MIRA
INFORM REPORT
|
Report Date : |
30.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BEST
SAFETY PRIVATE LIMITED |
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Registered Office : |
Plot No. B-28, Phase II , MEPZ-SEZ, NH-45, Tambaram, Chennai -
600045 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.02.2002 |
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Com. Reg. No.: |
18-48488 |
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CIN No.: [Company
Identification No.] |
U25209TN2002PTC048488 |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturers, processors, importers, exporters, agents,
stockists of all kinds of Industrial safety items including industrial safety
shoes, helmets, ear safety items, head protection items and individual safety
equipments. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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
250000 |
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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.
Directors are reported as experienced 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 dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
Plot No. B-28, Phase II , MEPZ-SEZ, NH-45, Tambaram, Chennai -
600045, India |
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Tel. No.: |
91-44-22621414 / 30915688 / 22621424 / 22621416 / 22426147 /
22426146 |
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Mobile No.: |
91-9381019813 |
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Fax No.: |
91-44-22621415 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr.
Sandeep Kumar Mall |
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Designation : |
Managing
Director |
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Address : |
G-179,
Sector – 3, Sali Lake City, West Bengal, Kolkata – 700091, West Bengal, India |
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Date of Birth/Age : |
10.01.1975 |
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Date of Appointment : |
21.02.2002 |
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Date of Ceasing : |
25.05.2005 |
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Name : |
Mr.
Sushil Kumar Damani |
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Designation : |
Director
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Address : |
9A Dr.
Naresh Sengupta Sarani, West Bengal, Kolkata – 700026, West Bengal, India |
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Date of Appointment : |
01.06.2005 |
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Name : |
Ms.
Jyoti Prakash Lakhotia |
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Designation : |
Director
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Address : |
Flat
6, Madan Apartment, 9A, 3rd Seward Road, valmiki Nagar,
Thiruvanmiyur, Chennai – 600041, Tamilnadu, India |
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Date of Birth/Age : |
01.03.1973 |
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Date of Appointment : |
30.09.2005 |
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Name : |
Mr.
Madan Gopal Lakhotia |
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Designation : |
Director
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Address : |
CL 53,
Salt Lake City, Kolkata – 700091, West Bengal, India |
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Date of Birth/Age : |
01.09.1935 |
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Date of Appointment : |
30.09.2005 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Sandeep
Mall |
|
9,000 |
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Sushil
Kumar Damani |
|
1,000 |
|
Kadambini
Securities Limited |
|
1,200,000 |
|
Zenfer
Marketing Private Limited |
|
480,000 |
|
Deshnoke
Investments and Holding Private Limited |
|
115,000 |
|
Gold
Mohur Finvest Limited |
|
161,000 |
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Super
Bright Testiles and Finance Private Limited |
|
9,000 |
|
Skunk
Distributors Private Limited |
|
25,000 |
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Total |
|
2,000,000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers, processors, importers, exporters, agents,
stockists of all kinds of Industrial safety items including industrial safety
shoes, helmets, ear safety items, head protection items and individual safety
equipments. |
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Imports from : |
Europe |
GENERAL
INFORMATION
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No. of Employees : |
50 |
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Bankers : |
State
Bank of India Overseas
Branch, Samriddhi Bhawan, 1, Strand Road, Kolkata – 700001 |
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Banking Relations : |
Satisfactory
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Auditors : |
K. R.
Bhansali and Associates Chartered
Accountants No.
21, Parthasarathy Puram Extension, T. Nagar, Chennai – 600017, Tamilnadu,
India |
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Holding Company : |
Kadimini
Securities Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 30.000 Millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2199350 |
Equity
Shares |
Rs. 10/- each |
Rs. 21.994 Millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
21.993 |
20.000 |
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2] Share Application Money |
|
0.117 |
17.235 |
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3] Reserves & Surplus |
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40.194 |
17.040 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
62.304 |
54.275 |
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LOAN FUNDS |
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1] Secured Loans |
|
12.677 |
31.959 |
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2] Unsecured Loans |
|
0.163 |
17.840 |
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TOTAL BORROWING |
|
12.840 |
49.799 |
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DEFERRED TAX LIABILITIES |
|
0.895 |
1.971 |
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TOTAL |
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76.039 |
106.045 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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38.452 |
42.668 |
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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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2.643 |
2.643 |
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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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29.596 |
34.640 |
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Sundry Debtors |
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11.491 |
37.533 |
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Cash & Bank Balances |
|
0.265 |
0.662 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
3.825 |
3.578 |
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Total Current Assets |
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45.177 |
76.413 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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10.244 |
15.851 |
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Provisions |
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0.094 |
0.027 |
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Total Current Liabilities |
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10.338 |
15.878 |
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Net Current Assets |
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34.839 |
60.535 |
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MISCELLANEOUS EXPENSES |
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0.105 |
0.199 |
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TOTAL |
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76.039 |
106.045 |
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KEY
RATIOS
|
PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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0.37 |
1.21 |
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Current
Ratio (Current
Asset/Current Liability) |
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4.37 |
4.81 |
LOCAL AGENCY
FURTHER INFORMATION
Business
To carry
on business of manufacturers, producers, exporters, importers, distributors,
traders, merchants, dealers, manufacturer’s representatives, selling agents,
buying agents, buyers, sellers, wholesalers, retailers, suppliers, and
stockists of all kinds and verities of safety equipments, intruder alarm, fire
alarm, gas based fire suppression systems, access control, perimeter
protection, intrusion systems, access control primeter protection intrusion alarm, surveillance
systems, burglar alarm, closed circuit television, safely home kits, lenses,
monitors, electronics security alarm systems, electronic safes, video door phones, remote etc.
The company manufacture of safety gloves, safety helmets for industrial
purposes. Now, apart from manufacturing the company import all kinds of safety
items like safety shoes, ear safety items, eye safety items, head protection
items and all other industrial safety equipments from Europe. The company are
also engaged in the export of the above items to Europe.
The manufacturing facility is situated in the Madras Export
Processing Zone and hence is eligible for tax subsidies as prescribed by the
Government of India.
A medium sized company whose products are much sought after and
hence the company hopes to improve their turnover within the first 5 years.
The company changed its Registered Office from “36 Verappan
Street, Second Floor, Sowcarpet, Chennai – 600079” to present address.
As Per Website
Best Safety Private Limited was established in the
year 2002. It is a 100% manufacturer exporter of Industrial Safety shoes to the
European market and is located in the Madras Export Processing Zone in Chennai
which is a port city in Southern India.
Best Safety manufactures shoes with both single and dual density directly
injected PU soles complying with EN345 (or IS15298) norms of the European Union
(CE norms). These shoes are made for providing safety in the industrial
environment as per requirement. They can be classified into the following
categories with regard to their specific features:
- SB: Basic
properties, heel energy absorption.
- S1: Basic
properties with steel toe-cap
- S1P: Same as S1
but with steel mid-plate
- S2: Water
resistant Upper with steel toe-cap
- S3: Same as S2
but with steel mid-plate
Their manufacturing capacity is 1 million pairs
annually.
Strengths
- A highly
sophisticated infrastructure using modern techniques.
- High quality of
product using both domestic and imported raw materials
- Availability of
good quality leather locally.
- Fast response
to market requirements
- A management
team with vast experience in the successful set-up and functioning of
other shoes factories.
- A highly
skilled labour force as Chennai is a footwear hub of India.
- Designing and
sampling facilities.
- In-house
testing facilities.
- A low transit
time of 20 days for shipment by sea to Europe, as they are located in
close proximity to the Chennai port.
|
Name of the company |
BEST SAFETY PRIVATE LIMITED |
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Presented By |
The company |
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1) Date and description of instrument creating the change |
Agreement
of hypothecation of goods and assets dated 27.06.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.
49.000 Millions
Both
interchangeable under the overall limit of Rs. 5.000 Millions for working
capital loan. |
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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 |
All
present and future goods book debts and all other movable assets of the
borrower including documents of title to the goods, outstanding moneys
receivables including receivables by way of cash assistance and cash incentives scheme or any other scheme
claims including claims by way of refund of customs duties under the duty
drawback credit scheme or any other scheme bills, invoice documents contracts
insurance policies, guarantees engagements, security investments and right and the present machinery and all future
machinery belonging to or in the possession of under the control of the
borrower wherever lying stored and kept and whether in possession of the
borrower or of the bank or of any third party whether in India or elsewhere
throughout the world by way of first charge. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The
borrower shall not do or allow anything which may prejudice the security and
shall comply with the terms and conditions of the agreements. The
borrower shall pay interest as per SBI / Bank guidelines subject to changes
form time to time Margin
25 %
of Raw materials, stock in progress, finished goods 15 %
of Usance Bills and 10 %
of Bank Guarantee The
terms loan of Rs. 20.000 millions is repayable in 16 quarterly instalments,
out of which first 4 instalments of Rs. 1.000 Millions each second each and 3rd
7 instalments of Rs. 1.350 millions each commencing from 30.06.2003 |
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5) Name and Address and description of the person entitled to the charge. |
State
Bank of India Overseas
Branch Samriddhi
Bhawan 1,
Strand Road, Kolkata – 700001 |
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6) Date and brief description of instrument modifying the charge |
Supplemental
agreement of hypothecation of goods and assets for increase in the overall
limit dated 19.09.2005 Recital
for credit facilities where mortgage by deposit of title deeds is being
created dated 19.09.2005. |
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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. |
By
this modification, the overall limit is enhanced form Rs. 49.000 millions to
Rs. 64.500 Millions with details of credit facilities as specified below :
Export
packing credit limit is fully interchangeable with foreign bills discounting
limit 50 %
of FBD limit is interchangeable with export packing credit limit. SLC as
EPC 100 % Interchangeable with FBD Interest
For
export packing credit limit 3.15 % below SBAR @ 7.10 % p.a. for EPC upto 180
days and 1.50 % below SBAR i.e. @ 8.75 % p.a. for EPC beyond 180 days and
upto 270 days. For
advances against bills sent on collection @ 3% below SBAR i.e. @ 7.25 % p.a.
for advance against receivables upto 90 days and @ 1.50 % below SBAR i.e. @
8.75 % p.a. for EPC beyond 90 days and upto 180 days. For
stand by line of credit 6 months LIBOR with a spread of @ 3.25 % The
rate of interest is subject to change as may be advised by the Bank / RBI
form time to time and on the terms and conditions contained in the said
agreements. Margin
10% of
Raw Materials, stock in process, finished goods and letter of credit Further
additional security has been created by way of equitable mortgage by fresh
deposit of title deeds under section 79 of the transfer of property act, 1882
and within the meaning of sanction of the said act of the properties as
specified in the schedule hereunder to secure repayment of the sum of Rs.
64.500 Millions together with interest commission, discount, costs and
charges and expenses thereon. Schedule of properties Plot
No. B-28, Phase II in MPEZ forming part of survey Nos. 84 & 96 parts
within the village limits of 165, Kadapperi, Tambaram, Chennai under leased deed No. 4533 dated
06.08.2003 Registered as No. 4533 of 2003 on date 06.08.2003 at sub registrar
Tambaram, Chennai Together
with buildings, structure, immovable plant
and machinery which might thereafter by erected or affixed to or
situated on the said immovable properties in favour of the said bank by way
of first charge. All
other terms and conditions continue to remain as before in full force and
effect. |
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.44.27 |
|
UK
Pound |
1 |
Rs.86.71 |
|
Euro |
1 |
Rs.57.13 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 |
|