MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
PACIFIC LEATHER |
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Registered Office : |
83 / 137, BM Market, Juhi, Parampura, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.11.1995 |
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Com. Reg. No.: |
CLE / CFC / 90460 |
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IEC No.: |
0695000462 |
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PAN No.: [Permanent
Account No.] |
ACXPK1599B |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturer and Exporters of Leather Laces and Shoes Laces |
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 41000 |
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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 concern having satisfactory
track records. Proprietor is reported as experienced and respectable
businessman. 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/Factory : |
83 / 137, BM Market, Juhi, Parampura, |
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Tel. No.: |
91-512-2650520 / 2652670 / 3253192 / 3018347 / 2652678 |
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Mobile No.: |
91-9839081292 |
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Fax No.: |
91-512-2650157 |
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E-Mail : |
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Website : |
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Area : |
30000 Sq. fts. |
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Location : |
Owned |
SOLE PROPRIETOR
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Name : |
Mr. Masood Akram Khan |
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Designation : |
Proprietor |
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Address : |
15 / 58 – 1 Friends Enclave, Civil Lines, Opposite Amba Nursing Home, |
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Date of Birth/Age : |
40 Years |
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Qualification : |
Graduate |
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Experience : |
17 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporters of Leather Laces and Shoe Laces |
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Products : |
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Exports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C and Wire Transfers |
PRODUCTION STATUS
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Products |
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Unit |
Actual
Production / Per Day |
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Leather Laces |
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Pairs |
3000 |
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Shoe Laces |
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Pairs |
20000 |
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Tapes and Elastics |
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Meters |
6000 |
GENERAL INFORMATION
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Customers : |
Retailers |
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No. of Employees : |
121 (Office: 32; Factory: 89) |
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Bankers : |
Punjab National Bank Mall Road, |
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Facilities: |
Foreign Exchange Transactions. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
L.S. Aggarwal and Company Chartered Accountants |
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Address : |
130, Vinoba Nagar, |
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Tel No.: |
91-512-2643560 |
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Fax No.: |
91-512-2606267 |
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Memberships: |
Export promotion council of |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.7.760 millions |
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Borrowed : |
- |
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Total : |
Rs.7.760 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
Expected Sales (2007-08): Rs.55.000 millions
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
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PROPRIETORS FUNDS |
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1] Proprietor’s Capital |
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7.760 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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2.681 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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10.441 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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0.000 |
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TOTAL BORROWING |
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0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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10.441 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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3.117 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.123 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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2.284 |
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Sundry Debtors |
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1.377 |
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Cash & Bank Balances |
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0.575 |
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Other Current Assets |
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0.036 |
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Loans & Advances |
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5.614 |
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Total
Current Assets |
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9.886 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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2.681 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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2.681 |
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Net Current Assets |
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7.201 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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10.441 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
12.697 |
38.900 |
35.000 |
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Other Income |
0.355 |
0.000 |
0.000 |
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Total Income |
13.052 |
38.900 |
35.000 |
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Profit/(Loss) Before Tax |
0.822 |
1.750 |
1.550 |
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Provision for Taxation |
0.201 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
0.621 |
1.750 |
1.550 |
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Earnings in Foreign Currency : |
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Export Earnings |
9.122 |
NA |
NA |
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Commission Earnings |
0.000 |
NA |
NA |
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Other Earnings |
3.575 |
NA |
NA |
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Total Earnings |
12.697 |
NA |
NA |
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Expenditures : |
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Cost of Goods Sold |
9.611 |
37.150 |
33.450 |
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Depreciation |
0.369 |
0.000 |
0.000 |
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Interest |
0.146 |
0.000 |
0.000 |
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Administration and Selling Expenses |
2.104 |
0.000 |
0.000 |
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Total Expenditure |
12.230 |
37.150 |
33.450 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
4.76
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4.50 |
4.43 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.01
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4.50 |
4.43 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.32
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NA |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.08
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NA |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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0.26
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NA |
NA |
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Current Ratio (Current Asset/Current Liability) |
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3.69
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NA |
NA |
LOCAL AGENCY FURTHER INFORMATION
Company Details:
A strong foundation in the commercial hub, an experience of
more than a decade and support of an efficient management...what else makes a
company a success. Subject is a manufacturer and exporter
of high quality Leather Goods, Shoe laces, Leather Laces, Tapes,
Elastics, Belts and Footwear Accessories. They are situated in
the heaven of leather industry, the
Products
The products of subject match all global standards to meet
the expectations of their customer’s world over. Their intensity for
improvement and customer satisfaction motivates them to deliver their ultimate.
Quality
Quality is the motto of their organization. They believe in
building long term relations with their clients and this inevitably implies
cultivation of trust in their minds. They have realized this in more than a
decade’s experience that quality is the top most priority of any buyer. If the
quality of the product is good, then even the price does not matter to the
customer. Therefore, they at Pacific Leathers, bring out
the products whose enviable quality helps them to build this confidence in
their customers and make their relations long lasting.
Infrastructure
They are established in such an area where leather industry
took birth and flourished. Today, the region is exporting raw and leather items
to the world at large. Their state of the art infrastructure is sheltering the
most sophisticated machines and equipments. The designers and engineers of the
company are skilled assiduous masters of their professions. The quality check
mechanism of their company ensures delivery of impeccable quality products i.e. Leather
Goods, Shoe laces, Leather Laces, Tapes, Elastics, Belts, Footwear Accessories
at the most conducive prices and timely delivery of 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.95 |
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1 |
Rs.81.80 |
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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 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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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 |
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45 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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