MIRA
INFORM REPORT
|
Report Date : |
29.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
EURO
FOOTWEAR LIMITED |
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Registered Office : |
417-419 Krishna
Tower, 15/63 Civil Lines, Kanpur – 208 001, 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 : |
03.04.2000 |
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Com. Reg. No.: |
20-25269 |
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CIN No.: [Company
Identification No.] |
U19201UP2000PLC025269 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPE00316B |
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Legal Form : |
Closely held public limited liability
company |
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Line of Business : |
Manufacturers and Exporters of complete shoes and other leather products. |
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
325000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Satisfactory |
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Litigation : |
Clear |
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Comments : |
Although, subject is a new company, it has done well in its first year of its operations. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. General financial position is satisfactory. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
417-419 Krishna
Tower, 15/63 Civil Lines, Kanpur – 208 001, Uttar Pradesh, INDIA. |
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Tel. No.: |
91-512-2210519 / 2210676/ 22305346 |
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Fax No.: |
91-512-2210160/ 22305397 |
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E-Mail : |
anil@eflindia.com, eflindia@satyam.net.in, euroho@eflindia.com |
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Website : |
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Location : |
Owned |
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Factory
1 : |
988, Akrampur Industrial Area, Unnao, Uttar Pradesh |
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Location : |
Owned |
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Factory
2 : |
985-989, Akrampur Industrial Area, Noida, Uttar Pradesh |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Mehboob Rehman |
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Designation : |
Managing Director |
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Address : |
601, Gokul Apartment, 16/16, Civil Lines, Kanpur – 208 001, Uttar Pradesh, India. |
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Date of Birth/Age : |
01.11.1961 |
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Date of Appointment : |
03.04.2000 |
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Other Directorships : |
M.I.
Footwear Components Private Limited S.R.M.
Engineering Private Limited Resham
Roosen India Private Limited |
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Name : |
Mr. Mohammed Khalid Shamshi |
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Designation : |
Director |
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Address : |
7/94-F,Shamsi House, Tilak Nagar, Kanpur, Uttar Pradesh, India. |
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Date of Birth/Age : |
23.04.1976 |
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Date of Appointment : |
03.04.2000 |
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Name : |
Mr. Kuruvila Kuriakose |
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Designation : |
Director |
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Address : |
C-38, Sector 40, Noida, Uttar Pradesh, India. |
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Date of Birth/Age : |
02.06.1950 |
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Date of Appointment : |
03.04.2000 |
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Name : |
Mr.
Anand Kumar Jain |
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Designation : |
Director |
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Address : |
6/38,
Rani Ghat, Purana Kanpur, Kanpur-208002, Uttar Pradesh, India |
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Date of Birth/Age : |
03.12.1956 |
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Date of Appointment : |
01.10.2001 |
KEY EXECUTIVES
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Name
: |
Mr. Zafar Ahmed Khan |
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Designation
: |
Company Secretary |
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Address
: |
16/1, H.A.L. Colony, Kanpur-208007, Uttar Pradesh, India |
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Date
of Birth/Age : |
01.08.1974 |
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Date
of Appointment : |
10.06.2004 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
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Mr. Mehboob Rehman |
150000 |
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Mr. Mohammed Khalid Shamshi |
125000 |
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Mr. Kuruvila Kuriakose |
24000 |
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Mr. Rashid Ahmed Mirza |
94000 |
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Mrs. Subia Khalid |
75000 |
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Mrs. Rehana Rashid |
50000 |
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Mr. Irshad Mirza |
83000 |
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Mr. Tauseef Ahmad Mirza |
68000 |
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Mr. Shahid Ahmad Mirza |
75000 |
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Mr. Hussam |
50000 |
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Mrs. Rushda Mehboob |
50000 |
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Mr. Zain Rehman |
40000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of complete shoes and other leather products. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
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Footwear |
Prs. |
Not Applicable |
960000 |
GENERAL
INFORMATION
|
Suppliers : |
Ř
AMS
Narula Labels Private Limited Ř
Anand
Brothers, Kanpur Ř
Cart
‘N’ Box Ř
Enkay
India Rubber Company Private Limited Ř
Indcool
Footwear Ř
Jajmau
Chemicals & Allied Industries Ř
Mayur
Uniquoters Limited Ř
M.H.
Polymers Private Limited Ř
Punch
Leathers Private Limited Ř
Siyaram
Packagers Private Limited Ř
S.M.V.
Cooling Private Limited Ř
Tulip
Elastic Private Limited |
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|
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No. of Employees : |
164 |
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Bankers : |
Ř State Bank of India, Overseas Branch, Kanpur, Uttar Pradesh, India Ř Canara Bank, Overseas Branch, Kanpur, Uttar Pradesh |
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Banking Relations : |
Satisfactory |
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Auditors : |
Anil Parikh & Garg Chartered Accountants 33 Anand Bazar, Swaroop Nagar, Kanpur, Uttar Pradesh – 208 002, India |
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Tel. No.: |
91-2541272 |
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Fax No.: |
91-2548233 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
50,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
10.000 |
10.000 |
10.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
72.520 |
69.735 |
56.179 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
82.520 |
79.735 |
66.179 |
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LOAN FUNDS |
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1] Secured Loans |
24.940 |
29.823 |
15.929 |
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2] Unsecured Loans |
0.000 |
0.000 |
2.541 |
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TOTAL BORROWING |
24.940 |
29.823 |
18.470 |
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DEFERRED TAX LIABILITIES |
13.072 |
11.521 |
8.817 |
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TOTAL |
120.532 |
121.079 |
93.466 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
106.398 |
94.558 |
69.384 |
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Capital work-in-progress |
0.745 |
1.516 |
2.143 |
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INVESTMENT |
0.144 |
0.144 |
0.144 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
28.187
|
35.728
|
20.633 |
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Sundry Debtors |
28.312
|
25.978
|
3.213 |
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Cash & Bank Balances |
0.935
|
0.090
|
2.813 |
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Other Current Assets |
1.061
|
2.765
|
6.586 |
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Loans & Advances |
6.839
|
12.015
|
8.656 |
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Total Current Assets |
65.334
|
76.576
|
41.901 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
34.337
|
35.513
|
20.115 |
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Provisions |
17.752
|
16.202 |
0.000 |
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Total Current Liabilities |
52.089
|
51.715
|
20.115 |
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Net Current Assets |
13.245
|
24.861
|
21.786 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.009 |
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TOTAL |
120.532 |
121.079 |
93.466 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
276.207 |
302.856 |
224.069 |
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Profit/(Loss)
Before Tax |
22.358 |
35.923 |
31.488 |
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Provision
for Taxation |
8.170 |
16.665 |
11.786 |
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Profit/(Loss)
After Tax |
14.188 |
19.258 |
19.702 |
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Export
Value |
NA |
93.442 |
(165.979) |
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Import
Value |
NA |
23.903 |
(9.064) |
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Total
Expenditure |
253.849 |
266.933 |
192.581 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
5.14
|
6.36 |
8.79 |
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Net
Profit Margin (PBT/Sales) |
(%) |
8.09
|
11.86 |
14.05 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
13.02
|
20.99 |
28.29 |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.45 |
0.47 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
0.93
|
1.02 |
0.58 |
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Current
Ratio (Current
Asset/Current Liability) |
|
1.25
|
1.48 |
2.08 |
LOCAL AGENCY
FURTHER INFORMATION
The production capacity of the company is 480000 pairs of shoes and its production of shoes was 470262 pairs and 1800 sandles during the year under report.
It is in trade terms with :
Ř Anam Leathers Private Limited, Kanpur, Uttar Pradesh
Ř Crescent Leathers Private Limited
The Company’s fixed assets include Land, Building, Plant and Machinery, Tool, Dies Last and Moulds, Office Equipments, Furniture and Fittings and Vehicles
Form
8 Particular for creation or modification of charges
|
Name of the company |
EURO FOOTWEAR LIMITED |
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Presented By |
ZAFAR AHMED KHAN Company Secretary |
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1) Date and description of instrument creating the change |
Agreement of Hypothecation dated 02.07.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.98 millions |
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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 |
Hypothecation of stocks of raw material such as hide, chemicals etc. WIP, finished goods, book debts and receivables. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The rate of interest is chargable as per the internal credit rating and as per the RBI / Banks instructions issued from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India, Overseas Branch, Civil Lines, Kanpur |
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6) Date and brief description of instrument modifying the charge |
Form C1-A (Agreement of loan for overall limits) dated 10.01.2005 Form C.2-A (Agreement of Hypothecation of goods and assets) dated 10.01.2005 Form C5 (Letter regarding the grant of individual limits within the overall limits) dated 10.01.2005 Limits increased from Rs.77.200 millions to Rs.98.000 millions |
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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. |
Equitable mortgage of Land and Building of 988 and ˝ of (986+989) at Chakrampur, Akrampur, Unnao. Other terms and conditions remaining the same. |
Performance of the company :
The
company has achieved a gross income of Rs.302.800 millions as against
Rs.218.600 millions in the previous year registering a growth of 38.52%.
Margins were under pressure due to the continue growth of competition, also
higher amount of depreciation and provision for taxation profit after tax has
shown a reduction of 2.54%
Exports :
During
the period under review export sales of the company Rs.92.200 millions as
against Rs.171.700 millions in the previous year.
Domestic Sales :
The
company has achieved domestic sales of footwear Rs.201.200 millions as against
Rs.30.5 millions in the previous year showing a substantial increase in
domestic sales of the company.
Outlook for the future :
Overall
industrial recovery, both nationally and internationally, has improved the
prospects of company’s products. It may be noted that as they move ahead there
seems to be no sign of radical change in the demand pattern but, however, the
company has to penetrate the domestic market to much extent. Company expects a
flat volume growth with a little positive value growth during the current year.
Further, research and development of new products and cost cutting in the
present scenario will be on the high priority agenda of the company.
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 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 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
53 |
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 |
|