MIRA INFORM REPORT
|
Report Date : |
18th May, 2006 |
IDENTIFICATION DETAILS
|
Name : |
OXFORD
TANNERS |
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|
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Registered Office : |
93/4,
Karaya Road, Kolkata – 700 019, West Bengal, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1996 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
CALO00633D |
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Legal Form : |
Partnership
Concern with an Unlimited Liability of the Partners |
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Line of Business : |
Manufacturer
and Exporter of Finished Leather, Leather Goods / Garments and Industrial
Leather Hand Gloves. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
-- |
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|
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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Unknown |
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Comments : |
This
report is based on an interview with Mr. Sheikh Abdul Hayee, Managing Partner
of the concern. Market
sources informed that factory is closed since last 3 years. However, Mr.
Sheikh Abdul Hayee claims that entire production has been switched over to
new factory in leather complex. The
concern’s payments are slow and delayed. It
can be considered for your proposed business dealings on safe and secured
trade terms and conditions, initially. |
LOCATIONS
|
Registered Office : |
93/4,
Karaya Road, Kolkata – 700 019, West Bengal |
|
Tel. No.: |
91-33-22875981 |
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Fax No.: |
91-33-22804573 |
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E-Mail : |
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Area : |
2,500
sq. fts. |
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Location : |
Owned |
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|
|
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Factory 1 : |
55/1,
Topsia Road (South), Kolkata – 700 046, West Bengal |
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Tel. No.: |
91-33-23433152 |
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|
[this
factory is closed down since 3 months] |
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Location : |
Owned |
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|
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Factory 2 : |
Plot
No. 567, Zone 1, Calcutta Leather Complex, Karaidanga, Dist. 24 Parganas,
West Bengal |
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Tel. No.: |
91-33-23433152 |
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Area : |
8,000
sq. mtrs. |
|
Location : |
Leased |
PARTNERS
|
Name : |
Mr.
Kamal Ahmed |
|
Designation : |
Partner |
|
Address : |
93/4,
Karaya Road, Kolkata – 700 019, West Bengal, India |
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Year of Birth : |
1960 |
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Qualification : |
Matriculate |
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Experience : |
27
years |
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|
|
|
Name : |
Mr.
Jawed Ahmed |
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Designation : |
Partner
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KEY EXECUTIVES
|
Name : |
Mr.
Shaikh Abdul Hayee |
|
Designation : |
Chief
Executive Officer |
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Address : |
44,
Lower Range, Kolkata – 700 019, West Bengal |
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Year of Birth : |
1960 |
|
Qualification : |
B.
Com. |
|
Experience : |
26
years |
|
Previous Employment : |
Bengal
Tanning Industries – General Manager |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Exporter of Finished Leather, Leather Goods / Garments and Industrial
Leather Hand Gloves. |
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|
|
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Products : |
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Exports to : |
Spain,
Italy, Hong Kong and China |
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Imports from : |
Italy,
France and Singapore |
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Terms : |
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Selling : |
L/C
terms |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Actual Production |
|
Finished Leather |
Sq. fts. |
|
|
1.5 millions / per month |
GENERAL INFORMATION
|
Suppliers : |
Brightchem,
Kolkta Chem
Crown India Limited, Kolkata Elegant
Fashion Fiber Chemicals Limited, Kolkata |
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|
|
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Customers : |
Concesia
Tirrena SpA, Italy Commercial
PMB SL, Spain |
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No. of Employees : |
100
(Office: 5 nos.; Factory: 93 nos.; Others: 2 nos.] |
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Bankers : |
Punjab
National Bank Lyond
Range Branch, 1, R. N. Mukherjee Road, Kolkata – 700 001, West Bengal |
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Facilities : |
Cash
Credit : Rs.20.0 millions |
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Banking Relations : |
Satisfactory |
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Auditors : |
Rehman
& Mondal Chartered
Accountants 9,
Lal Bazar Street, Kolkata – 700 001, West Bengal, India |
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Tel. No.: |
91-33-22107450 |
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|
|
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Memberships : |
Leather
Export Promotion Council |
CAPITAL STRUCTURE
|
Capital Investment : |
|
|
Kamal Ahmed :
|
Rs.
2.310 millions |
|
Jawed Ahmed : |
Rs.
15.935 millions |
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Total : |
Rs.
18.245 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Partners Capital -- Kamal Ahmed -- Jawed Ahmed |
|
2.310 15.935 |
2.460 14.800 |
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NETWORTH
|
|
18.245 |
17.260 |
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|
LOAN FUNDS |
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|
|
|
|
1] Secured Loans |
|
95.141 |
71.767 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL
BORROWING
|
|
95.141 |
71.767 |
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TOTAL
|
|
113.386 |
89.027 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
|
35.171 |
25.569 |
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Capital work-in-progress
|
|
0.000 |
0.000 |
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INVESTMENT
|
|
0.071 |
0.055 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
|
25.065 |
25.627 |
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Sundry Debtors
|
|
118.564 |
108.948 |
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Cash & Bank Balances
|
|
7.298 |
8.155 |
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Other Current Assets
|
|
1.349 |
4.693 |
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Loans & Advances
|
|
44.587 |
28.106 |
Total Current Assets
|
|
196.863 |
175.529 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
|
114.699 |
109.506 |
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Provisions
|
|
4.020 |
2.620 |
Total Current Liabilities
|
|
118.719 |
112.126 |
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Net Current
Assets
|
|
78.144 |
63.403 |
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TOTAL
|
|
113.386 |
89.027 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
370.000 |
385.239 |
304.186 |
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|
|
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Profit/(Loss) Before Tax
|
0.000 |
2.382 |
3.456 |
Provision for Taxation
|
0.000 |
0.000 |
0.950 |
Profit/(Loss) After Tax
|
0.000 |
2.382 |
2.506 |
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Export Value
|
370.000 |
0.000 |
0.000 |
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Total Expenditure
|
0.000 |
381.457 |
300.740 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
|
0.62 |
0.82 |
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Net Profit Margin
(PBT/Sales) |
(%) |
|
0.62 |
1.13 |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
|
1.02 |
1.72 |
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Return on Investment (ROI)
(PBT/Networth) |
|
|
0.13 |
0.20 |
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Debt Equity Ratio
(Total Liability/Networth) |
|
|
12.72 |
11.65 |
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|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
|
1.66 |
1.56 |
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.45.34 |
|
UK
Pound |
1 |
Rs.85.68 |
|
Euro |
1 |
Rs.58.33 |
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 |
2 |
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--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
23 |
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
|
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |