MIRA INFORM REPORT
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Report
Date : |
16.06.2007 |
IDENTIFICATION DETAILS
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Name : |
ESS AAR UNIVERAL PRIVATE LIMITED |
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Registered
Office : |
G – 90, Basement, Preet Vihar, |
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
31.07.1984 |
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Com.
Reg. No.: |
55-66225 |
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CIN
No.: [Company
Identification No.] |
U00000DL1984PTC066225 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
KNPE01036A |
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Legal
Form : |
Private Limited Liability Company. |
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Line
of Business : |
Manufacture and Exporter of Electrical Control Panels, Bus
Duct and Steel fabricated components. |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
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
175000 |
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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 is a well – established company having
satisfactory track. Trade relations are fair. General financial position is
satisfactory. Payments are usually correct and as per commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions.
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LOCATIONS
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Registered
Office : |
G – 90, Basement, Preet Vihar, |
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Tel.
No.: |
91-11-22429553 |
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Fax
No.: |
91-11-22454528 |
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E-Mail
: |
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Website
: |
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Location : |
Commercial |
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Administer
Office : |
201, Pankaj Chamber, Commercial Complex, Preet Vihar, |
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Factory
1 : |
C-10, Panki Industrial area-III, kanpur-208022 |
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Tel.
No.: |
91-512-2692515/2692516 |
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Fax
No.: |
91-512-2692517 |
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E-Mail
: |
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Website
: |
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Area : |
42300 Sq. ft (Covered Area – 30,000 Sq. ft), Manufacturing
Area – 25000 Sq. ft, Office Block – Double Storey – 2000 Sq. ft |
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Location : |
Owned (Industrial) |
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Factory
2 : |
A –40/1, Site IV, Sahibabad Industrial Area, |
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Tel.
No.: |
91-120-2896012/2896074 |
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Fax
No.: |
91-120-2895951 |
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E-Mail
: |
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Location : |
Industrial |
DIRECTORS
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Name : |
Mr.
Sudhir Rustagi |
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Designation
: |
Director |
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Address
: |
G-90,
Preeti Vihar, Delhi-110092, |
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Date
of Appointment : |
28th May, 1997 |
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Name : |
Mr. Neeraj
Rustagi |
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Designation
: |
Director |
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Date
of Appointment : |
28th May, 1997 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mrs.
Bimla Devi Rustagi |
23450 |
4.85 |
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Mr. Devi
Dayal Rustagi |
700 |
0.14 |
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Mrs.
Kalpna Rustagi |
38850 |
8.04 |
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Mr.
Sudhir Rustagi |
237250 |
49.07 |
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Mr.
Tanmay Rustagi |
91450 |
18.91 |
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Mr.
Gandharv Rustagi |
91450 |
18.91 |
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Mrs. Usha
Rustagi |
350 |
0.07 |
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Total |
483500 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacture and Exporter of Electrical Control Panels, Bus
Duct and Steel fabricated components. |
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Products
: |
v
ACB and OCB Panels v
Annunciator Panels v
Automatic Power Factor
Improvement Panels v
Busbar Trunking Panels v
Capacitor Panels v
Change Over Panels v
Control Desks v
Distribution Boards for AC
and DC v
Feeder Pillars v
Fuse Distribution Boards v
Local Control Station
Panels v
Low Tension and High
Tension Main Panels v
Motor Control Centres v
PLC Panels v
Power Control Centres v
Power Distribution Boards v
Push Button Stations v
Relay Panels v
Relay and Metering Panels |
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Exports
to : |
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Terms
: |
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Selling : |
Cash or Credit (30 days) |
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Purchasing : |
Cash or Credit (30 days) |
GENERAL INFORMATION
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Customers
: |
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No. of
Employees : |
69 |
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Bankers
: |
v Allahabad Bank v Punjab National Bank v HDFC Bank Limited v ICICI Bank Limited v The Bank of Rajasthan Limited,
75/232, Halsey Road, Kanpur State Bank of |
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Banking Relations : |
Satisfactory |
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Auditors
: |
P. L.
Tondon and Company Chartered
Accountants |
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Address:
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Tel.
No.: |
91-512-2366774/2317857 |
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Fax
No.: |
91-512-2351560 |
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Associates/Subsidiaries
: |
Rustagi Engineering Udyog Private Limited, |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
6000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 60.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2901000 |
Equity
Shares |
Rs. 10/- each |
Rs. 29.010 millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
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1] Share
Capital |
29.010 |
4.835 |
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2] Share
Application Money |
0.000 |
0.000 |
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3]
Reserves & Surplus |
15.176 |
28.057 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH
|
44.186 |
32.892 |
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LOAN
FUNDS |
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1]
Secured Loans |
6.471 |
5.331 |
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2]
Unsecured Loans |
28.917 |
26.778 |
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TOTAL
BORROWING
|
35.388 |
32.109 |
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DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
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TOTAL
|
79.574 |
65.001 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
49.197 |
48.463 |
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Capital work-in-progress
|
1.583 |
0.000 |
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INVESTMENT
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
25.804 |
16.380 |
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Sundry Debtors
|
44.589 |
24.078 |
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Cash & Bank Balances
|
4.094 |
6.584 |
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Other Current Assets
|
0.574 |
0.372 |
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Loans & Advances
|
12.158 |
5.843 |
Total Current Assets
|
87.219 |
53.257 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
49.973 |
33.918 |
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Provisions
|
8.452 |
2.801 |
Total Current Liabilities
|
58.425 |
36.719 |
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Net
Current Assets
|
28.794 |
16.538 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
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TOTAL
|
79.574 |
65.001 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
232.552 |
150.282 |
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Profit/(Loss) Before Tax
|
15.691 |
5.379 |
Provision for Taxation
|
0.000 |
0.000 |
Profit/(Loss) After Tax
|
15.691 |
5.379 |
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Export Value
|
10.179 |
3.531 |
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Total Expenditure
|
216.860 |
144.903 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
6.74 |
3.57 |
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Net Profit Margin
(PBT/Sales) |
(%) |
6.74 |
3.57 |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
11.50 |
5.28 |
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Return on Investment (ROI)
(PBT/Networth) |
|
0.35 |
0.16 |
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Debt Equity Ratio
(Total
Liability/Networth) |
|
2.12 |
2.09 |
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Current Ratio
(Current
Asset/Current Liability) |
|
1.49 |
1.45 |
LOCAL AGENCY FURTHER INFORMATION
As per website details:
Profile
Ess Aar Universal Private Limited, a prestigious name in the
P.U. Shoe Sole industry has established itself as a leading player in both the
domestic and the international market through its manufacturing excellence and
export proficiency.
Their unflinching and sincere efforts over years have placed them on a pedestal
higher than their competitors. It is their product that itself speaks of the
brand they have been able to build for their company. Their focussed attention
towards the quality of the products and in satisfying their clients forms their
prime objective. Keeping abreast of all these factors, they have been able to
create a mark by understanding the market requirements and innovation novelty
in their P.U shoe sole design.
Their Achievement
They are the first to introduce in
1.
2.Wrinkle-free Leather Micro covered foot bed.
Manufacturing and Production Capacity
Imbibing the best quality system in their products, they also offer customized
range of products on the basis of criteria like weight, density, comfort,
texture, feel (soft/hard) and look (matt/ shiny).
Their present production capacity is 10,500 pairs per day and they are
continuously striving to improvise advance techniques to increase their
manufacturing capacity in the future.
Infrastructure
P.U shoe sole production requires a highly precision technology and choice of
machine is critical to a project's success, which is guided under thoroughly
trained industry professionals.
They employ the latest pouring moulding technology to lend their products with
enhanced performance and high grade finishing.
Quality
Quality forms the spine-support of their enterprise. They tolerate no
compromise in the quality of the products they manufacture and the service they
deliver. Their quality parameters stand on the following grounds:
- The raw materials are
procured from the best suppliers in the world to obtain the best quality
of the finished product.
- The process of manufacturing
employs various automated control and checks to have uniform and
consistent parameters like heating temperature, time period for heating of
chemicals and their cooling in moulds etc.
- Most of the designs of the
sole are registered under various registration numbers with Controller
General of Patent, Designs and Trademarks in
- They have an in-house
testing facility system for the finished product. They evaluate them
on certain parameters set on the lines of international quality standards
with the help of machines like Bata Belt, Benewart, Flex machine, etc.
- They also offer customized
version of the products to satisfy their desired requirement in terms
of shape, contour, design etc. as per client requirement.
- They attach great significance
to on-time delivery of their products and curtail all means for
unnecessary delay.
Their quality of service also reflects in the after-sales
service they offer. For them, a deal done is not the end of it; they
maintain a record of their customers and ensure satisfaction on their part from
time to time. 
Why
To choose Indian market for P.U. Shoe Sole in comparison to its other
competitors like
Some of the factors responsible for
- This labor-intensive industry
is facilitated by cheap influx of cost-effective labor force.
Technology has now become easily accessible, which during the past
years was a major constraint.
Why Them?
"Striving to be the best" makes them define a line for success much
higher than those already think themselves to be successful and thereby make
persistent efforts to enhance their products and services. Their strengths that
answer the interrogation are:
- They design their products to
be in tune with the ever-changing needs of the fashion industry.
- Their products meet the highest
international benchmark of quality.
- They offer superior quality at
competitive prices.
- Delivery schedules are attended
with strict adherence.
- Customized product
manufacturing is facilitated by them.
After-sale service forms one of the prime objectives of
their business deals.
Their clientèle
They have served the requirement of some of the major brands in the footwear
industry. The list includes the following with umpteen other revered clients-
- Reebok
- Mephisto
- Ecco
- Stonefly
- Hushpuppies
- Bata
Query
They solicit bulk queries from whole-sellers, distributors and others in the
supply chain details regarding their products and services. They will answer
the queries at the earliest.
Their
Men's
Collection - Women's
Collection - Kid's
Collection - Finished
Products - Other
Products
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.40.97 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.54.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
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FINANCIAL
CONDITION |
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|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
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|
--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 |