MIRA
INFORM REPORT
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Report Date : |
13.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
SURI SHOES PRIVATE LIMITED |
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Registered Office : |
117 / Q / 67, Sharda Nagar, Kanpur - 208 025, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.11.1992 |
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Com. Reg. No.: |
20-14872 |
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CIN No.: [Company
Identification No.] |
U19201UP1992PTC014872 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPS00437D |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing of industrial leather, saddlery and harness, bicycle,
saddles, shoe uppers, shoes and leather goods. |
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 700000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having satisfactory track records. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealing
at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
117 / Q / 67, Sharda Nagar, Kanpur - 208 025, Uttar
Pradesh, INDIA. |
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Tel. No.: |
91 - 512 - 2581155 / 2581177 / 2581616 |
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Fax No.: |
91 - 512 – 2581133 / 2583181 |
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E-Mail : |
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Website : |
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Area : |
41000 sq. fts. |
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Location : |
Rented |
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Overseas Office |
Mayfayre House, London Road, Denington ind. Estate,
Wellingborough, Northants, NN8 2QH, England |
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Tel. No.: |
44-1933-277521 |
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Fax No.: |
44-19933-277511 |
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E-Mail : |
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Factory 1 : |
Kalyanpur – Bithoor Road, Kanpur – 208017, India |
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Tel. No.: |
91-512-2572121, 2572256 |
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Fax No.: |
91-512-2572122 |
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E-Mail : |
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Factory 2 : |
S.S. Leather, A-16, Sector – 57, Noida, India |
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Tel. No.: |
91-120-2586101-03 |
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Fax No.: |
91-120-2585836 |
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E-Mail : |
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Branches : |
Located at Delhi |
DIRECTORS
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Name : |
Mr.Rajan Suri |
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Designation : |
Director |
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Address : |
113 / 38, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh , India |
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Date of Birth/Age : |
12-12-1956 |
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Date of Appointment : |
01/04/2006 |
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Other Directorship : |
Cushy Shoes Private Limited Managing Director U1920UP1991PTC013505 Harsh Fashion Private Limited Director U18101DL1998PTL094730 |
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Name : |
Mr.Rakesh Suri |
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Designation : |
Managing director |
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Address : |
113 / 38, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh , India |
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Name : |
Mrs. Amita Suri |
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Designation : |
Director |
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Address : |
113 / 38, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh , India |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of industrial leather, saddlery and harness, bicycle, saddles,
shoe uppers, shoes and leather goods |
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Products : |
Ø Shoe Uppers Ø Shoes |
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Exports : |
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Countries : |
England, Italy, France, Germany, Australia and New Zealand. |
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Imports : |
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Products : |
Leather |
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Countries : |
Australia, South America, Taiwan and USA |
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Terms : |
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Purchasing : |
L/C, D/A or D/P terms |
GENERAL
INFORMATION
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No. of Employees : |
176 |
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Bankers : |
Ø State Bank of india,
Phool Bagh Branch, Kanpur, Uttar Pradesh, India Ø Allahabad Bank,
The Mall Road, Civil Lines, Kanpur, Uttar Pradesh, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ram Kumar Gupta & Associates Chartered Accountants |
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Address : |
Commerce Centre, IV Floor, 14/145, Chunniganj, Kanpur – 208 001, Uttar
Pradesh |
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Associates/Subsidiaries : |
Ø Cushy Shoes
Private Limited - Importers and traders of leather Ø S. S. Leathers - Manufacturers of ladies
leather shoes |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1.500.000 |
Equity Shares |
Rs. 10/- Each |
Rs. 15.000 Milions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,450,000 |
Equity Shares |
Rs. 10/- Each |
Rs.14.500 Milions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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14.500 |
14.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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162.417 |
154.854 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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176.917 |
169.354 |
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LOAN FUNDS |
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1] Secured Loans |
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85.495 |
91.353 |
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2] Unsecured Loans |
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0.250 |
0.750 |
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TOTAL BORROWING |
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85.745 |
92.103 |
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DEFERRED TAX LIABILITIES |
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5.291 |
4.997 |
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TOTAL |
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267.953 |
266.454 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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106.654 |
102.483 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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3.676 |
1.620 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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89.548 |
104.234 |
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Sundry Debtors |
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91.478 |
91.948 |
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Cash & Bank Balances |
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2.417 |
3.192 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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45.423 |
42.174 |
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Total
Current Assets |
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228.866 |
241.548 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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49.594 |
61.519 |
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Provisions |
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26.045 |
21.736 |
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Total
Current Liabilities |
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75.639 |
83.255 |
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Net Current Assets |
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153.227 |
158.293 |
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MISCELLANEOUS EXPENSES |
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4.396 |
4.058 |
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TOTAL |
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265.953 |
266.454 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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488.639 |
378.843 |
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Other Income |
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42.356 |
30.672 |
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Total Income |
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530.995 |
409.515 |
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Profit/(Loss) Before Tax |
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24.706 |
19.542 |
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Provision for Taxation |
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8.826 |
7.401 |
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Profit/(Loss) After Tax |
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15.880 |
12.141 |
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Earnings in Foreign Currency : |
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Total Earnings |
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467.260 |
0.000 |
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Imports : |
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Total Imports |
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26.793 |
0.000 |
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Expenditures : |
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Financial Charges |
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9.041 |
7.283 |
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Depreciation & Amortization |
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8.619 |
7.802 |
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Other Expenditure |
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470.969 |
359.803 |
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Total Expenditure |
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488.629 |
374.888 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.99 |
2.96 |
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Net Profit Margin (PBT/Sales) |
(%) |
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5.05 |
5.15 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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16.12 |
12.34 |
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Return on Investment (ROI) (PBT/Networth) |
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0.13 |
0.12 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.42 |
0.49 |
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Current Ratio (Current Asset/Current Liability) |
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3.02 |
2.90 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject has been engaged in the leather products sector for the last
five decades.
The shoe upper division was set up in 1987 by the second generation of
Suri Brothers.
In 1992, the brothers with the technical collaboration of English
manufacturers, ventured into full shoe production.
BUSINESS
Subject is engaged in manufacturing and exporting of leather shoes
uppers and leather shoes out of kid, cow and buffalo leathers for men, ladies
and children.
Subject is the flagship company of the group exporting 100% of its'
products and is a Government of India Recognised Trading House.
Its' manufacturing spread over 3 modern units, 2 in Kanpur and one at
Noida (Delhi).
The product range includes leather shoes, leather sandals and chappals,
leather cum rubber / plastic cloth sandals and chappals made by and or by any
process.
Generic Names of the Principal Products of the company are :
The company is in trade terms with :
Ø Prime Tanning
Company Inc., USA
Ø Esjot Goldenberg,
France
Ø Pacific Leather
Ø Mayur
Interlinks
As Per Website
The Group
Ø
Company established in 1992.
Ø
Awarded ISO 9001:2000 certification in 2004.
Ø
Flagship company of a group engaged in leather products for
over 4 decades.
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100% exporter of shoe uppers, shoes and leather furnishings.
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Production over 4 factories – 2 in Kanpur & 2 in Noida
(suburb of Delhi).
Ø
Sales ( Estimates for the current year – USD 14.00 million)
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Vertically integrated operations with leased tanning and
knife making facilities.
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Experienced in handling wide ranging raw materials – Heavy
Cows, Indian Cows, Buffalo, Buff Calf, Kid, Sheep and Pig Leathers.
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Access to tanneries specialising in different leathers.
Ø
Leased tannery to finish cow hides being imported from
U.S.A. and Australia.
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Expert handling of various constructions – cemented, stitch
& turns, veldtschon, welted, outstitched, st. Crispino & pvc direct
injection.
Ø
Modern, highly mechanised factories. Audited and accredited
by various European and American companies
Experienced in international business. Wide product range :
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Men |
Casuals, Formal & Safety |
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Ladies |
Casuals, Fashion & Safety |
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Kids |
Casuals |
Ø Product
development - qualified & experienced designers creating on input from
their own U.S. & U.K. offices.
Ø Technical
Support – highly qualified, experienced & dedicated Indian personnel, working
closely with their own English and American technical team as well as sourced
input from Czech Republic.
Ø Ultimo
furnishings - unit manufacturing leather furnishings and furniture, headed
By an experienced Englishman – Jim Hitchen
Ø Q.C.
Systems and Norms – in line with the current international standards.
Ø Their
warehousing and distribution in U.S.A. & U.K.
Ø Computer
literate organisation.
Ø Offering
access to production status to the customers via the web.
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CAPACITIES (MONTHLY) |
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1. |
Unit 1 (Kanpur) |
Shoes |
25,000 Pairs |
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2. |
Unit 2 (Kanpur) |
Shoes |
50,000 Pairs |
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Uppers |
25,000 Pairs |
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3. |
Unit 3 (Noida, Delhi) |
Shoes |
25,000 Pairs |
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4. |
Unit 4 (Noida, Delhi) |
Ultimo Furnishings |
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(Leather Furniture) |
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.42.86 |
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UK Pound |
1 |
Rs.84.75 |
|
Euro |
1 |
Rs.57.71 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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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 |
4 |
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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 |
|
NO |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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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 |
|
45 |
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 |
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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