MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
DELTA SHOES PRIVATE LIMITED |
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Registered Office : |
15 ¼, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.09.1987 |
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Com. Reg. No.: |
014919 |
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CIN No.: [Company
Identification No.] |
U18209TN1987PTC014919 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHED00497A |
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Legal Form : |
Private Limited Liability company |
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Line of Business : |
Manufacturing and Exporting of Footwear and Footwear
Components such as Full Leather Shoes and Leather Shoe Uppers including Leather
Sandals and Chappals, Leather cum Rubber / Plastic Cloth Sandals and Chappals |
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 287456 |
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Status : |
Satisfactory |
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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 satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms & conditions. |
LOCATIONS
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Registered Office : |
15 ¼, |
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Tel. No.: |
91-44-22523868 |
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Fax No.: |
91-44-22523870 |
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E-Mail : |
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Website : |
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Area : |
2500 Sq.ft |
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Location : |
Owned |
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Factory 1 : |
Farida Prime Tannery, 151/4, Mount Poonamallee High Road, Ramapuram, Chennai, Tamilnadu |
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Tel. No.: |
91-44-22495518, 22495503,22523866/67/68/69 |
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Fax No.: |
91-44-22523870 |
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Area : |
25000 Sq.ft |
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Location : |
Owned |
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DIRECTORS
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Name : |
Mr. M. Rafeeque Ahmed |
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Designation : |
Managing Director |
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Address : |
10, |
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Date of Birth/Age : |
17.09.1947 |
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Name : |
Mr. M. Iqbal Ahmed |
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Designation : |
Director |
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Address : |
10, |
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Date of Birth/Age : |
10.10.1969 |
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Name : |
Mr. M. Rasheed Ahmed |
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Designation : |
Director |
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Address : |
10, |
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Name : |
G. Swaminathan |
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Designation : |
Practising Company Secretary |
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Address : |
A2, Srividya Apartments, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Farida Holdings Limited |
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20,100 |
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Mr. M. Rafeeque Ahmed |
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100 |
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Category |
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Percentage of
Holding |
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Bodies Corporate |
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100.00 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of Footwear and Footwear
Components such as Full Leather Shoes and Leather Shoe Uppers including
Leather Sandals and Chappals, Leather cum Rubber / Plastic Cloth Sandals and Chappals |
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Brand Names : |
“GORETEX” |
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PRODUCTION STATUS
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Particulars |
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Installed Capacity |
Actual Production |
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Licensed capacity shoes |
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10 lakhs pairs per annum |
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Installed capacity shoes |
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3.5 lakhs pairs per annum |
-- |
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Actual production of shoe uppers in 2003-2004 |
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-- |
699019 pairs |
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Actual production of full shoes in 2003-2004 |
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-- |
-- |
GENERAL INFORMATION
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No. of Employees : |
590 |
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Bankers : |
State Bank of Chennai – 600010, Tamilnadu Citibank N.A. No.2, HDFC Bank UTI Bank |
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Facilities : |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name: |
Kalyanasundaram & Company Chartered Accountants |
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Address : |
18, (Old No.22) |
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Associates/Subsidiaries
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Farida Classic Shoes Limited v Farida Prime Tannery Managing Director: Mr.Israr Ahmed Telephone Nos.: 91 044 22522503 and 22522518 Fax No.: 91 044 22522734 E-mail: israr@farida.com Line of Business: TANNERIES: Farida Prime Tannery was established in 1957 at Ambur for SHOE FACTORIES Farida Shoes Pvt Ltd, was established in the year 1976, located at Ambur. Managing Director: Mr. Irshad Ahmed Mecca, Farida Shoes
Pvt Ltd. Telephone No.s: +91 044 28330872, 28330526 Fax No.: +91 044 28330343 E-mail: irshad@farida.com
Line of Business: The factory is involved mainly in full shoe manufacture for exports. This factory is certified with ISO 9002 from BVQI. v INDIA SHOES EXPORT PVT LTD was established in 1979 at Chennai. Managing Director: Mr. Irshad Ahmed Mecca
Telephone No.s: +91 044 22521515, 22521946, 22520710 Fax No.: +91 044 22520358 E-mail: irshad@farida.com Line of Business: This factory manufactures quality cemented and moccasin uppers and shoes for exports. This factory is the first one in the Group to get ISO 9002 Certification from BVQI. v FARIDA CLASSIC SHOES PVT LTD was established in 1981 at Ambur as the first full-fledged shoe factory.
STANFORD SHOES PVT LTD was established in 2002 at Chennai. This factory manufactures full shoes for exports. Managing Director: Mr. Iqbal Ahmed Mecca
151/4, ( Fax No.: +91 044 22523870 E-mail: iqbal@farida.com v KENMORE SHOES PVT LTD was established in 2002 at Chennai, This factory is specialized in making Good year welt shoes for exports. Managing Director: Mr. Ashfaque Ahmed Mecca Corporate Office: Kenmore Shoes Pvt Ltd., 151/4, Mount
Poonamallee Road, Ramapuram, Chennai – 600 089 ( Telephone No.s: +91 044 22522447, 22523532 Fax No.: +91 044 22523526 E-mail: ash@farida.com
Line of Business: This factory is specialized in making Good year welt shoes for exports. v FARIDA LEATHERWARE PVT LTD was established in 2000 having two factories at Ambur under the above name. Corporate Office: Farida Leatherware Pvt Ltd., 936/162, Telephone No.: +91 044 26610865 Fax No.: +91 044 26411363 Line of Business: One factory is fully engaged in manufactures (in-house) Leather soles, heels, insoles, counters, toe puffs etc. and another factory manufactures major components like synthetic [PVC, TPR] soles. v STUDIO Farida New Line Studio Pvt Ltd based in Chennai is responsible for the Design and Development of new product ranges. In line with market model trends. Established in 2000, it now is involved with most methods of construction, supplying samples to our customers worldwide. PRODUCT ENGINEERING DEPARTMENT: The Product Engineering Division is a technical department converting the concepts into bulk production by using CAD/CAM, Grading, and Assembling and also performs various trails and finally issues relevant meets for production such as Dies/Tools, Technical inputs, and specifications. Address: 151/4,
Fax: 91-44-22523526 Email: ash@farida.com v
" Contact Person: Mr. Mohamed Ismail
Telephone No.s: +91 044 25391734 and 52174917 Fax No.: +91 044 25391734 E-mail: ismail@farida.com Line of Business: Now Exeter Shoes is making all kinds of Shoe Unit Boxes in multi color using latest technology and best quality paper & carryout required tests on boxes. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100,000 |
Equity Shares |
Rs. 100/- Each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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20,200 |
Equity Shares |
Rs. 100/- Each |
Rs. 2.020 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
2.020 |
2.020 |
2.020 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
69.844 |
68.339 |
68.248 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
71.864 |
70.359 |
70.268 |
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LOAN FUNDS |
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1] Secured Loans |
92.604 |
30.302 |
12.122 |
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2] Unsecured Loans |
3.654 |
0.258 |
1.184 |
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TOTAL BORROWING |
96.258 |
30.560 |
13.306 |
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DEFERRED TAX LIABILITIES |
1.498 |
1.620 |
1.442 |
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TOTAL |
169.620 |
102.539 |
85.016 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
20.463 |
20.003 |
18.145 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
139.327
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108.375 |
83.536
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Sundry Debtors |
62.351
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36.720 |
21.504
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Cash & Bank Balances |
4.620
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5.106 |
5.302
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Other Current Assets |
39.765
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12.309 |
9.017
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Loans & Advances |
94.124
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69.224 |
39.711
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Total
Current Assets |
340.187
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231.734 |
159.070 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
181.090
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Provisions |
9.942
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Total
Current Liabilities |
191.032
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149.198 |
92.199 |
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Net Current Assets |
149.157
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82.536 |
66.871 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
169.620 |
102.539 |
85.016 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 (Estimated) |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
650.000 |
523.557 |
549.696 |
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Other Income |
NA |
44.219 |
33.104 |
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Total Income |
NA |
567.776 |
582.800 |
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Profit/(Loss) Before Tax |
NA |
8.153 |
5.665 |
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Provision for Taxation |
NA |
3.861 |
1.891 |
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Profit/(Loss) After Tax |
NA |
4.291 |
3.774 |
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Export Value |
NA |
394.895 |
433.114 |
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Imports Value |
NA |
297.736 |
135.960 |
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Total Expenditure |
NA |
559.623 |
577.135 |
KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
NA
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0.75 |
0.64
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Net Profit Margin (PBT/Sales) |
(%) |
NA
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1.55 |
0.97
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
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3.23 |
3.19
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Return on Investment (ROI) (PBT/Networth) |
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NA
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0.11 |
0.08
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Debt Equity Ratio (Total Liability/Networth) |
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2.65
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2.12 |
1.50
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Current Ratio (Current Asset/Current Liability) |
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1.78
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1.55 |
1.72
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LOCAL AGENCY FURTHER INFORMATION
History :
The company is a part of Farida group of companies. Ever since its inception, the Farida Group has followed the principle of putting enterprise, innovation and integrity above everything else.
Established in the year 1957 by late Mr.Mecca Haji Abdul
Majid Sahib at Ambur, Vellore District, Tamilnadu, in
Mr. M. Rafeeque Ahmed is the Chairman and Mr. M. Rasheed Ahmed is a Vice Chairman
Fixed Assets:
- Plant and Machinery
- Computer
- Photocopies – Local
- Paper Shredder
- Fax
Machine –
- Jeep
- Two Wheeler
- Other Equipment
- Telecom Equipment
- Land at Ambur
- Car
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Name of the company |
DELTA SHOES
PRIVATE LIMITED |
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Presented By |
Mr. A. Naimur
Rahman |
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1) Date and description of instrument creating the change |
Goods Security Agreement
Dated 23.04.2004 executed by Delta Shoes Private Limited (Hereafter referred
to as “ the company”) in favour of Citibank N.A. ( therein and hereafter
referred to as “the Lender”) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Total working
capital facilities of Rs.72.500 millions provided to Delta Shoes Private
Limited |
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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 |
The whole of
movable assets, including plant and machinery, both present and future,
stocks of raw materials, goods in process of manufacture, semi finished goods
and all finished and manufactured goods and articles together with all
stores, components and spares which now belong to and pertains to or may hereafter from time to
time during the continuance of this security belong to and pertain to. The
Borrower and which are or shall or may be brought into stored or be in or
upon or about. The Borrower’s factory, godowns and or their premises wherever
else the same may be situated stored or lying or being including any such raw
materials, inventories, article or goods, any stores spares an components or
other similar movable assets in course of transit or delivery to the Borrower
and all of the Borrower’s present and future book debts, outstanding Monies,
receivable, claims, bills investments, right to or on movable properties and
movable assets forming part of current and movable fixed assets which are now
due owing or payable or belonging to or pertaining to the Borrower or which
may at any time hereafter during the continuance of this security become due,
owing payable or belonging to or pertaining to the borrower in the course of
its business and together with all benefit advantages and legal incidence
thereof |
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4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration
of the lender having agreed to lend advance to the company said credit
facilities under agreement and declaration by the company inter alia as
follows: 1) Covenant by
the company to repay the facility at (2) above and pay interest and all other
monies in the manner set out in the said agreement between the company and
the Lender and to comply with the terms and conditions of the said Agreement 2) The said
current assets and fixed assets hypothecated to the Lender by way of first
charge created in favour of the bank, as security for an be charged with the
repayment of the loan with all interest, liquidated, damages, premia on
prepayment or on redemption, costs, charges and other expenses payable by the
company to the lender in respect thereof Margin – 28% for
stock and 28% for book debts. 3) The company to
keep the said assets in marketable and good condition and also insured as
provided therein 4) Power of
entry, power to take charge and or possession of seize, recovery, receive,
appoint and sell contract, dispatch for realization or otherwise dispose of
or deal with all or any part of the said goods, etc as provided therein |
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5) Name and Address and description of the person entitled to the charge. |
Citibank N.A. No.2, |
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6) Date and brief description of instrument modifying the charge |
Deed Modification
18.07.2005 |
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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. |
All other terms
and condition remaining unchanged the amount secured by charge increase to
Rs.82.500 millions from Rs.72.500 millions |
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Corporate
identity number (CIN) Foreign company registration number |
U18209TN1987PTC014919 |
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Name of the
Company |
DELTA SHOES
PRIVATE LIMITED |
|
Address |
15 ¼, |
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This form is for |
Modification of
Charge |
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Type of Charge |
Hypothecation |
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Particulars of
the charge holder |
Citibank N.A. No.2, |
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Amount secured by
the charge |
Rs.131.000
millions |
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Brief of the
principal terms and conditions |
Exclusive charge on
the present and future current and fixed assets of the company for working
capital credit facilities of Rs.131.000 millions sanctioned to M/s Farida
Classic Shoes Private Limited Covenant to repay
the facility at an interest rate of 8.5%p.a. |
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Description of
the property charged indicating |
Plant and
Machinery Furniture and
Fixture Book Debts Stock in trade Exclusive charge
on all present and future current assets including inventory and Receivables. Exclusive charge on
all present and future fixed assets including Plant and Machinery Located at any
premises / places owned by the company |
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Charge
identification |
80010449 |
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Brif description
of the instrument modifying the charge under section |
Deed of
Modification |
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Date of
Instrument |
29.07.2006 |
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Particular of the
present modification |
WC facilities of
Rs.101.000 millions sanctioned to M/s Farida Classic Shoes Private Limited
which are also secured by exclusive charge on assets of Delta Shoes Private Limited
are increase toRs.131.000 millions |
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 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.40.47 |
|
|
1 |
Rs.80.28 |
|
Euro |
1 |
Rs.54.43 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|