MIRA INFORM
REPORT
|
Report
Date : |
07.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
TREAD
STONE LIMITED |
|
|
|
|
Registered
Office : |
39,
Factory Area, Fazal Ganj, Kanpur-208012, Uttar Pradesh |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
06.10.1987 |
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Com.
Reg. No.: |
20-9029 |
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CIN
No.: [Company
Identification No.] |
U51210UP1987PLC009029 |
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|
TAN
No.: (Tax
Deduction & Collection Account No.) |
KNPT01110E |
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PAN
No.: (Permanent
Account No.) |
AAACL2544H |
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|
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Legal
Form : |
Closely Held Public Limited Liability Company. |
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|
|
|
Line
of Business : |
Manufacturers
and Exporters of Horse Riding Shoes and Breaches,
etc. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
880000 |
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|
|
|
Status
: |
Satisfactory
|
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|
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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. Directors are reported as experienced,
respectable and resourceful businessmen. Their trade relations are reported
as fair. Payments are usually correct. The
company can be considered for small business dealings on safe and secured
trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
39,
Factory Area, Fazal Ganj, Kanpur-208012, Uttar Pradesh |
|
Tel.
No.: |
91-512-2234632
/ 2234634/ 2215787 |
|
Fax
No.: |
91-512-2519059 |
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E-Mail
: |
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Head
Office : |
39, Factory Area, Fazal Ganj, |
|
Tel.
No.: |
91-512-2234632 / 2234634/ 2215787 |
|
Fax
No.: |
91-512-2519059 |
|
E-Mail
: |
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|
Area : |
2000 sq.fts. |
|
Location : |
Owned |
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|
|
|
Plant
/ Warehouses : |
39, Factory Area, Fazal Ganj, |
|
Tel.
No.: |
91-512-22234632 / 22234634/ 2215787 |
|
Fax
No.: |
91-512-22519059 |
|
E-Mail
: |
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|
Area : |
2000 sq.fts. |
|
Location : |
Owned |
DIRECTORS
|
Name : |
Mr. |
|
Designation
: |
Director |
|
Date of Birth : |
17th
October, 1957 |
|
Qualification
: |
Graduate |
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Experience
: |
26 years |
|
Address
: |
C-33,
Sarvodaya Nagar, Kanpur-208002, |
|
Other
Directorship : |
Mustang Leathers Private Limited |
|
|
|
|
Name : |
Mrs.
Savitri Wadhwa |
|
Designation
: |
Director |
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|
|
|
Name : |
Mrs. Alka Wadhwa |
|
Designation
: |
Director |
|
Date
of Birth : |
6th August, 1960 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
Mr.Krishna
Kumar Wadhawa |
60000 |
45.08 |
|
Mrs.
Savitri Wadhwa |
28920 |
21.73 |
|
Mrs. Alka
Wadhwa |
10440 |
07.84 |
|
O P HUF |
30120 |
22.63 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
and Exporters of Horse Riding Shoes and Breaches,
Shoes, Uppers, Saddlery and other Leather Products etc. |
|
|
|
|
Products
: |
>
Horse Riding Shoes >
Breaches >
Shoes >
Uppers >
Saddlery >
Other Leather Products |
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|
|
|
Brand
Names : |
“ Hansom”. |
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Exports
to : |
Europe, |
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Imports
from : |
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Terms
: |
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Selling : |
L/C or Credit at sight terms. |
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Purchasing : |
L/C or D/A and
Credit terms. |
GENERAL INFORMATION
|
Suppliers
: |
Ř
Amit Enterprises Ř
Bahrat Lubricants Ř
Indcoat Footwear Ř
Momin International Ř
Saveena Processors Ř
Shri Balaji Marketing Ř
Thread India Limited Ř Viraj Syntex |
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|
|
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Customers
: |
Ř Wholesaler Ř Retailer |
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|
|
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Trade
References : |
·
Rashita Processing Private Limited ·
Mustung Leather Private Limited ·
Godolo and Godolo Export Private Limited ·
Madura Coats Limited |
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|
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No. of
Employees : |
180 |
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Bankers
: |
Bank of |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Batra
Agarwal Associates Chartered
Accountant |
|
Address
: |
18/52,
the Mall, Kanpur-208001, |
|
Tel.
No.: |
91-512-22363447/2315901 |
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|
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Affiliates
: |
Mustang Leathers Private Limited |
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|
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Parent
Company : |
Wadhwa Group Company |
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Sister
Concerns : |
·
Treadstone International Fazal Ganj, ·
Grand Export |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
150000 |
Equity
Shares of each |
Rs.100/- |
Rs.15.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
133080 |
Equity
Shares |
Rs.100/- |
Rs.13.308 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
13.308 |
13.308 |
13.308 |
|
2] Reserves & Surplus |
0.000 |
0.000 |
110.000 |
|
3] Profit and Loss Account |
208.828 |
199.203 |
42.341 |
NETWORTH
|
222.136 |
212.511 |
165.649 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
108.017 |
4.997 |
0.263 |
|
2] Unsecured Loans |
21.874 |
3.640 |
-- |
TOTAL BORROWING
|
129.891 |
8.637 |
0.263 |
|
DEFERRED TAX LIABILITY |
3.970 |
3.779 |
1.754 |
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|
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TOTAL
|
355.997 |
224.927 |
167.666 |
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APPLICATION OF FUNDS |
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|
|
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|
|
|
|
|
FIXED ASSETS [Net Block] |
39.768 |
39.484 |
34.547 |
|
Capital work in progress |
2.706 |
1.772 |
0.000 |
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INVESTMENTS |
35.756 |
49.226 |
29.800 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
34.558 |
27.115 |
15.528 |
|
Sundry Debtors |
54.004 |
46.480 |
25.110 |
|
Cash & Bank Balances |
27.168 |
32.321 |
40.975 |
|
Other Current Assets |
0.000 |
0.000 |
40.923 |
|
Loans & Advances |
243.506 |
84.030 |
0.130 |
|
Total Current Assets |
359.236 |
189.946 |
122.666 |
|
Less: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities |
43.048 |
22.047 |
19.347 |
Provisions
|
38.503 |
33.550 |
-- |
Total Current Liabilities
|
81.551 |
55.597 |
19.347 |
|
Net Current Assets |
277.685 |
134.349 |
103.319 |
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|
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|
|
MISCELLANEOUS EXPENSES |
0.082 |
0.096 |
0.000 |
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|
|
|
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GRAND
TOTAL
|
355.997 |
224.927 |
167.666 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
136.142 |
193.493 |
|
|
|
Other Income |
9.940 |
6.774 |
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|
|
Total
Income |
146.082 |
200.267 |
186.871 |
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|
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|
Profit/(Loss) Before Tax |
11.320 |
35.142 |
47.945 |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
11.320 |
35.142 |
47.945 |
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|
|
|
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Total
Earnings |
NA |
NA |
171.343 |
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|
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Total
Imports |
NA |
NA |
21.869 |
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Expenditures : |
|
|
|
|
|
|
Increase/(Decrease) in Finished Goods |
(3.699) |
|
|
|
|
Salaries, Wages, Bonus, etc. |
11.351 |
8.759 |
|
|
|
Payment to Auditors |
0.022 |
0.022 |
|
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|
Interest |
2.649 |
1.955 |
138.926 |
|
|
Insurance Expenses |
0.424 |
0.371 |
|
|
|
Depreciation & Amortization |
2.208 |
2.007 |
|
|
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Other Expenditure |
75.903 |
93.263 |
|
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Total
Expenditure |
134.762 |
165.125 |
138.926 |
|
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
7.75 |
17.55 |
25.66
|
|
|
|
|
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|
Net Profit Margin
(PBT/Sales) |
(%) |
7.75 |
17.55 |
25.66
|
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|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
2.84 |
15.32 |
25.63
|
|
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|
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|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.05 |
0.16 |
0.29
|
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
0.95 |
0.30 |
1.13
|
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
4.40 |
3.42 |
6.34
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was
incorporated on 6th October, 1987 at
The name
and style of the company was changed to present with effect from 16th
August, 2001.
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
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.40.63 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.54.89 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background
(20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |