MIRA INFORM REPORT
|
Report Date : |
04.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
GOOD
LEATHER SHOES PRIVATE LIMITED |
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Registered Office : |
47, Thiruvengadam Street,
Periamet, Chennai – 600003, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.08.1994 |
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Com. Reg. No.: |
18-28398 |
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CIN No.: [Company Identification No.] |
U1920TN1994PTC028398 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CHEG05011G |
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Legal Form : |
Private limited liability company |
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Line of Business : |
Manufacturer, Exporter and
Importer of Cow and Cow Calf Finished Leather, Leather Shoe Uppers, Leather
Footwear, etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Maximum Credit Limit : |
USD 125000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having
fine track records. Directors are reported as experienced, respectable and
having substantial means of their own. Their trade relations are fair.
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
|
Registered/Administrative
Office : |
47, Thiruvengadam Street,
Periamet, Chennai – 600003, Tamil Nadu, India |
|
Tel. No.: |
91-44-25368090/5365955/5380512/25611255/25611090 |
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Fax No.: |
91-44-25380512/25610512 |
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E-Mail : |
goodledr@md4.vsnl.net.in |
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Website : |
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Area : |
Owned
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Factory 1 : |
49, Goparasanallur,
Puliampedu, Noombal Post, Chennai – 600077, Tamil Nadu, India Tel. No.
91-44-25380512/26272759/26496310 158, Thiruneermalai Road,
Chrompet, Chennai – 600044, Tamil Nadu, India Tel. No. 91-44-22412727 Fax No. 91-44-25380512 No.
702/6, M. B. T. Road Cross, Rainpet Tamil Nadu- Tannery |
DIRECTORS
|
Name : |
Mr.
K.E. Ramaswamy Naidu |
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Designation : |
Director |
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Date of Birth/Age : |
15.12.1924 |
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Address : |
34, Second East Main Road,
Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. R. Vijayan |
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Designation : |
Managing Director |
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Date of Birth/Age : |
01.06.1953 |
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Address : |
34, Second East Main Road,
Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. R. Babu |
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Designation : |
Director |
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Date of Birth/Age : |
16.03.1969 |
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Address : |
34, Second East Main Road,
Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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|
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Name : |
Mr. R. Sekaran |
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Designation : |
Director |
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Date of Birth/Age : |
28.05.1960 |
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Date of Appointment : |
24.08.1994 |
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Address : |
34, Second East Main Road,
Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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|
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Name : |
Mr. R. Perumal |
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Designation : |
Director |
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Date of Birth/Age : |
22.03.1962 |
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Address : |
34, Second East Main Road,
Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. R. Munikannan |
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Designation : |
Director |
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Date of Birth/Age : |
28.05.1970 |
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Address : |
34, Second East Main Road,
Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr.
K. Govinda Raju |
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Designation : |
Director |
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Date of Birth/Age : |
01.07.1946 |
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Address : |
34,
Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr. K. E. Ramaswamy Naidu |
1000 |
|
Mr. K. R. Vijayan |
1000 |
|
Mr. K. R. Babu |
600 |
|
Mr. R. Sekaran |
600 |
|
Mr. R. Perumal |
600 |
|
Mr. K. R. Munikannan |
600 |
|
Mr. K. Govinda Raju |
600 |
|
Total |
5000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter and
Importer of Cow and Cow Calf Finished Leather, Leather Shoe Uppers, Leather
Footwear, etc. |
GENERAL INFORMATION
|
Customers : |
Wholesalers and Retailers |
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No. of Employees : |
175
persons -- 20 persons in office, 5 persons in branch and 150 persons in
factory |
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Bankers : |
State Bank of India Commercial
Branch, 1st Floor, Palar Towers, Walajapet- 632513, Tamilnadu,
India |
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Banking Relations : |
Satisfactory
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Auditors : |
K. V. Chandramouli and
Company, Chartered Accountants, 36,
Thennamaram Street, Vellore – 632001, Tamil Nadu, India |
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Associates : |
Splendid
Leather Company (SLC) Line
of business : Processing and Export of Goat kid Finished Leather Venkat
Shoes Private Limited (VSPL) 47, Thiruvengadam Street,
Periamet, Chennai – 600003, Tamil
Nadu, India Line
of business : Manufacture and Export of Shoe Uppers Good
Leather Company (GLC) Line
of Business : Processing and Export of Cow & Cow Calf Finished Leather
Line
of Business : Processing and Export of Goat kid Finished Leather |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000 |
Equity Shares |
Rs.100/- each |
Rs. 0.500 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
197500 |
Equity Shares |
Rs.100/- each |
Rs. 19.750 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
19.750 |
0.500 |
0.500 |
|
|
2] Reserves & Surplus |
14.930 |
27.863 |
0.109 |
|
|
4) Profit and Loss |
0.000 |
0.000 |
22.798 |
|
NETWORTH
|
34.680 |
28.363 |
23.407 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
78.863 |
29.323 |
15.223 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
78.863 |
29.323 |
15.223 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
TOTAL
|
113.543 |
57.686 |
38.630 |
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APPLICATION OF FUNDS
|
|
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|
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FIXED ASSETS [Net Block]
|
31.292 |
10.647 |
6.772 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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INVESTMENT
|
2.723 |
1.859 |
2.503 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
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|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
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Inventories
|
0.000 |
0.000 |
18.225 |
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|
Sundry Debtors
|
0.000 |
0.000 |
22.858 |
|
|
Cash & Bank Balances
|
0.000 |
0.000 |
1.819 |
|
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Other Current Assets
|
139.919 |
67.557 |
3.734 |
|
|
Loans & Advances
|
0.000 |
0.000 |
0.176 |
Total Current Assets
|
139.919 |
67.557 |
46.812 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
60.391 |
22.377 |
0.000 |
|
|
Creditors
|
0.000 |
0.000 |
15.468 |
|
|
Provisions
|
0.000 |
0.000 |
1.989 |
Total Current Liabilities
|
60.391 |
22.377 |
17.457 |
|
Net Current
Assets
|
79.528 |
45.180 |
29.355 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
113.543 |
57.686 |
38.630 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
515.329 |
296.422 |
130.995 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
6.317 |
4.954 |
4.438 |
Provision for Taxation
|
-- |
-- |
-- |
Profit/(Loss) After Tax
|
6.317 |
4.954 |
4.438 |
|
|
|
|
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Export Value
|
N.A. |
N.A. |
102.183 |
|
|
|
|
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Total Expenditure
|
509.012 |
291.467 |
126.558 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
1.22
|
1.67
|
0.003
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
1.22
|
1.67
|
4.343
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
3.68
|
6.33
|
7.912
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.18
|
0.17
|
7.287
|
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
4.01
|
1.82
|
53.661
|
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
2.31
|
3.01
|
2.681
|
LOCAL AGENCY FURTHER INFORMATION
It
exports Finished Leather
|
Name of the company |
GOOD LEATHER SHOES PRIVATE LIMITED |
|
Presented By |
Sri
K. R. Vijayan, Managing Director |
|
1) Date and description of
instrument creating the change |
a. Guarantee Agreement for
Small Industrial Advances dated 04.12.2002 granted to M/s. Good Leather
Company |
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Corporate
Guarantee for the financial assistance granted to M/s. Good Leather Company
totaling to Rs. 5.200 millions together with Interest, Costs, Charges and
other expenses which may be debited to the account from time to time. |
|
3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Corporate Guarantee
extended to cover the entire assets of the company valued at Rs. 15.900
millions as on 31.03.2002 |
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
The
guarantee is a continuing guarantee |
|
5) Name and Address and
description of the person entitled to the charge. |
State
Bank of India Commercial
Branch, 1st Floor, Palar Towers, Walajapet – 632513, Vellore
District |
|
6) Date and brief description of instrument
modifying the charge |
Guarantee Agreement for
small industrial advances dated 06.07.2005 |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The corporate guarantee
extended for the revised Credit facilities granted to M/s. Good Leather
Company, by State Bank of India, Commercial Branch, Walajapet, stands revised
upwards from Rs. 5.200 millions to Rs. 9.200 millions |
|
Name of the company |
GOOD LEATHER SHOES PRIVATE LIMITED |
|
Presented By |
Sri
K. R. Vijayan, Managing Director |
|
1) Date and description of
instrument creating the change |
Guarantee agreement for
industrial advances dated 04.12.2002 |
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Facilities
granted to M/s. Good Leather Company totaling to Rs. 14.500 millions |
|
3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Corporate Guarantee
extended to cover the entire assets of the company valued at Rs. 15.900
millions as on 31.03.2002 |
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
The
guarantee is a continuing guarantee |
|
5) Name and Address and
description of the person entitled to the charge. |
State
Bank of India Commercial
Branch, 1st Floor, Palar Towers, Walajapet – 632513, Vellore
District |
|
6) Date and brief description of instrument
modifying the charge |
Guarantee agreement dated
18.07.2003 |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the modification.
|
The corporate guarantee
extended for the revised credit facilities granted to M/s. Good Leather
Company, by State Bank of India, Walajapet, stands revised upwards to Rs.
14.500 millions to Rs. 28.000 millions |
|
Name of the company |
GOOD LEATHER SHOES PRIVATE LIMITED |
||||||||||||||||
|
Presented By |
Sri
K. R. Vijayan, Managing Director |
||||||||||||||||
|
1) Date and description of
instrument creating the change |
General agreement for the
grant of small industrial advances and hypothecation of movables, book debts
and other assets dated 11.09.2003 Agreement for the grant of
Small Industrial Advances dated 11.09.2003 Guarantee agreement for
industrial advances dated 11.09.2003 |
||||||||||||||||
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2) Amount secured by the
charge/amount owing on the securities of charge |
|
||||||||||||||||
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3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Primary Security a. Export Packing Credit pledge of raw materials,
stock in process, finished goods, book debts, consumable stores and other
current assets b. Foreign Bill Negotiation Hypothecation of exports
receivables covered by the documents of title to goods of the bills
discounted/purchased/negotiated Pledge of raw materials,
stock in process, finished goods, book debts, consumable stores and spares
and other current assets COLLATERAL SECURITY The following properties
belonging to the directors of the company are given as collateral security
for the above mentioned credits : > EM of house property
situated at 34, II East Main Road, Gandhi Nagar, Vellore measuring 2.40 acres > EM of land and
building with godown facility at Sr. No. 585, Door No. 43 to 51, Thiruvalam
Road, Vellore > EM of Residential Plot
No. 25, DTP Lay out 68/1981 West SF No. 364 Pinji Village, Ranipet > EM of Land at S.F. No.
85-1 C/2, 85-1E/1, 85-1D/2, M.B.T. Road, Thiruvalam Road, Thiruvalam Road,
Vellore > EM of Land abd
Building at 702/6B, M.B.T. Road, Cross, Ranipet GUARANTEE Personal guarantee of all
the directors Corporate guarantee of Good
Leather Company Corporate Guarantee of
Splendid Leather Company |
||||||||||||||||
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
Periodicity
of Sanction : 12 months Margin
: 25% Other
terms and conditions as specified in Annexure ‘A’ of Sanction Letter given by
the State Bank of India |
||||||||||||||||
|
5) Name and Address and
description of the person entitled to the charge. |
State
Bank of India Commercial
Branch, 1st Floor, Palar Towers, Walajapet – 632513, Vellore
District |
||||||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
Not Applicable |
||||||||||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
Not Applicable |
WEBSITE
DETAILS
Good Leather Company, the Flagship
Firm, was found in May 1988, Honest and Straight forward articulation of
the founder family helped
Set a clear 'vision'.
Commitment, dedication and involvement in work has been the key to their slow and steady
growth.
They Offer
High quality products. Diverse and
increasing product range. Prompt delivery. Customer satisfaction.
Products
Good
Leather Company: Processors of Cow Hide and Cow Calf.
Splendid
Leather Company: Processors of Cow Hide and Cow Calf.
Good
Leather Shoes Private Limited: Manufacturers of Leather
Shoe Uppers and .
Venkat
Shoes Private Limited : Manufacturers
of Leather Shoe Uppers.
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.44.23 |
|
UK
Pound |
1 |
Rs.86.91 |
|
Euro |
1 |
Rs.58.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |