MIRA
INFORM REPORT
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Report Date : |
01.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
R R LEATHER PRODUCTS PRIVATE LIMITED |
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Registered Office : |
214, SIDCO Industrial Estate, Ambattur, Chennai – 600 098, Tamilnadu, India. |
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Date of Incorporation : |
05.01.1988 |
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Com. Reg. No.: |
18-15254 |
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CIN No.: [Company
Identification No.] |
U18209TN1988PTC015254 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
CHER06518B |
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PAN No.: [Permanent Account
No.] |
AAACR3674K |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturers, Importers and Exporters of Leather Garments. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 225000 |
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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 a well established and reputed company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
214, SIDCO Industrial Estate, Ambattur, Chennai – 600 098, Tamilnadu, India. |
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Tel. No.: |
91-44-26252472/26254353/26253203 |
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Fax No.: |
91-44-26529157/23740867/24804867 |
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E-Mail : |
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Website : |
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Area : |
6000 sq.fts |
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Location : |
Rented |
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Corporate Office : |
18A, III, Railway Colony, Third Street, Vada Agraharam, Aminijakarai, Chennai – 600 029, Tamilnadu, India. |
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Tel. No.: |
91-44-23740941 / 23741312 / 2484867 / 24848411 |
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Fax No.: |
91-44-23740867/24804867 |
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Area : |
5000 sq.fts. |
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Location : |
Owned |
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Factory 1 : |
214, SIDCO Industrial Estate, Ambattur, Chennai – 600 098, Tamilnadu, India. |
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Tel. No.: |
91-44-26252472/26254353/26253203 |
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Fax No.: |
91-44-26529157/23740867/24804867 |
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E-Mail : |
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Website : |
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Area : |
6000 sq. ft. |
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Location : |
Rented |
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Branches : |
Located at: 56/3, MGR Road, Kalakshetra Colony, Chennai - 600 090, Tamilnadu |
DIRECTORS
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Name : |
Mrs. Revathi Roy |
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Designation : |
Managing Director |
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Address : |
35 A, Arundale
Beach Road, Kalakshetra Colony, Besant Nagar, Chennai - 600 090, Tamilnadu |
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Date of Birth/Age : |
18th
November, 1953 |
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Name : |
Mr. Mohan Roy |
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Designation : |
Director |
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Address : |
35 A, Arundale Beach
Road, Kalakshetra Colony, Besant Nagar,
Chennai - 600 090, Tamilnadu |
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Date of Birth/Age : |
6th
January, 1949 |
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Experience : |
About 25 years |
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Name : |
Mr. Sathya
Narayanan |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mrs. Revathi Roy |
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33750 |
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Mr. Mohan Roy |
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16250 |
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Total |
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50000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Importers and Exporters of Leather Garments. |
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Products : |
Leather Germents |
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Exports to : |
Europe, Japan, Italy, Sweden, France, UK, Germany and USA. |
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Imports from : |
New Zealand, UK, Kenya, Saudi Arabia, Jordan and Germany. |
PRODUCTION STATUS
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Particulars |
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Unit |
Actual Production |
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Leather Garments |
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Pieces |
104419 |
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Finished Leather |
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sq. fts. |
4594165 |
GENERAL INFORMATION
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No. of Employees : |
235 |
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Bankers : |
v State Bank of Travancore, Chennai Main Branch, Esplanade, Chennai - 600 108, Tamilnadu, India v State Bank of Travancore Commercial Branch, Kilpauk, Chennai- 600 010, Tamilnadu, India |
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Facilities : |
The company is reported to enjoy some facilities from its banker. |
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Banking Relations
: |
Good |
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Auditors : |
N C S Raghavan and Company Chartered Accountants 27 Vyalikaran, Bangalore- 560 003, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs. 100/- each |
Rs. 100.000 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs. 100/- each |
Rs. 5.000 million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
5.000 |
5.000 |
5.000 |
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2] Share Application Money |
5.000 |
5.000 |
0.000 |
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3] Reserves & Surplus |
43.348 |
26.615 |
18.103 |
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NETWORTH
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53.348 |
36.615 |
23.103 |
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LOAN FUNDS |
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1] Secured Loans |
55.830 |
49.790 |
36.603 |
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2] Unsecured Loans |
3.619 |
2.088 |
9.102 |
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TOTAL BORROWING
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59.449 |
51.878 |
45.705 |
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DEFERRED TAX LIABILITIES |
0.699 |
0.816 |
0.000 |
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TOTAL
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113.496 |
89.309 |
68.808 |
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APPLICATION OF
FUNDS
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FIXED ASSETS [Net
Block]
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10.973 |
10.484 |
10.922 |
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Capital
work-in-progress
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-- |
-- |
-- |
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INVESTMENT
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9.471 |
1.638 |
0.003 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
1.090 |
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CURRENT ASSETS,
LOANS & ADVANCES
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Inventories
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102.224
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85.590 |
74.990 |
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Sundry Debtors
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30.776
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35.069 |
23.197 |
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Cash & Bank
Balances
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1.370
|
0.516 |
3.939 |
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Other Current
Assets
|
0.000
|
0.000 |
0.145 |
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Loans &
Advances
|
25.060
|
9.325 |
4.878 |
Total
Current Assets
|
159.430
|
130.500 |
107.149 |
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Less : CURRENT LIABILITIES & PROVISIONS
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67.090
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54.393 |
50.356 |
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Total
Current Liabilities
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67.090
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54.393 |
50.356 |
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Net Current Assets
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92.340
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76.107 |
56.793 |
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MISCELLANEOUS
EXPENSES
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0.712 |
1.080 |
0.000 |
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TOTAL
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113.496 |
89.309 |
68.808 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
Sales Turnover
[including other income]
|
350.179 |
352.356 |
343.945 |
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Profit/(Loss)
Before Tax
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17.430 |
10.173 |
9.010 |
Provision for
Taxation
|
0.699 |
0.930 |
0.251 |
Profit/(Loss) After
Tax
|
16.731 |
9.243 |
8.759 |
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Export Value
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290.279 |
295.904 |
299.986 |
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Import Value
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18.484 |
158.164 |
15.161 |
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Total Expenditure
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332.748 |
342.182 |
334.935 |
KEY RATIOS
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PARTICULARS |
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31.03.2004 |
31.03.2003 |
31.03.2002 |
PAT / Total Income
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(%)
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4.77
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2.62 |
2.54 |
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Net Profit Margin
(PBT/Sales) |
(%) |
4.97
|
2.88 |
2.62 |
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Return on Total
Assets
(PBT/Total Assets} |
(%) |
9.69
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7.13 |
7.56 |
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Return on
Investment (ROI)
(PBT/Networth) |
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0.32
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0.27 |
0.39 |
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Debt Equity Ratio
(Total Liability/Networth) |
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3.38
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3.92 |
5.16 |
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Current Ratio
(Current Asset/Current Liability) |
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2.37
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2.40 |
2.12 |
LOCAL AGENCY
FURTHER INFORMATION
PROFILE
The Company, was formed in the year 1988.Their main business is manufacturing leather garments for export. They have manufacturing units in Chennai with an excellent infrastructure and a team of experienced professionals and workmen and export about 1,44,000 garments in a year.
The company was promoted by Mrs. Revathi Roy and Mr.Mohan Roy. Mr.Mohan has about 25 years experience in the leather industry in the manufacturing and marketing functions.He is also involved in the marketing of skins and hides on behalf of producers from several parts of the world. He heads the agency services division of the company and guides the leather procurement and raw materials processing functions for their company.
Mrs. Roy, who is the Managing Director of their company, has considerable hands-on working experience in leather industry, especially in designing leather garments. Their company is primarily under her management. She looks after the functions of marketing, customer relations, products development, production, finance and administration. She is assisted by a team of senior professionals.
It also acts as indenting agents of imported hides and skins for New Zealand and UK.
The company had manufacturing units in Chennai with an excellent infrastructure and a team of experienced professionals and workmen and export about 144000 garments during the year under report.
The company is a Registered Small Scale Industry.
During the year under report, the company catered to well known brands in America including LIZ CLAIBORNE, TODAY'S MAN, KC COLLECTIONS, NICOLE MILLER, POPULER CLUB and BEST OF NATURE.
Infrastructures
They have installed on their 3 premises adequate equipment to cut a total of about 12,000 garments per month ( 480 garments a day ).
They have also installed 52 stitching machines that can stitch about 4,000 garments a month (160 garments a day) on a single shift basis.
In addition, their 3 dedicated sub-contractors have installed a total of 100 stitching machines with a capacity to stitch 8,000 garments a month ( 320 garments a day ).
The company's products consists of high value garments in leather imported from New Zealand to the lower-end garments made from domestic sheep nappa.
Apart from New Zealand lamb, they also have a wide experienced in tanning leather from various origins, i. e. UK domestic lamb, Kenyan, Saudi and Jordanian sheep and German and Ukrainian cow.
The specification of each product, as agreed with the customer is documented and communicated to all concerned. Quality is ensured through continuous monitoring at each stage and if any corrections are to be made they are carried out before the garments are allowed to pass on the next stage. For this purpose, the company has appointed experienced quality inspectors to ensure that the output is monitored and controlled at every stage.
It sells its garments in very reputed stores in the USA and ALDI, Germany.
Tannary
The company has 2 tanning facilities in Chennai:
The tannery has technical know-how and the experienced required for controlling the tanning process for that the process takes into account the special characteristics of each products thereby ensuring high value addition.
They believe that quality consciousness is something that
has to be ingrained in an organization for it to be the upper most in employees'
mind. Therefore, through constant emphasis they inculcate the consciousness in
their employees.
The company had installed on their 3 premises adequate equipment to cut a total of about 12000 sq. fts. garments per months (480 garments a day)
The company had also installed 52 stitching machines that can stitch about 4000 garments a month (160 garments a day) on a single shift basis.
In addition, their 3 dedicated sub-contractors have installed a total of 100 stitching machines with a capacity to stitch 8000 garments a months (320 garments a day)
Today, the company is recognised as one of the largest importers and producers of New Zealand Lamb nappa leathers in this part of the world.
Markets
They have been exporting to countries like Japan, Italy, Sweden, France, & U.K. The majority of their exports have been to Germany and the USA.
Their exports for the financial year ending March 99 have been US$ 5 million. This works out to around 90, 000 garments per year.
The company is in trade terms with:
v Boston Traders
v London Fog
v Bill Blass
v Angelo Litrico
v Yessica
v Westbury
v Alexander Julian
v Claiborne Mens
v Balaji Enterprises
v Konark International
v Laxmaa Enterprises
In views of strict adherence to quality expectations of the customer, their products are well accepted in the international market. They believe in building long-term relationships and are willing to undertake any development work that is required to meet the customers’ needs. Their entire working environment is built around customer satisfaction.
The company's fixed assets of important value include land & buildings, plant & machinery, electrical fittings, office equipments, furniture & fittings and vehicles.
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.43.59 |
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UK Pound |
1 |
Rs.85.53 |
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Euro |
1 |
Rs.58.14 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
47 |
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 |
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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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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