MIRA INFORM REPORT

 

 

Report Date :

23.06.2007

 

IDENTIFICATION DETAILS

 

Name :

ASIAN LEATHER LIMITED

 

 

Registered Office :

Asian House, E M Bypass Kasba, Kolkata – 700 107, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

01.01.1992

 

 

Com. Reg. No.:

53973

 

 

CIN No.:

[Company Identification No.]

U19116WB1992PLC053973

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALA02248B

 

 

PAN No.:

[Permanent Account No.]

AACCA2028H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers, Dealers, Traders, Exporters and Importere or as Agents in Leather and Leather Products of all kinds, sizes and description. 

 

 

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 756000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. 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

 

Registered Office :

Asian House, E M Bypass Kasba, Kolkata – 700 107, West Bengal, India

Tel. No.:

91-33-24434000 (6 Lines)

Fax No.:

91-33-24432000 / 24433000

E-Mail :

asianleather@vsnl.net

Website :

http://www.asianleather.com

 

 

Head Office :

19A, Jawahar Lal Nehru Road, Kolkata – 700 087, West Bengal, India

Tel. No.:

91-33-24434000

Fax No.:

91-33-24432000

E-Mail :

asianleather@vsnl.net

 

 

DIRECTORS

 

Name :

Mr. Nari Kalwani

Designation :

Chairman and Managing Director

Address :

“Abhi Sarika” Suite – 6B, 118 Southern Avenue, Kolkata – 700 029, West Bengal, India

Date of Birth/Age :

07.03.1954

Date of Appointment :

01.01.1992

 

 

Name :

Ms. Divya Kalwani

Designation :

Whole Time Director

Address :

“Abhi Sarika” Suite – 6A, 118 Southern Avenue, Kolkata – 700 029, West Bengal, India

Date of Birth/Age :

11.04.1960

Date of Appointment :

01.01.1992

 

 

Name :

Ms. Kamla L Karamchandani

Designation :

Director

Address :

“Shabari” Suite – 904, 106 Southern Avenue, Kolkata – 700 029, West Bengal, India

Date of Birth/Age :

13.05.1936

Date of Appointment :

06.06.2003

 

 

Name :

Mr. Ishwarlal Kalwani

Designation :

Director

Address :

89, Triveni Colony (Main), Indore – 452 001, Madhya Pradesh, India 

Date of Birth/Age :

04.09.1946

Date of Appointment :

30.06.2006

 

 

KEY EXECUTIVES

 

Name :

Mr. S D Basu

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

 

 

 

Mr. Nari Kalwani

 

245000

Ms. Divya Kalwani

 

227500

Mr. Kunal Kalwani

 

10000

Mr. Karan Kalwani

 

10000

Mr. Ishwarlal Kalwani

 

2500

Ms. Kaushalya Kalwani

 

2500

Mr. Sanjay Kalwani

 

2500

 

Names of Shareholders

 

Percentage of Holding

 

 

 

Directors or Relatives of Directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers, Dealers, Traders, Exporters and Importere or as Agents in Leather and Leather Products of all kinds, sizes and description. 

 

 

Products with ITC Code :
  • Leather Handbags  – 420221.09
  • Leather Ladies Bags – 420221.01
  • Shoulder Bags
  • Shopping Bags
  • Travel Bags
  • Ruck-Sacks
  • Men's Folios
  • Organisers
  • Leather Wallets and Purses – 420231.02
  • Keycases
  • Other Small Leather Goods

 

 

Exports :

 

Products :

All products

Countries :

Europe, UK, USA, Canada, Australia, Japan, Latin America 

 

 

Terms :

 

Selling :

L/C at sight

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

 

 

 

 

 

Leather Handbags

 

Pcs.

1.5 millions p.a.

NA

Leather Wallets/ Small Leather Goods

 

Pcs.

4.5 millions p.a.

NA

 

 

GENERAL INFORMATION

 

No. of Employees :

About 485

 

 

Bankers :

State Bank of India

Commercial Branch, 24 Park Street, Kolkata – 700 016, West Bengal, India

 

 

Facilities :

Secured Loan

(Rs. in millions)

 

31.03.2006

31.03.2005

From State Bank of India

-- Pre-Shipment Advance

-- Export Bills Purchased and Negotiated

-- PCFC Loan with S B I  

 

--

25.366

55.147

 

51.589

75.193

--

 

Note :

 

Working Capital facilities is secured by :

1] Hypothecation of stock of finished leather, other items of stores, work-in-progress, finished goods, and present and future book debts, claims, bills, outstanding monies receivables.

2] Collaterally Secured by:

    a) Second charges on entire present and future plant and machinery of the

        company.

    b) Extension of equitables mortgage over landed properties of the company situated at: i) leasehold land at IND-4B, East Kolkata Area Development Project, Kolkata – 700107, West Bengal, India

ii) Extension of charges over immovable properties, if any acquired in future.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

G. Chatterjee and Company

Mr. Debabrata Saha

Chartered Accountants

Address :

7/1C, Lindsay Street, Kolkata – 700 087, West Bengal, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shres

Rs. 100/- each

Rs. 100.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Shares

Rs. 100/- each

Rs. 50.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

50.000

50.000

2] Reserves & Surplus

 

139.117

133.120

NETWORTH

 

189.117

183.120

LOAN FUNDS

 

 

 

1] Secured Loans

 

80.515

126.782

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

80.515

126.782

 

 

 

 

TOTAL

 

269.632

309.902

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

132.545

143.355

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

8.987

0.500

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

58.342

65.804

 

Sundry Debtors
 

43.543

111.251

 

Cash & Bank Balances
 

8.489

1.374

 

Other Current Assets
 

9.569

11.084

 

Loans & Advances
 

17.346

2.813

Total Current Assets
 

137.289

192.326

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

2.623

24.124

 

Provisions
 

7.757

2.932

Total Current Liabilities
 

10.380

27.056

Net Current Assets
 

126.909

165.270

 

 

 

 

MISCELLANEOUS EXPENSES

 

1.191

0.777

 

 

 

 

TOTAL

 

269.632

309.902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

281.307

322.787

Other Income

 

22.769

23.729

Total Income

 

304.076

346.516

 

 

 

 

Profit/(Loss) Before Tax

 

18.100

13.257

Provision for Taxation

 

6.709

5.199

Profit/(Loss) After Tax

 

11.391

8.058

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

 

273.679

316.975

Total Earnings

 

273.679

316.975

 

 

 

 

Imports :

 

 

 

 

Raw Materials

 

0.000

49.386

 

Fittings and Consumables

 

7.621

4.214

 

Others

 

3.818

1.254

Total Imports

 

11.439

54.854

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

 

168.100

240.875

 

Purchases made for re-sale

 

0.264

0.652

 

Salaries, Wages, Bonus, etc.

 

20.124

17.454

 

Managerial Remuneration

 

0.600

0.600

 

Payment to Auditors

 

0.170

0.150

 

Interest

 

1.180

4.921

 

Insurance Expenses

 

0.476

0.523

 

Power & Fuel

 

3.365

3.336

 

Other Expenditure

 

91.697

64.748

Total Expenditure

 

285.976

333.259

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

3.74

2.32

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

5.95

3.82

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

6.49

3.62

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.09

0.07

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.48

2.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

13.22

7.11

 

 

LOCAL AGENCY FURTHER INFORMATION

 

FORM 8

 

Name of the company

ASIAN LEATHER LIMITED

Presented By

Mr. S D Basu, Company Secretary in WTP 

1) Date and description of instrument creating the 

    change

No instrument was executed, but mortgage was created by deposit of Title Deeds in 18.02.2000

 

As modified on 04.07.2001, 12.09.2002 and 29.07.2004 for Rs. 179.500 millions

2) Amount secured by the charge/amount owing on 

    the securities of charge

Facility

Amount

Term Loan

Rs. 64.500 millions

Letter of Credit

Rs. 10.466 millions

(US$ 240000)

Overall Limit

Rs. 74.966

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 scope and benefit of creating mortgage by deposit of title deeds / lease deeds of the properties of the company as specified in the schedule below is to create mortgage by deposit of title deeds/ lease deeds under section 79 of the Transfer of Property Act, 1882 and within the meaning of Section 58(f) of the said Act to secure repayment of the sum of Rs. 74.966 millions granted by the bank to the company under different credit facilities together with interest, commission, discount costs and charges thereon.

 

Schedule

1. Licence Deed dated 01.01.1999 executed between:

      a. The Calcutta Metropolitan Development 

           Authority.

      b. Asian Leather Limited   

 

2. All that piece and parcel of land measuring 2.093 acres in Plot No. IND-4B in Sector J, Kasba Industrial Estate, Kolkata – 700 078, West Bengal, India under East Kolkata Area Development Project in the district of 24 Parganas, both present and future.

 

By modification dated 04.07.2001, additional security was created by way of first charge together with all assets permanently fixed to the lands and buildinds and errections and plant and machinery appertaining or affixed therto shall continue to remain mortgaged to the Bank as security.      

4) Gist of the terms and conditions and extent and

    operation of the charge.

The borrower shall not do or allow anything which may prejudice the secutiry.

 

Interest, commission, discount, costs and charges as may be current from time to time for the respective credit facilities according to Banking norms and RBI Guidelines. 

5) Name and Address and description of the

    person entitled to the charge.

State Bank of India

Commercial Branch, 24 Park Street, Kolkata – 700 016, West Bengal, India

6) Date  and brief description of instrument

    modifying the charge

Memorandum of deposit for creation of further charge for overall limit where the initial charge is created by way of mortgage by deposit of title deeds dated 17.12.2004 (in the office of State Bank of India, Commercia Branch, 24, Park Street, Kolkata – 700016, West Bengal, India)

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.

By this modification, the overall limit is enhanced from Rs. 179.500 millions to Rs. 196.500 millions with details of credit facilities as specified below.

 

Nature  of facility

Limit

On first charge basis :

 

State Bank of India -

 

Term Loan

Rs. 79.500 millions

EPC

Rs. 60.000 millions

FBD

Rs. 35.000 millions

LC

Rs. 3.000 millions

BG

Rs. 4.000 millions

SLC

Rs. 15.000 millions

Overall Limit

Rs. 196.500 millions

 

Particulars of immovable properties continue to remain as before and for the sake of clarity are also given hereunder.

 

Company’s immovable property (building and errections) industrial plots measuring 2.093 acres in Plot No. IND-4B in Sector J, Kasba Industrial Estate, Kolkata – 700 078, West Bengal, India.

 

All other terms and conditions continue to remain as before in full force and effect. 

 

The Company’s fixed assets of important value include:

 

  • Leasehold Land
  • Building
  • Electric Installation
  • Plant and Machinery
  • Generator and Others
  • Office Equipment
  • Furniture and Fixtures
  • Vehicle

 

Leather type handled:

  • Cow
  • Water Buffalo
  • Goat
  • Sheep

 

Leather Finishing:

  • Drum Dyed
  • Aniline
  • Spongy nappa
  • Tango Timber
  • Sahara
  • Rancho
  • Bridge
  • Vatican
  • Western Milled
  • Veg.tanned
  • Dry Milled
  • Oil Tanned

 

 

 

 

 

 

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.40.71

UK Pound

1

Rs.81.24

Euro

1

Rs.54.63

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions