjit Soundarajan |
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Designation : |
Director |
|
Address : |
Lakshmi Soundra, G.T.N Salai, B.K Puram, Dindigul-624005, Tamilnadu, India |
|
Date of Birth/Age : |
08.08.1988 |
|
Date of Appointment : |
24.06.2010 |
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PAN No.: |
ATCPK3466D |
|
DIN No.: |
03164195 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 27.07.2012
Note: Shareholding details file attached
As on 27.07.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Bodies corporate |
18.00 |
|
Directors or relatives of Directors |
71.00 |
|
Others |
11.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of Synthetic and Cotton Yarn. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of State Bank of Mysore, Chennai Main Branch, 231 NSC Bose
Road, Chennai - 600001, Tamilnadu, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
N Balavenkatesan Chartered Accountants |
|
Address : |
91/31, New Agraharam, Palani Road, Dindigul, Tamilnadu, India |
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PAN No.: |
ABEPB3151A |
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Associates : |
· Soundararaja Textiles Company K and Y Enterprises Private Limited Soundararaja and Company |
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Other Related
Parties : |
· Vijayashree Spinning Mills Limited # # The balance due to Vijashree Spinning Mills Limited is yet to be reconciled / confirmed for want of relevant information from Vijayashree Spinning Mills Limited. |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
969336 |
Equity Shares |
Rs. 10/-
each |
Rs. 9.693
Millions |
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|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
9.693 |
9.693 |
|
(b) Reserves & Surplus |
|
705.037 |
706.420 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) Long-term borrowings |
|
197.162 |
417.070 |
|
(b) Deferred tax liabilities (Net) |
|
80.402 |
76.856 |
|
(c) Other long term liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
|
245.161 |
112.945 |
|
(b) Trade payables |
|
19.916 |
59.476 |
|
(c) Other current
liabilities |
|
152.821 |
146.741 |
|
(d) Short-term provisions |
|
8.641 |
8.010 |
|
TOTAL |
|
1418.833 |
1537.211 |
|
|
|
|
|
|
II.
ASSETS |
|
|
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|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
797.868 |
850.665 |
|
(ii) Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
|
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.458 |
0.458 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
150.350 |
122.063 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
393.909 |
481.897 |
|
(c) Trade receivables |
|
56.188 |
56.625 |
|
(d) Cash and cash
equivalents |
|
20.060 |
25.503 |
|
(e) Short-term loans and
advances |
|
0.000 |
0.000 |
|
(f) Other current assets |
|
0.000 |
0.000 |
|
TOTAL |
|
1418.833 |
1537.211 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
9.693 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
929.933 |
|
|
4] (Accumulated Losses) |
|
|
(225.997) |
|
|
NETWORTH |
|
|
713.629 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
975.126 |
|
|
2] Unsecured Loans |
|
|
68.640 |
|
|
TOTAL BORROWING |
|
|
1043.766 |
|
|
DEFERRED TAX LIABILITIES |
|
|
76.500 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1833.895 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
903.276 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.459 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
719.689
|
|
|
Sundry Debtors |
|
|
97.541
|
|
|
Cash & Bank Balances |
|
|
20.603
|
|
|
Other Current Assets |
|
|
2.015
|
|
|
Loans & Advances |
|
|
184.123
|
|
Total
Current Assets |
|
|
1023.971 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
28.331
|
|
|
Other Current Liabilities |
|
|
63.216
|
|
|
Provisions |
|
|
2.264
|
|
Total
Current Liabilities |
|
|
93.811
|
|
|
Net Current Assets |
|
|
930.160
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1833.895 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
991.485 |
1375.464 |
1181.280 |
|
|
|
Other Income |
7.909 |
6.177 |
22.675 |
|
|
|
TOTAL (A) |
999.394 |
1381.641 |
1203.955 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
481.608 |
611.894 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
67.026 |
256.161 |
|
|
|
|
Employee benefit expense |
72.152 |
73.997 |
|
|
|
|
Other expenses |
241.807 |
274.927 |
|
|
|
|
TOTAL (B) |
862.593 |
1216.979 |
1019.266 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
136.801 |
164.662 |
184.689 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
81.329 |
102.473 |
274.057 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
55.472 |
62.189 |
(89.368) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
53.309 |
59.075 |
60.343 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
2.163 |
3.114 |
(149.711) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3.546 |
0.629 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(1.383) |
2.485 |
(149.711) |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(223.513) |
(225.997) |
(76.286) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(224.896) |
(223.513) |
(225.997) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
151.088 |
146.361 |
56.023 |
|
|
TOTAL EARNINGS |
151.088 |
146.361 |
56.023 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
NA |
0.000 |
|
|
|
Stores & Spares |
NA |
NA |
0.854 |
|
|
TOTAL IMPORTS |
NA |
NA |
0.854 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(737.34) |
2.56 |
(154.44) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(0.14)
|
0.18 |
(12.43) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.22
|
0.23 |
(12.67) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.15
|
0.20 |
(7.77) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.00 |
(0.21) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.62
|
0.74 |
1.46 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10
|
1.72 |
10.92 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
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 |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER DEVELOPMENTS |
|
Soundararaja
Finance Limited |
|
RBI |
Did not comply with the provisions of rbi act, 1934 |
Rejection of application for certificate of registration
as NBFC |
Not appearing in the list dated 31/10/2007 |
|
Soundararaja
Finance Limited |
|
EPFO |
Exempted and unexempted establishments defaulted with epfo
including provident fund, pension and edli contribution, administration
charges and penal damages of Rs. .3.156 millions |
Among other actions, names of defaulters put on the epfo
website |
|
CORPORATE INFORMATION
Subject, Pioneers in the field of Textiles came into existence in the year 1937. Late Sri.G.T.Narayanaswamy Naidu laid the foundation of the mill with a great passion to produce Quality Yarn. From the beginning, they focused to produce fine quality yarn and made every effort to achieve this objective. Today they are the market leader and active worldwide exporter of Synthetic and cotton yarn. Their success over the years further strengthens their slogan ‐ "Soundararaja In pursuit of Excellence". Further, the Govt. of India has recognized them as a "Star Export House”. Their expertise and quality workmanship has won them a notable place in the world of business. They are also into markets that go beyond the borders of INDIA. Their Group Comprises of four independent production centers with an aggregate capacity of 80464 Ring and Airjet Spindles. While their company has grown significantly through the years, their core values of serving their customers both ethically and responsibly has remained the same.
REVIEW OF
OPERATIONS:
The introduction of Bt-cotton seeds in India coupled with favorable climate patterns bloomed the cotton production from 16 Million Bales (170 kg each) in 2004-05 to 35.2 Million Bales in 2011-12. The global cotton output has increased between 8% and 10% during 2010-11 and 2011-12. The continuous economic and financial crisis in western economies downsized the output trends across textile industries. The depreciation of their home currency against US $ also negatively impacted on Indian textile industry. The challenging scenario in cotton yarn markets compelled the Company to move into synthetic and blended yarn segments. The Company is able to handle both natural fibers as well artificial fibers, such as polyester, viscose, etc with required adjustments in plant. The slight fall in turnover of the Company was due to moving from cotton yarn into blended yarn segments. However, the Company’s continuous efforts in overseas markets to post a marginally improved export performance during 2011-12 when compared to the earlier year.
The irregular power supply, rise in input cost, rise in fuel expenditure, etc escalated the cost and resulted in lower margins. The efficient management of Company’s finances enabled to reduce financial overheads reasonably. The Company was able to achieve a small operational profit during the year. However due to the provision for higher Deferred Taxes, the Company ended with book losses.
The Company hopes to achieve improved performance in years ahead
UNSECURED LOAN
|
Particulars |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
In Millions) |
|
Long Term Borrowing |
|
|
|
Public deposits |
26.302 |
8.106 |
|
Shor term Borrowing |
|
|
|
Public deposits |
25.475 |
46.019 |
|
Total |
51.777
|
54.125
|
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Letter of Credit |
7.411 |
7.411 |
|
|
|
|
FIXED ASSETS
· Land (Freehold)
Buildings
Plant
and Machinery
Electrical
Machinery
Furniture
and Fittings
Vehicles
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 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 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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared by
: |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.