MIRA
INFORM REPORT
|
Report Date : |
23.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
PRESIDENCY KID
LEATHER LIMITED |
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Registered Office : |
No. 2165, L
Block, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.09.1972 |
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Com. Reg. No.: |
18-6197 |
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CIN No.: [Company
Identification No.] |
U19122TN1972PLC006197 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEP00245A |
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Legal Form : |
A Closely Held
Public Limited Liability Company |
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Line of Business : |
Manufacturer,
Exporter and Importer of finished leathers a shoe upper. |
RATING & COMMENTS
|
MIRAs Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 1700000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established
company having fine track. Their trade relations are fair. Financial position
is good. Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partner in a medium to long run. |
LOCATIONS
|
Registered
Office : |
No. 2165, L
Block, First Street, 12th Main Road, Anna Nagar West, Chennai
600040, Tamilnadu, India |
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E-Mail : |
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Web Site: |
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Area : |
50,000 sq. ft. |
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Location : |
Owned |
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Corporate
Office : |
476, |
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Tel. No.: |
91-44-26461837 /
53 / 26460782 / 2620105 / 26202564 / 26203704 |
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Fax No.: |
91-44-26205837 /
26201853 |
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E-Mail : |
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Area : |
50,000 sq. ft. |
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Location : |
Owned |
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Factory 1 : |
2, 7th
Main Road, New Colony Chrompet, Chennai 600044 |
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Tel. No.: |
91-44-22235123 |
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Factory 2 : |
2 Dr. R. K.
Nagar, Second |
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Branch : |
Tel. 91-44-26221763
Tel. No. 91-44-22235123 |
DIRECTORS
|
Name : |
Mr. S. Masud Ali
Khan |
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Designation : |
Chairman and
Managing Director |
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Address: |
476, |
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Date of
Birth/Age : |
29.09.1924 |
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Date of
Appointment: |
18.07.1972 |
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Name : |
Dr. Zachria Sait |
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Designation : |
Joint Managing
Director |
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Address: |
E 64, E Block,
Anna Nagar East, Chennai 600 102, |
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Date of
Birth/Age : |
08.02.1950 |
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Date of
Appointment: |
23.03.1990 |
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Name : |
Mr. Mahboob Khan |
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Designation : |
Director |
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Address: |
D 13, Anna Nagar
East, Chennai 600 102, |
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Date of
Birth/Age : |
17.04.1964 |
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Date of
Appointment: |
23.03.1990 |
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Name : |
Mr. Syed Lqbal Ali |
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Designation : |
Director |
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Address: |
Plot No. 1386,
Golden Colony, Mugappair, Chennai 600 050, |
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Date of
Birth/Age : |
31.10.1940 |
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Date of
Appointment: |
01.04.1998 |
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Name : |
Mr. Niaz Ahmed |
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Designation : |
Director |
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Address: |
1017 B, |
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Date of
Birth/Age : |
29.12.1951 |
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Date of
Appointment: |
01.04.1988 |
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Name : |
Mr. Shaffee
Mansur |
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Designation : |
Director |
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Address: |
No. 12, |
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Date of
Birth/Age : |
12.07.1965 |
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Date of
Appointment: |
22.03.1996 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
S. Masud Ali Khan |
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2,256 |
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Dr. Zachria Sait |
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1,200 |
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Mahboob Khan |
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6,480 |
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Husnara Begum |
|
4,632 |
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Nusrath Fathima |
|
5,280 |
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Nuzhath Sultana |
|
1,848 |
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Ahsan Ali Khan |
|
6,480 |
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Total: |
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28,176 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors of relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter
and Importer of finished leathers a shoe upper. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Finished leather |
Pieces |
5000000 p.a. |
500000 p.a. |
|
Shoe leather |
Pairs |
60000 p.a. |
60000 p.a. |
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Footwear leather |
Pairs |
900000 |
450000 |
GENERAL INFORMATION
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No. of Employees : |
330 persons -- 25
persons in office, 5 persons in branch and 300 persons in factory |
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Bankers : |
Syndicate Bank,
No. 69, Chennai Main Branch, 69, |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
V Chartered
Accountants |
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Address : |
Flat No. F2, No.
97 and 98, R K Mutt Road, Mandaveli, Chennai 600028, Tamilnadu, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70,000 |
Equity Shares |
Rs. 1000 each |
Rs 70.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
28,176 |
Equity Shares |
Rs. 1000 each |
Rs 28.176 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 |
28.176 |
28.176 |
28.176 |
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3] Reserves &
Surplus |
412.776 |
411.796 |
395.259 |
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NETWORTH
|
440.952 |
439.972 |
423.435 |
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LOAN FUNDS |
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1] Secured Loans |
453.548 |
452.710 |
368.035 |
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2] Unsecured
Loans |
1.027 |
1.398 |
1.535 |
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TOTAL BORROWING
|
454.575 |
454.108 |
369.570 |
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DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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Provision for Income Tax and
Fringe benefit Tax
|
2.285 |
0.000 |
0.000 |
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TOTAL
|
897.812 |
894.080 |
793.005 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
179.660 |
185.405 |
183.540 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
0.000 |
1.708 |
4.307 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
|
466.856
|
449.410
|
380.230
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Debtors
|
213.197
|
223.611
|
176.726
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Cash & Bank Balance
|
34.249
|
53.592
|
71.369
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Other Current Assets
|
0.000
|
3.173
|
0.000
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Loans & Advances
|
160.872
|
160.303
|
97.641
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Total Current Assets
|
875.174 |
890.089 |
725.966
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities and
Provisions
|
161.423
|
189.725
|
127.411
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Total Current Liabilities
|
161.423 |
189.725 |
127.411 |
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Net Current Assets
|
713.751 |
700.364 |
598.555
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MISCELLANEOUS EXPENSES
|
4.401 |
6.603 |
6.603 |
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TOTAL
|
897.812 |
894.080 |
793.005 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
1130.882 |
1509.314 |
1260.712 |
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Other Income |
53.945 |
84.953 |
94.331 |
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Total Income |
1184.827 |
1594.267 |
1355.043 |
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Profit/(Loss) Before Tax |
3.266 |
18.741 |
[4.033] |
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Provision for Taxation |
1.434 |
2.173 |
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Profit/(Loss) After Tax |
1.832 |
16.568 |
[4.033] |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
1276.965 |
1210.457 |
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Imports : |
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Raw Materials |
NA |
132.527 |
152.340 |
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Others |
NA |
96.048 |
87.148 |
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Total Imports |
NA |
228.575 |
239.488 |
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Expenditures : |
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WIP Finished Goods |
0.000 |
0.000 |
135.314 |
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Manufacturing Expenses |
0.000 |
0.000 |
133.705 |
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Administrative Expenses |
0.000 |
0.000 |
42.240 |
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Selling and Distribution Expenses |
0.000 |
0.000 |
116.527 |
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Raw Material Consumed |
598.336 |
937.991 |
859.726 |
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Consumption of stores and spares parts |
204.328 |
231.196 |
0.000 |
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Increase/(Decrease) in Finished Goods |
1.468 |
32.476 |
0.000 |
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Salaries, Wages, Bonus, etc. |
53.391 |
76.559 |
0.000 |
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Managerial Remuneration |
3.567 |
4.239 |
0.000 |
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Payment to Auditors |
0.115 |
0.117 |
0.000 |
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Interest |
45.608 |
31.559 |
23.962 |
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Insurance Expenses |
1.504 |
1.635 |
0.000 |
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Power & Fuel |
22.284 |
21.913 |
0.000 |
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Depreciation & Amortization |
24.356 |
24.914 |
24.672 |
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Other Expenditure |
226.606 |
212.928 |
199.667 |
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Total Expenditure |
1181.563 |
1575.527 |
1535.813 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
0.15
|
1.04 |
[0.30] |
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Net Profit Margin (PBT/Sales) |
(%) |
0.29
|
1.24 |
[0.32] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.31
|
1.74 |
[0.44] |
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Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.04 |
[0.01] |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.40
|
1.46 |
1.17 |
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Current Ratio (Current Asset/Current Liability) |
|
5.42
|
4.69 |
5.70 |
LOCAL AGENCY FURTHER INFORMATION
The Registered Office of the company has been shifted from 476,
Business
Subject import raw
materials, accessories and export-finished leather, leather shoe uppers
The company
operates under four main divisions which are as under :-
ุ
Finished
Leather Division
ุ
Shoe
Upper Division
ุ
Footwear
Division
ุ
Shoes
for Exports Division
Fixed Assets
Land, Building,
Plant & Machinery, Furniture & Fixture, Electrical Installation,
Vehicles, Office Equipment, Air Conditioner, Generator, Heating System, Tools
& Equipment, Computer & Printer, Air Compressor, Fire Extinguisher,
EPABX, Aqua Pac Model System, Ironing Machine Felt etc.
Bankers Charges
Report as per Registry
|
Name of the company |
PRESIDENCY KID LEATHER LIMITED |
|
Presented By |
Dr. Zackria
Sait, Joint Managing Director |
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1) Date and description of instrument creating the change |
Tannery 15.03.1993 Rs.
90.600 Millions Shoe Division 15.03.1993
Rs. 90.600 Millions |
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2) Amount secured by the charge/amount owing on the securities of charge |
Charge secured
for Rs. 90.600 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
stock in trade of every description, raw materials semi finished goods,
finished goods, chemicals stores / spares, consumables, leather shoe uppers
stored in tannery, shoe upper an footwear divisions. Hypothecation of
machinery installed at tannery and shoe division and extension of mortgage of
land and building of tannery and shoe divisions. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
As per the
Syndicate bank sanction Letter No. 1215/6000/ADV/2005 dated 21/06/2005 |
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5) Name and Address and description of the person entitled to the charge. |
Syndicate Bank 69, Chennai Main, Chennai - 600001 |
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6) Date and brief description of instrument modifying the charge |
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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. |
The present
modification is for the existing credit limits renewed for Rs. 544.476
millions vide Syndicate Bank sanction letter No. 1215/6000/ADV/2005 dated
21/06/2005, in cancellation of the existing limits and are valid upto
31.03.2007 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 Intl
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 companys 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.40.24 |
|
|
1 |
Rs.83.04 |
|
Euro |
1 |
Rs.55.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
This score serves as a reference to assess SCs 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 |
|