MIRA INFORM REPORT

 

 

Report Date :

23.03.2013

 

IDENTIFICATION DETAILS

 

Name :

INDIAN TIMBER PRODUCTS PRIVATE LIMITED

 

 

Registered Office :

Survey No.55/A, Annaram Village,Hyderabad Narsapur Road 502313, Andra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

27.10.1986

 

 

Com. Reg. No.:

00-6888

 

 

Capital Investment / Paid-up Capital :

Rs.9.480 Millions

 

 

CIN No.:

[Company Identification No.]

U20230AP1986PTC006888

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDI00949E

 

 

PAN No.:

[Permanent Account No.]

AAAC1614OC

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers of ISI marked ITP Flush Doors, Paneldoors, Plywood, LVI, Black Boards, Form Works, and Pallets.

 

 

No. of Employees :

220 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

    B (33)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 54548

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with slight 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

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 is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION PARTED BY

 

Name :

Mr. Chiranjiv Babu

Designation :

Accountant

Contact No.:

91-9989488060

Date :

04.03.2013

 

 

LOCATIONS

 

Registered Office/Factory :

Survey No.55/A, Annaram Village,Hyderabad Narsapur Road 502313, Andra Pradesh, India

Tel. No.:

91-8458-275333

Fax No.:

91-8453-275332

E-Mail :

itpdoors@gmail.com

Website :

www.indiantimber.com

Area :

1.17acre

Location :

Owned

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Srinivas Sunkara

Designation :

Managing Director

Address :

Flat No. 202, Padmaja Courts, 2 Srinagar Colony, Hyderabad – 500 075, Andhra Pradesh, India

Mobile No.:

91-9849019044

Date of Birth/Age :

30.07.1964

Date of Appointment :

01.04.1999

Qualification :

BE

DIN No.:

00194094

 

 

Name :

Mr. Sivaramakrishna Sunkara

Designation :

Director

Address :

Gayathri Lane, RTC Colony, Plot No. 9, Vijayawada, Krishna, Andhra Pradesh, India

Date of Birth/Age :

07.11.1937

Date of Appointment :

01.04.1999

Qualification :

SSC

DIN No.:

00364467

 

 

Name :

Mr. Raj Kumar Sunkara

Designation :

Director

Address :

Gayathri Lane, RTC Colony, Plot No. 9, Vijayawada, Krishna, Andhra Pradesh, India

Date of Birth/Age :

08.09.1967

Date of Appointment :

01.04.1999

Qualification:

11th (F.Y.)

DIN No.:

00380672

 

 

KEY EXECUTIVES

 

Name :

Mr. Chiranjiv Babu

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders

 

No. of Shares

Sunkara Srinivas

 

253500

Sunkara Sivarama Krishna

 

174500

Sunkara Kasturi

 

4500

Sunkara Anil Kumar

 

256500

Sunkara Raj Kumar

 

254000

Sunkara Rohini

 

5000

Total

 

948000

 

AS ON 29.09.2012

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of ISI marked ITP Flush Doors, Paneldoors, Plywood, LVI, Black Boards, Form Works, and Pallets.

 

 

Imports :

 

Products :

  • Raw Material
  • Machinery

Countries :

  • China
  • Singapore
  • Turkey

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Suppliers :

Sri Vishakha Timbers and Saw Mills, Hyderabad

 

 

Customers :

Global Entrepolis Private Limited, Vishakhapatnam

 

 

No. of Employees :

220 (Approximately)

 

 

Bankers :

Andhra Bank

Bala nagar Branch, Hyderabad – 500 037, Andhra Pradesh, India

E-Mail: bmhyd057@andhrabank.co.in

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Term Loan from Andhra Bank

(Secured by first charge on entire machinery and personal Guarantee of Directors of the company)

0.298

 

 

 

0.883

HDFC Car Loans

0.347

0.149

Working capital loans - From Banks *

Open Cash Credit from Andhra Bank

10.124

8.034

TOTAL

10.769

9.066

 

Open Cash Credit from Andhra Bank is secured by Hypothecation of Raw Materials, work-in-progress. Finished Goods and book c and a first, charge on fixed assets and further guaranteed by the Directors of the Company in their personal capacity

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Term Loans - Others

 

 

From Directors

6.586

5.786

From Others

0.894

0.894

TOTAL

7.480

6.6880

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Pavuluri and Company

Chartered Accountant

Address :

#105,1st Block,1st Floor, Divya Shakti Complex Ameerpet Hyderabad 500016 Andhra Pradesh, India

 

 

Associates/Subsidiaries :

NA

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1000000

Equity Shares

Rs.10/-

Rs.10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

948000

Equity Shares

Rs.10/-

Rs.9.480 Millions

 

 

 

 

 

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend, in the event of liquidation, the equity shareholders are eligible Company receive the remaining assets of the Company, after distribution of a)! preferential amounts, in proportion of their shareholding.


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

9.480

9.480

9.480

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4.157

3.780

3.506

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

13.637

13.260

12.986

LOAN FUNDS

 

 

 

1] Secured Loans

10.769

9.066

7.186

2] Unsecured Loans

7.480

6.680

6.357

TOTAL BORROWING

18.249

15.746

13.543

DEFERRED TAX LIABILITIES

1.020

0.602

0.699

 

 

 

 

TOTAL

32.906

29.608

27.228

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

13.369

12.746

14.053

Capital work-in-progress

1.684

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

31.007

24.521

23.364

 

Sundry Debtors

13.322

14.064

6.188

 

Cash & Bank Balances

0.204

0.071

0.831

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

1.313

2.976

2.310

Total Current Assets

45.846

41.632

32.693

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

16.280

16.503

15.422

 

Other Current Liabilities

10.990

8.358

3.491

 

Provisions

0.723

0.509

0.605

Total Current Liabilities

27.993

25.370

19.518

Net Current Assets

17.853

16.262

13.175

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

32.906

29.608

27.228

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

70.394

65.221

46.704

 

 

Other Income

0.119

0.020

0.012

 

 

TOTAL                                     (A)

70.513

65.241

46.716

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material Consumed

26.882

25.430

38.104

 

 

Purchases of Traded Goods

26.480

22.493

3.544

 

 

Employee Benefit Expenses

3.732

3.296

2.937

 

 

Changes in Inventories of finished goods Work in Progress and stock in trade

(5.846)

(1.049)

(2.590)

 

 

Other Expenses

13.570

10.633

0.000

 

 

TOTAL                                     (B)

64.818

60.803

41.995

 

 

 

 

 

Less

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

5.695

4.438

4.721

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

2.456

1.927

1.582

 

 

 

 

 

 

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

3.239

2.511

3.139

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.946

2.012

1.971

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

1.293

0.499

1.168

 

 

 

 

 

Less

TAX                                                                  (I)

0.916

0.225

0.436

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                 (J)

0.377

0.274

0.732

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

2.996

2.264

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

3.270

2.996

 

Expected Sales (2012-2013) : Rs.65.000 Millions

 

The above information has been parted by Mr. Chiranjiv Babu (Mr. Chiranjeev Babu)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.53

0.42

1.57

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.84

0.76

2.50

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.18

0.92

2.50

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.09

0.04

0.09

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.34

1.19

1.04

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.64

1.64

1.67

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

No

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

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U20230AP1986PTC006888

Name of the company

INDIAN TIMBER PRODUCTS PRIVATE LIMITED

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

Sy. No.55/A, Annaram Village, Jinnaram Mandal, Hyderabad – 502313, Andhra Pradesh, India

This form is for

Modification of charge

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

90122103

Type of charge

Immovable property

Book debts

Movable property (not being pledge)

Particular of charge holder

ANDHRA BANK

Nature of instrument creating charge

1.Composite Agreement

2. General Form of Guarantee

3. Sanction Letter

Date of instrument Creating the charge

01/10/2012

Amount secured by the charge

Rs.29.800 Millions

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

Rate of Interest

Base rate 3.75 p.a.14.25% at present.

 

Terms of Repayment

Cash Credit Renewable Every Year.

FLC :  90 days

 

Margin

Working Capital:25% on stocks and 50% on Book Debts below 90 days. Sub limit against book debts restricted to 50% of the limit.

 

Extent and Operation of the charge

Primary Security:

OCC: Hypothecation of Raw Material, work in progress, finished goods and book debts.

Term Loan:Hypothecation of Plant and Machinery.

CBP(Fresh): Cheques in the name of Company drawn by third parties, DDs.

 

Guarantors: 1. Mr.S.Sivarama Krishna, 2. Mr.S.Srinivas, 3.Mr.S.Anil Kumar and 4. Mr.S.Raj Kumar.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

EM of Factory and Building of company admeasuring Ac 1 Guntas 17.50 and 200 Sq Yds of Land situated in Sy.No.54 and 55/A Annaram Village, Jinnaram (M) Medak Dist.A.P Plant and Machinery.

Charge on existing plant and machinery less Term Loan Liability.

EM of Open Plot with Ac Sheet rooms bearing N0.424, Road No.9, situated at Sy No.33, 34D,35P and 36 to 39, at Sarojini Naidu Nagar, Ravindra Co Op Housing Socieity, Guttalabegumpet Vil Serilingampally,

Date of instrument modifying the charge

22/06/2011

Particulars of the present modification

OCC limits increased from Rs.10.000 Millions to Rs.12.500 Millions and there is no change in the existing Term Loan II of Rs.2.300 Millions, CBP is Rs.0.500 Million (sub-limits to OCC). Additional FLC of Rs.5.000 Millions and Term Loan III Fresh of Rs.100.00 Lakhs. Present Total Limits are Rs.29.800 Millions.

 

FIXED ASSETS:

 

  • Land
  • Building
  • Borewell
  • Plant and Equipment
  • Vehicles
  • Air Conditioner
  • Office Equipment
  • 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 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.54.33

UK Pound

1

Rs.82.55

Euro

1

Rs.70.10

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SDA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

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

3

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

33

 

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.