MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
FORWARD SHOES INDIA PRIVATE LIMITED |
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Registered Office : |
(Old No. 50) |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.03.1994 |
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Com. Reg. No.: |
18-26984 |
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CIN No.: [Company
Identification No.] |
U19201TN1994PTC026984 |
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Legal Form : |
It is a Private Limited Liability company |
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Line of Business : |
Manufacturer and Exporter of Full Shoes, Shoes Uppers and Footwear with Outer Soles of Rubber and Plastic. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 210000 |
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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 and reputed company having satisfactory
track records. Directors 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 company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
(Old No. 50) |
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Tel. No.: |
91-44-25385658 / 25361634 / 25368906/ 25615034/ 25615658 |
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Fax No.: |
91-44-25366187/ 25366187/ 25615187 |
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E-Mail : |
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Area : |
(5,000 sq.fts.) Owned
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Factory 1 : |
No. 2. MGR Nedunchalai, Nagalkeni, Chrompet, Chennai – 600
044, Tamil Nadu, |
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Tel. No.: |
91-44-22510530 (eight lines) |
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Fax No.: |
91-44-22369008/25366182 |
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Area : |
20,000 sq.fts.(Owned) |
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Godown : |
8 Anna Salai, Pammal, Chennai-600044, |
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Tel. No.: |
91-44-22210378 |
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Fax No.: |
91-44-22369008/25366182 |
DIRECTORS
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Name : |
Mr. Asgar Ali Dhala |
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Designation : |
Chairman |
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Address : |
14, |
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Date of Birth/Age : |
03.06.1939 |
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Date of Appointment : |
05.10.1996 |
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Name : |
Mr. Muhamed Yavar Dhala |
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Designation : |
Managing Director |
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Address : |
4/32, |
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Date of Birth/Age : |
26.09.1967 |
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Date of Appointment : |
05.10.1996 |
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Name : |
Mrs. Zebeida Asgar Ali Dhala |
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Designation : |
Director |
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Address : |
14, |
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Date of Birth/Age : |
23.05.1940 |
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Date of Appointment : |
08.03.1994 |
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Name : |
Mr. Rehane Yavar Dhala |
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Designation : |
Director |
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Address : |
4/32, |
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Date of Birth/Age : |
27.01.1970 |
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Date of Appointment : |
08.03.1994 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mrs. Zubeida A Dhala |
1200 |
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Mr. Rehane Y Dhala |
600 |
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Mr. Muhamed Y Dhala |
7900 |
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Mr. Asgar A Dhala |
13300 |
All the shares are held by directors or their relatives.
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Full Shoes, Shoes Uppers and Footwear with Outer Soles of Rubber and Plastic. |
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Products : |
Casual/ Dress Shoes (Gents), Leather Shoe Uppers, Casual/ Dress Shoes
(Gents), Leather Shoe Uppers |
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Imports : |
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Countries : |
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Products : |
Leather Chemicals and Raw Materials |
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Exports to : |
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Terms : |
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Purchasing : |
50% Sight L/C and Balance against DOCs terms |
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Selling : |
L/C and DOCs terms |
GENERAL INFORMATION
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Customers : |
Some of the major customers of the company are : v
Annabella v
Antonini v
D. B. Shoes v
Gabor v
K. Shoes v
Lambert Howarth v
Mens Shoe International v
Monte v
Sanders and Sanders v
Schuh Union The Group's major customers are : v
Marks & Spencers v
v
Harbor v
Clarks International, v
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No. of Employees : |
180 (30 persons in office and 150 persons in
factory premises) |
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Bankers : |
Canara Bank, State Bank of Indian Bank Indian Overseas Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
U. M. Khalilullah & Company Chartered Accountant |
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Address : |
15, 12th Cross Street, Indira Nagar, Chennai –
600 020, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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30000 |
Equity Shares |
Rs.1000/- each |
Rs.30.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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23000 |
Equity Shares |
Rs.1000/-
each |
Rs.23.000
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 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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23.000 |
23.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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30.729 |
30.059 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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53.729 |
53.059 |
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LOAN FUNDS |
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1] Secured Loans |
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154.278 |
130.501 |
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2] Unsecured Loans |
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3.803 |
3.561 |
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TOTAL BORROWING |
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158.081 |
134.062 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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211.810 |
187.121 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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47.306 |
49.209 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.340 |
0.340 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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141.811 |
169.542 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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78.939 |
45.778 |
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Total
Current Assets |
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220.750 |
215.320 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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49.842 |
71.248 |
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Provisions |
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6.744 |
6.500 |
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Total
Current Liabilities |
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56.586 |
77.748 |
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Net Current Assets |
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164.164 |
137.572 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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211.810 |
187.121 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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510.333 |
570.408 |
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Other Income |
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38.921 |
43.347 |
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Total Income |
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549.254 |
613.755 |
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Profit/(Loss) Before Tax |
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1.870 |
3.570 |
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Provision for Taxation |
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1.200 |
0.850 |
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Profit/(Loss) After Tax |
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0.670 |
2.720 |
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Total Earnings |
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509.918 |
569.316 |
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Total Imports |
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63.823 |
94.617 |
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Expenditures : |
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Interest |
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8.760 |
7.108 |
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Depreciation & Amortization |
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6.870 |
7.251 |
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Other Expenditure |
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516.124 |
581.467 |
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Total Expenditure |
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531.754 |
595.826 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.34 |
0.58 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.34 |
0.58 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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0.70 |
1.35 |
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Return on Investment (ROI) (PBT/Networth) |
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0.03 |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.99 |
3.99 |
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Current Ratio (Current Asset/Current Liability) |
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3.90 |
2.77 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
FORWARD SHOES
INDIA PRIVATE LIMITED |
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Presented By |
STATE BANK OF |
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1) Date and description of instrument creating the change |
02.07.2003 Agreement of loan fro overall limit in from C-1 Agreement of hypothecation of goods and assets in form C-2 Agreement of pledge of goods and assets in Form C-3 Letter regarding the grant of individual limits within the overall limit in Form C-5 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.167.500 millions
With interchangeability of Rs.20.000 millions between EPC and FDB (Non LC) limit. |
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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 |
Hypothecation of plant and machinery stocks of raw materials, stock in process, finished goods, consumable stores and receivables, documents of title of goods, assets created out of term loan and counter guarantee. The company has agreed to create charge on lease hold rights on the factory land at 96/2, MGP Neduchalai, Nagalkeni belonging to Forward Leather Company and factory building constructed thereon belonging to the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest and other terms and conditions as stipulated in the agreement. Margin Raw materials/ Raw materials domestic/ import, stock in process, finished goods, export orders, letters of credit, Bank guarantee 10% |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Leather International Branch Chennai-600010 |
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6) Date and brief description of instrument modifying the charge |
23.12.2005 Supplemental agreement of loan for increase in the overall limit in form C1-A Supplemental agreement of hypothecation of goods and assets fro increase in the overall limit in Form C-2-A Supplemental agreement of pledge of goods and assets for increase in the overall limit in Form C5 Extension of equitable mortgage by way of deposit of title deeds of the company’s immovable property. All the above documents were made on 23.12.2005 and the same modification of charge. |
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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. |
Effect of modification The various credit facilities enjoyed by the company has now been enhanced from Rs.195.000 millions to Rs.225.000 millions, as follows : (Rs. In millions)
@ full interchangeability both ways between EPC and FDB (Non LC) limits. Terms and conditions : Rate of interest : Interest at the rate of 1.50% above SBAR (10.25%) effective rate 11.75% p.a. Margin : Raw material : 25% Imported : 25% Indigenous : 25% SIP : 25% Finished goods : 25% Letter of credit : 15% Bank Guarantee : 15% CC Book debts : 40% Cover period : 90 days Securities : Hypothecation of all present and future goods, book debts and all other movable assets of the company including documents of title goods, outstanding monies, receivables including receivables by way of cash assistance and /or cash incentives under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs/ excise duties under the duty draw back credit scheme or documents, contracts, insurance policies, guarantees, engagements, uncalled capital and all machinery present and future machinery belonging to or in the possession or under the control of the company whether in possession of the company or borrower or of the bank or of any third party whether in India or else where throughout the world (including all such goods, other movable assets as may be in course of shipment transit or delivery shall stand hypothecated to the bank to wa of first charge). Extension of equitable mortgage by deposit of title deeds of equitable mortgage by Forward Shoes India Private Limited of lease hold rights of the property at S No.96/2 measuring 2.81 acres at Pallavaram. All the above securities are already hypothecated/
mortgaged with State Bank of All other securities and terms and conditions remain unchanged. |
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Corporation identity number or foreign company registrations number of the company |
U19201TN1994PTC026984 |
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Name of the company |
FORWARD SHOES INDIA PRIVATE LIMITED |
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Address |
(Old No. 50) |
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This Form is for |
Modification of charge |
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Type of Charges |
Immovable property Movable property Hypothecation |
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Particular of the charge holder |
State Bank of Leather and International Branch Chennai-600010 Tamilnadu |
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Nature or description of the instrument creating charge |
Supplemental agreement of loan for increase in the overall limit in
Form C1-A Supplemental agreement of hypothecation of goods and assets fro increase in the overall limit in Form C-2-A Hypothecation letter in respect of machines accepted as a collateral security for advances (2 Nos.) Letter regarding the grant of individual limts within the overall limit in Form C-5 No instrument Extension of equitable mortgage by way of
deposit of title deeds of the company’s immovable property. |
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Date of the instrument creating charge |
25.01.2007 |
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Amount Secure by the charge |
Rs.425.000 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest : Term Loan : Interest at the rate of 0.50% below SBAR with a minimum of
11% p.a. with monthly rests. Terms of repayment : The term loan of Rs.200.000 millions is repayable in 60 monthly
installments of Rs.3.333 millions each from April 2008. Margin : 40.30% Extent and operation of the charge : As per agreement |
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Particulars of the Property charged |
As per original charge |
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Date of latest modification prior to the present modification |
23.12.2005 |
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Particulars of the present modification |
The various credit facilities enjoyed by the company now has been
enhanced to Rs.425.000 millions. Extension of equitable mortgage of company’s
immovable property |
HISTORY
The company was incorporated on 8thMarch, 1994 at
Chennai in Tamilnadu having Company Registration Number 26984.
The company was started in 1966 by Mr. Asgar Ali Dhala and
was initially a trading company E.I. Tanned
Hides and Skins. In 1974 a
tannery was constructed on a 3 acre (1,30,000 sq.fts) plot and finished leather
from E.I. Tanned goat skins was
manufactured and exported. From the
modest production of 50000 sq.fts. per month, the capacity has increased to
300000 sq.fts. per month with induction of sophisticated machinery.
In 1986 Mr. Muhamad Yavar Dhala, Son of Mr. Asgar Ali Dhala
joined the firm as a partner. The
company has set up a mini lab which is operational since February 1998.
Forward Group manufactures shoe upper, a division of the
most superior quality in different types of leathers.
Forward Group started a full shoe factory in September, 1994
in an area of 12000 sq.fts. with an installed capacity of 2000 pairs a day.
In April, 1996 the full shoe factory started supplying shoes to
"Marks & Spencers".
BUSINESS
The company is engaged in the business as Manufacturer and
Exporter of Full Shoes, Shoes Uppers and Footwear with Outer Soles of Rubber
and Plastic.
The company has its own Tannery at Nagalkeni.
The company’s buzzword is ‘QUALITY’ where process control systems
and constant quality checks within its laboratory ensure that all products
leaving, have a stamp of ‘QUALITY ASSURANCE’ on them.
The company use the following raw materials to produce the
finished goods :
v
Full Chrome Kid (goat) in various types of finishes
v
Bovine Leather in substance from
1.4/1.6 mm to 2.2/2.4 mm out of imported raw materials.
v
Buff Calf and Cow Calf out of Domestic
Raw Materials.
The company is in trade terms with:
v
Clark International,
v
First Land Trade Limited,
v
v
Harbor
The Group employs around 1250 persons in its' set up.
Promoter
Company
Forward Leather Company,
Line of Business : This is the parent company that has
floated subject. The parent company supplies the finished leather that is being
turned into shoes, uppers, soles etc, by the subject company.
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.40.95 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.55.09 |
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 |
|
--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 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 |
|