MIRA
INFORM REPORT
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Report Date : |
25.06.2007 |
IDENTIFICATION DETAILS
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Name : |
FORWARD LEATHER COMPANY |
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Registered Office : |
37 (old) 50, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1966 |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the partners. |
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Line of Business : |
Manufacturing and Exporting finished leather and shoe components, soles, upper finish shoes and PU / PVC / TUR / leather shoes. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed concern having satisfactory
track. Partners are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
37 (old) 50, |
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Tel. No.: |
91-44-25615658 / 50345906 |
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Fax No.: |
91-44-25366187 |
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E-Mail : |
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Website : |
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Area : |
130000sq.fts |
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Factory 1 : |
7, |
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Tel. No.: |
91-44-22510531 / 37 / 22380017 / 22510533 / 22411183 /
22415059 / 22414317 |
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Fax No.: |
91-44-22369008 |
PARTNERS
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Name : |
Mr. Dhala Ali Asgar |
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Designation : |
Partner |
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Address : |
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Date of Birth/Age : |
17.02.1940 |
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Name : |
Mr. Asgar Ali Zubeida |
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Designation : |
Partner |
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Address : |
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Date of Birth/Age : |
23.05.1940 |
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Name : |
Mr. Dhala Yavar Muhamad |
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Designation : |
Partner |
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Address : |
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Date of Birth/Age : |
269.09.1967 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting finished leather and shoe components,
soles, upper finish shoes and PU / PVC / TUR / leather shoes |
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Products : |
+
Fine Kid Leathers in the following executions : Glazed Milled Glazed Polished Nappa (Velvet Kid) Burnish +
Rugged Cow Leathers for Mens Shoes in substances ranging from 1.6 to
2.8 mm, in the following executions. Nubucks Milled Nubucks Milled Grain Leathers Oily Milled Leathers Oil Pull Ups Crazy Horse +
Smooth Box Leathers (Corrected Leathers) in
substances 1.4 to 1.8 +
Fine
Cow Calf Leathers from New Zealand Calf and French Kips in polished finish. |
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Exports : |
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Products : |
Shoes |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
Cash, Credit (30 days / 60 days / 90 days) |
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Purchasing : |
Cash, Credit (30 days / 60 days / 90 days) |
GENERAL INFORMATION
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No. of Employees : |
2000 (Group) |
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Bankers : |
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Canara Bank, |
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Facilities : |
Export Limit CPC Rs. 10.000 millions Foreign Bills :Rs.15.000 millions Import L/C Rs. 2.500
millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
U Mohammed Khalilullah Chartered Accountants |
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Address : |
8, 12th Cross Street, Indira Nagar, Chennai-600020, Tamilnadu |
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Memberships : |
Leather Export promotion Council |
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Associates/Subsidiaries : |
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Forward Shoe ( - Manufacturer of full Shoes, Shoe Uppers, (Leather supplied by promoter firm for manufactures of shoe upper and full shoes). + Souleficio, Chennai No. 50, Anna Salai, Nagalkeni, Chromepet, Chennai – 600 044 Tel. No. 91-44-22210378 / 22387091 Fax No. 91-44-22369008 E Mail
: suolificiochennai@vsnl.net |
CAPITAL STRUCTURE
Not Available
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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240.000 |
210.000 |
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Expected Sales (2007) : Rs.1750.000 millions (Group)
Expected Sales (2008): Rs..270.000
millions
Expected Sales (2008); Rs.2000.000 millions (Group)
LOCAL AGENCY FURTHER INFORMATION
History:
The concern was established in the year 1966 at Chennai in Tamilnadu as a partnership concern.
Subject is a part of Forward Group of Companies.
Subject is a reputed manufacturer and exporter, specialising in finished leather, shoe uppers and shoes. Established in the year 1966 on a 130000 sq.fts. campus, it has established a firm presence in international markets.
To establish its own niche market in
Subject is a member of various leather / shoe / allied
trades organisations like SATRA, Central Leather Research Institute (CLRI),
Council for Leather Exports (CLE), Modeurop, etc and takes an active part in
the development of leather and shoe industries in
It has won several merits and awards to its credit and is registering an impressive growth year after year.
Productions:
The concern’s shoe upper division was started in the year 1989. Its’ current capacity is 3000 pairs per day of shoe uppers for export.
It produces high quality shoe uppers from calf, kid, smooth box and sheep leathers in varieties like ladies high boots, ladies ankle boots, ladies pumps, sandals, children’s uppers of all types, uppers from San-Crispino construction of shoes, uppers for welted construction of shoes, moccasins, mens oxford, derby and brogues, ghillie uppers and woven uppers.
The concern’s full shoe division was started in the year 1994. Its current capacity is 3000 pairs per day of men’s shoes. It produces mens’ classic shoes for the European market in smooth box and burnishable leathers with leather and synthetic soles of impeccable quality and finesse.
The concern is in
trade terms with :
Ø
Farida Prime Tannery, 936,
Contact Person : Mr. Rafeeque Ahmed
Tel No. 91-44-2641 1325 / 2649 / 1598 / 1228
Ø
M.A. Khizar Hussain & Sons,
Tel No. 91-44-2532 2732/2733
The tannery, with a capacity of 6 million sq.feet per year,
is the first Foreign direct investment in the tanning sector in
Superior Calf Skins and Cow hides for this tannery is
sourced from various parts of the globe-mainly from European countries and
The tanneries are ably supported by laboratory testing facilities, to assure quality of their leathers. The company is committed to a cleaner, greener environment and all the operations are eco-friendly. The group’s tanneries are regular participants and contributors to the Modeurop Forward’s leather have a global presence-in as many as 25 countries around the world.
The concern operates from caption owned office of area admeasuring 5000 sq. fts. which is located in a prime business area. Caption factory of area admeasuring 20,000 sq.fts. is also owned by the concern.
The concern employs around 180 persons in its' set up comprising of 30 persons in office and 150 persons in factory.
press release
Foreign
Collaboration – A News Clipping
UK-based Mike Artherton, Design and Development Director of the Group, said the Indian footwear industry had a world of opportunity to offer footwears that would compete with the best in the world.
As part of the expansion plan, the company had invested Rs. 120 millions this year, the chairman, Asgar Ali Dhala Said.
“All the development in the taken place in our unit at Pallavaram, a Chennai suburb, and we are very happy here. A large number of families in Pallavaram depend upon us and for out livehood and they are happy with the treatment and the facilities here”, Asgar Ali Said.
In a significant development in the leather industry, the Rs. 1200 million Chennai-based Forward Group, a leading leather manufacturer and exporter, specializing in finished leather, shoe uppers and full shoes, has struck a first-of-its-kind joint venture with Euro 20m Conceria Virginia Italy (CVI), a 10-year-old Italian tannery, specializing in leathers for shoes and leather goods, for the setting up of a six million sq. ft. p.a. state-of-the-art leather manufacturing facility in Chennai.
This is the first FDI in the tanning sector in
Headquartered in
Ø
First FDI into
Ø Initial investment of Rs. 100 millions
Ø Yavar Dhala to be the MD of the JV
Ø 6 million sq. ft. per annum production facility to go live in June 2004
Ø To set up a 3000 sq. ft. leather showroom in Chennai in April 2004
Ø Targets Rs. 600 millions revenue on an annualized basis by the third year of manufacturing
The production facility will become the first BOVINE tannery
in
The manufacturing technology will be completely and exclusively provided by CVI, who will source European raw hides, wet blues from their established sourcing procedures and partners provide complete technical know-how for manufacture and also market finished leathers for the JV.
Yavar Dhala, the Managing Director of Forward Group, will head the JV as its MD. Conceria Virginia Italy will base two senior technologies in Chennai to set up and run the manufacturing facility at the tannery. Laura Verucci will head he global marketing operations of the JV as its marketing director.
Commenting on the Joint Venture, Yavar Dhala, MD Forward
Group and MD of the JV said “There are good tanneries in
The offshoring boom of the European shoe business into
Sister Concern:
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It is a joint
venture between Forward Group of Companies and Malaspina spa of
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It has state-of-the-art plant, with latest
moulding machines from
- Ladies, Children’s and Mens’ soles are produced in the following types :
PVC soles, TPR soles, Leather encapsulated PVC soles, single colour and bi-colour soles in countless colour combinations and dual density soles.
press clipping
The Chennai based Rs. 1020 million Forward Group is going in
for a major expansion plan in
With manufacturing in Europe becoming ‘Unviable’ due to increasing cost structures, moving offshore to a low-cost base like India has become a better proposition for several European manufacturers, says the chairman of Forward Group, Asgar Ali Dhala.
The Forward Group will foray into
“We believe there is a lot of potential for full shoe business and also give us an easy entry for our foray into the continental European market,” the company’s managing director Yavar Dhala said.
Yavar Said the strategy for its expansion in
The company would garner a revenue of Rs. 50 millions in the
first year of its foray into Continental Europe and Rs. 500 millions in the
next two-three years.
In line with the expansion into Continental Europe, the company would increases the capacity of its Chennai plant to 1.500 millions pairs a year over the next 6 to 12 months from the present 1 millions pairs a year.
Subject hopes to up the revenue to Rs. 1500 millions in the next financial year, Yavar added.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.81 |
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1 |
Rs.81.57 |
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Euro |
1 |
Rs.54.91 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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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58 |
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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