MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
HIJAZ LEATHERS PRIVATE LIMITED |
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Now Known As : |
HIJAZ LEATHERS PRIVATE LIMITED |
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Registered Office : |
60, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.04.2005 |
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Com. Reg. No.: |
55988 |
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CIN No.: [Company Identification No.] |
U19112TN2005PTC055988 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CHEH03690B |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturer & Exporter of finished Leather |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 5000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject has taken over the running business of Hijaz
Leathers, a partnership concern w.e.f. Directors who were partners earlier are experienced, respectable and having satisfactory means of their own. Trade relations are fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered / Head / Corporate Office : : |
57/(Old No. 60), |
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Tel. No.: |
91-44-25366938, 25381569 |
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Fax No.: |
91-44-25366934 |
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E-Mail : |
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Cable: |
HARAMAIN - CHENNAI |
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Tannery : |
371 (Old No 1104), |
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Tel. No.: |
91-4174-232530, 232163 |
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Fax No.: |
91-4174-233219 |
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Website: |
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Garment Unit: |
176/2, |
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Tel. No.: |
91-44-5385068 / 5364464 |
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Branch : |
60, Raja Muthiyah Salaiperiamet, Chennai-600003, |
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E-Mail : |
DIRECTORS
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Name : |
Mr. P. Mohd. Yousuf |
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Designation : |
Director |
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Address : |
M |
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Name : |
Mr. C. Mohd. Pervaze |
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Designation : |
Director |
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Address : |
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Name : |
Mr. M. Mohd. Muneer |
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Designation : |
Director |
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Address : |
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KEY EXECUTIVES
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Name : |
Mr. G Porselvam |
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Designation : |
Company Secretary |
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Address : |
No.25, |
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Tel No.: |
91-44-28142955/ 28142915 |
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Mobile No.: |
91-9841016465 |
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E-Mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
Percentage of
Holding |
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Directors or relatives of directors |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer & Exporter of finished Leather |
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Products : |
Ø Nappa Ø Nubuck Ø Antique Ø Aniline Ø Sheep Lining Ø Goat Lining Ø Suede |
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Exports to : |
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Imports from : |
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PRODUCTION STATUS
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Particulars |
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Installed Capacity |
Actual Production |
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Finished leather in sq. ft. per annum |
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5.000 million |
5.000 million |
GENERAL INFORMATION
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No. of Employees : |
Total 150 - 10 persons in office and 140 persons at tannery |
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Bankers : |
v
Indian Bank, Vaniyambadi Branch, Vaniyambadi, v
Indian Bank, v
Indian Bank, v ABN Amro Bank, Chennai v
State Bank of |
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Banking Relations
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Satisfactory |
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Auditors : |
V Krishnan & Company Chartered Accountant |
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Address : |
208, |
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Sister Concern : |
Ø Ideal Finishing Agency 1056/A1/Konamedu,
Vaniyambadi – 635 751, - Only Finished Leather/Exporter of Leather Accessories like Chemicals/Leather Garments |
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Membership : |
Ø Council for Leather Exports, Chennai, Tamilnadu Ø Chamber of Commerce |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000 |
Equity Shares |
Rs. 100/- each |
Rs. 1.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,500 |
Equity Shares |
Rs. 100/- each |
Rs. 1.050 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.050 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.113 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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1.163 |
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LOAN FUNDS |
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1] Secured Loans |
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13.277 |
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2] Unsecured Loans |
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4.258 |
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TOTAL BORROWING |
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17.535 |
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DEFERRED TAX LIABILITIES |
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0.016 |
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TOTAL |
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18.714 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.653 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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Sundry Debtors |
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Cash & Bank Balances |
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89.080 |
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Other Current Assets |
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Loans & Advances |
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Total
Current Assets |
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89.080 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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Provisions |
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Total
Current Liabilities |
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72.019 |
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Net Current Assets |
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17.061 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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18.714 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover |
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36.534 |
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Other Income |
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0.000 |
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Total Income |
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36.534 |
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Profit/(Loss) Before Tax |
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0.268 |
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Provision for Taxation |
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0.199 |
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Profit/(Loss) After Tax |
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0.069 |
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Earnings in Foreign Currency : |
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Other Earnings |
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20.751 |
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Total Earnings |
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20.751 |
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Imports : |
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Others |
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14.923 |
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Total Imports |
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14.923 |
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Total Expenditure |
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35.684 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
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PAT / Total Income |
(%) |
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0.19 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.73 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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0.30 |
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Return on Investment (ROI) (PBT/Networth) |
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0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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77.00 |
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Current Ratio (Current Asset/Current Liability) |
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1.24 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or
modification of charges
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Corporation identity number or foreign company registrations number
of the company |
U19112TN2005PTC055988 |
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Name of the company |
HIJAZ LEATHERS PRIVATE LIMITED |
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Address |
60, |
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This Form is for |
Creation of charge |
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Type of Charges |
Book debts Movable property Floating charge |
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Particular of the charge holder
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Indian Bank, |
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Nature or description of the instrument creating charge |
Packing Credit Rs.21 millions – Agreement for hypothecation of movables dated 19.12.2006 FBN/FBP Rs.10 millions – Agreement for Bills Purchased dated 19.12.2006 Letter of Credit Rs.12.500
millions – Agreement for hypothecation of goods received under Advance
Payment Guarantee dated 19.12.2006 |
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Date of the instrument creating charge |
19.12.2006 |
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Amount Secure by the charge |
Rs.43.500 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of interest : Packing Credit Rs.21 millions – Rate of interest 9% or such other rate as may be provided by the bank from time to time subject to renewal every year FBN/FBP Rs.10 million Rate of Interest 9% or such other rate as may be provided by the bank from time to time subject to renewal every year Letter of Credit Rs.12.500 millions rate of interest 9% or such other rate as may be provided by the Bank from time to time – subject to renewal every year Terms of repayment Packing Credit : Working capital limits No Repayment – Subject to renewal FBN/FBP- Working Capital Limits – no Repayment – Subject to renewal every year Letter of Credit – Non fund Based Limit – No repayment – Subject to renewal every year Margin No margin for all the working capital limits viz Packing Credit FBN/FBP and Letter of Credit Extent and operation of the charge : Floating charge on all movables
to the extent of Rs.43.500 millions |
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Particulars of the Property charged
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All movable including stock, debtors
etc. located in the Tannery at 1104 P J Nehru Street, Vaniyabadi and Head
Office at 60, Raja Muthiah Road, Periamet, Chennai-600003 |
The concern imports Chemicals used in Tanning and Raw Hides.
The concern export finished leather.
AS PER WEBSITE
Hijaz Leathers, established in 1990 is a leading manufacturer and
exporter of High Quality Finished Leather. The company is located at a place
that has both manpower and raw material in abundance. Equipped with modern machineries,
the company has a capacity to handle any quantity of tanning.
Hijaz Leathers offers a complete range of finished leather at
competitive prices. In-house leather sourcing facility helps in strict quality
control, right from tanning up to the finished product stage.
Quality is their watchword. Every product produced at Hijaz, passes
through stringent quality tests. They
adhere to international quality standards.
Professional R&D teams are tirelessly working to satisfy their
customer’s expectations. They bring home contemporary trends and create
innovative colours and finishes.
The company’s obsession with excellence is reflected at every stage,
right from classifying the leather according to textual variations, to
examining the smoothness of grain structure. They not only work with Indian
skins but also on imported skins to ensure superior finish. The advantage of a
vertically integrated operation cannot be over stressed. Top quality sheep and
goatskins are converted into finished leather at the fully mechanized tannery
to the exact specifications of every customer. Combined with traditional
tanning skills, the skins are transformed into leathers, which are
aesthetically appealing and toughened to withstand the rigors of everyday use.
Joint Venture / Agents
With the globalization of business we are always open to new avenues and
markets.
They would be interested for having Joint Ventures and agents for
developing new product and market. They can even provide assistance and support
to people who want to setup the Tannery of their own.
If they are interested please write to us for details
The tannery is situated in the traditional tanning belt in
Hijaz Leathers produces 5 million sq. ft of finished leather per annum.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.93 |
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1 |
Rs.80.46 |
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Euro |
1 |
Rs.54.76 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--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 |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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 EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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