MIRA
INFORM REPORT
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Report Date : |
10.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
N M ZACKRIAH
& COMPANY |
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Registered Office : |
NMZ House, 67 E V K Sampath Road, Vepery, Chennai – 600 007, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1972 |
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Legal Form : |
Partnership Concern with an Unlimited Limited Liability of
the Partners |
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Line of Business : |
Manufacturers of Finished Leather, Shoe Uppers and Fully
Finished Shoes. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 120000 |
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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 concern having satisfactory track. Trade relations are fair.
Payments are usually correct and as per commitments. The concern can
be considered normal for business dealings at usual trade terms and
conditions. This report is
based on an interview with Mr. Akhar of the concern. |
LOCATIONS
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Registered Office : |
NMZ House, 67 E V K Sampath Road, Vepery, Chennai – 600 007, Tamilnadu, India |
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Tel. No.: |
91-44-26618744 / 26618037 |
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Fax No.: |
91-44-26618467 |
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E-Mail : |
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Website : |
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Area : |
5000 sq. ft. |
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Location : |
Owned |
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Factory\ Tannery: |
Tuhuthipet,
Ambur, Vellur ( Tamilnadu) |
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Area : |
50000 sq. ft. |
PARTNERS
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Name : |
Mr. N. M. Zackriah (Father) |
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Designation : |
Managing Partner |
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Name : |
Mr. M. Jameel (Son) |
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Designation : |
Managing Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Finished Leather, Shoe Uppers and Fully
Finished Shoes. |
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Exports : |
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Products : |
Finished Leather, Leather Shoe Uppers and Full Shoes |
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Countries : |
Denmark, Switzerland, UK, Portugal, Norway, Singapore,
Japan, Australia and Italy |
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Imports : |
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Products : |
Chemicals |
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Countries : |
Spain and Germany |
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Terms : |
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Purchasing : |
Against D/P terms |
GENERAL
INFORMATION
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No. of Employees : |
650 (Group
Employs 2000 Persons) |
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Bankers : |
¨ Standard Chartered Bank Rajaji Salai, Chennai - 600 001, Tamil Nadu, India
¨ Syndicate Bank Main Branch, Armenian Street, Chennai - 600 001, Tamil Nadu,
India |
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Facilities : |
The concern enjoy aggregate facilities of Rs. 80.000
millions among the two banks |
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Banking
Relations : |
Satisfactory |
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Memberships : |
Leather Export Promotion Council Sydenhams Road, Chennai - 600 003, Tamilnadu, India |
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Associates : |
NMZ Industries Private Limited, Chennai, Tamil Nadu, India Aasim Industries Private Limited, Chennai, Tamil Nadu, India NMZ Enterprises, Chennai, Tamil Nadu, India |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 30.000
Millions |
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Borrowed : |
-- |
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Total : |
Rs. 30.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2006 (Estimated) |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
350.000 |
400.000 |
400.000 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
Subject is engaged in as Manufacturers of Finished Leather, Shoe Uppers and Fully Finished Shoes.
It also acts as Exporters of Finished Leather, Shoe Uppers and Fully Finished Shoes.
It is in trade terms with:
¨ Clariant India Limited, 12 Marshalls Road, Chennai - 600 086, Tamil Nadu, India.
¨ BASF India Limited, 46th Cathedral Road, Chennai - 600 086, Tamil Nadu, India.
¨ Rhene Fix GmbH, Ludwogshafen, Germany.
AS PER WEBSITE:
Leather is a high
quality natural material which requires careful, correct processing. NMZ
invests all its expertise, and employs every facility offered by modern
technology, to obtain the desired result. The hides achieve the quality they
deserve.
N M Zackriah & Company, footwear division have commissioned the production of full shoes. The plant is well planned and the envisaged production is 2000 pairs per day.
NMZ began its operation three decades ago. Today it has a place of pride in exporting to various countries all over the world.
NMZ produces only
full chrome cowhides and calves. And exports all types of cow leather, footwear
components and shoes.
There are two shoe
factories and a tannery at Ambur. All these factories are equipped with the most
modern machinery and this along with the stringent quality control measures
employed ensures the product measures up to the toughest international
standards. Another aspect, which is given the highest priority by NMZ, is to
deliver the product on time with no exceptions. Because of these two virtues
NMZ is today a respected name in the leather industry round the globe.
NMZ makes a positive contribution to environmental protection through its extensive use of environment friendly technologies.
Plants have been installed which remove the chrome from effluents and eliminate chemical-related problems such as pollution from sulphides and ph limits. For several years now, mechanical, biological purification has been carried out at a highly efficient, large-scale clarification plants.
Environment friendly leather making is also reflected in the products themselves
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.88 |
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UK Pound |
1 |
Rs.84.22 |
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Euro |
1 |
Rs.57.27 |
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 |
5 |
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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 |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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