MIRA
INFORM REPORT
|
Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
VIROLA EXPORTS |
|
|
|
|
Registered Office : |
21/46, Freeganj, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
1992 |
|
|
|
|
Legal Form : |
Partnership concern with an unlimited liability of the partners. |
|
|
|
|
Line of Business : |
Manufacturers and Exporters of Gents, Ladies and Children Footwear. |
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 : |
USD30000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established concern having satisfactory track
records. Trade relations are fair. Payments are usually correct and as per
commitments. The concern can be considered good for
normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office/ Factory 1 : |
21/46, Freeganj, |
|
Tel. No.: |
91-562-4025500/ 2620941/ 2620764 |
|
Mobile No.: |
91-9837009196 / 9837036006 |
|
Fax No.: |
91-562-2621153 |
|
E-Mail : |
|
|
Website: |
|
|
Area : |
600 Sq. mtrs. |
|
Location : |
Owned |
|
|
|
|
Factory 2 : |
17/4, A-6, |
|
Tel. No.: |
91-562-3091172/ 3091166 |
|
Fax No.: |
91-562-2621153 |
|
E-Mail : |
|
|
Website: |
|
|
Area : |
650 Sq. mtrs.(16000 Sq. yards) |
PARTNERS
|
Name : |
Mr. Sahinder Sachdeva |
|
Designation : |
Partner |
|
Address : |
|
|
Date of Birth/Age : |
73 years |
|
Qualification : |
Under Graduate |
|
Experience : |
62 years |
|
|
|
|
Name : |
Mr. Shriram Sachdeva |
|
Designation : |
Partner |
|
Address : |
|
|
Date of Birth/Age : |
60 years |
|
Qualification : |
Graduate |
|
Experience : |
45 years |
|
|
|
|
Name : |
Mr. Sushil Sachdeva |
|
Designation : |
Partner |
|
Address : |
|
|
Date of Birth/Age : |
49 years |
|
Qualification : |
Graduate |
|
Experience : |
30 years |
|
|
|
|
Name : |
Mr. Vinay Sachdeva |
|
Designation : |
Partner |
|
Address : |
|
|
Date of Birth/Age : |
36 years |
|
Qualification : |
Graduate |
|
Experience : |
24 years |
|
|
|
|
Name : |
Mr. Davinder Sachdeva |
|
Designation : |
Partner |
|
Address : |
|
|
Date of Birth/Age : |
50 years |
|
Qualification : |
Graduate |
|
Experience : |
27 years |
|
|
|
|
Name : |
Mr. Ashok Grover |
|
Designation : |
Partner |
|
Address : |
|
|
Date of Birth/Age : |
53 years |
|
Qualification : |
Graduate |
|
Experience : |
30 years |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of Gents, Ladies and Children Footwear. |
|
|
|
|
Products : |
|
|
Exports : |
|
|
Products : |
Footwear |
|
Countries : |
Europe, |
|
|
|
|
Imports : |
|
|
Products : |
Machinery and Components |
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Selling : |
L/C, Cash or Credit (30 days) |
|
|
|
|
Purchasing : |
L/C, Cash or Credit (30 days), Sight against documents. |
PRODUCTION STATUS
|
Products |
|
|
|
Actual
Production |
|
Footwears |
|
|
|
4000 Pairs per
day |
GENERAL INFORMATION
|
Customers: |
v
Local and Foreigners v
Retailers v
End Users |
|
|
|
|
No. of Employees : |
600 (Office: 62; Other: 538) |
|
|
|
|
Bankers : |
Jammu and Kashmir Bank Limited, Hing Ki Mandi Branch, |
|
|
|
|
Facilities : |
Credit limit of Rs. 25.000 millions |
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Ralhan and Company Chartered Accountants |
|
Address : |
Sanjay Place, Agra, Uttar Pradesh, India |
|
|
|
|
Associates/Subsidiaries : |
Virola International, Address: A – 6, Line of Business: 100% Export of Footwears |
CAPITAL STRUCTURE
|
Capital Investment : |
|
|
Owned : |
Rs. 7.500 millions |
|
Borrowed : |
-- |
|
Total : |
Rs. 7.500 millions |
FINANCIAL DATA
[All figures are
in Rupees Millions]
|
Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover |
300.000 |
280.000 |
265.000 |
|
|
|
|
|
|
Profit for the year |
35.600 |
29.800 |
25.000 |
Group Turnover Rs.1140.000 Millions (Main Turnover is in Virola
International)
LOCAL AGENCY FURTHER INFORMATION
Company Profile:
Subject is a fast growing export
company, engaged in the manufacturing of Men's and Women's leather footwear.
There is a cluster of five factories under the Virola International. Always in
step with time, Virola International is recognized as one of the world's widest
reaching company, with global presence in more than 40 countries.
The footwear of Virola is synonymous with high fashion, supreme quality with
extreme comfort and great durability. Virola International is striving to
listen to the customers and clearly identify their footwear needs, and then
provide footwear that exceeds their customer’s expectations in terms of
quality, style and value.
Their products are designed specifically for the needs of International market.
Through the efficient sourcing and distribution of the products, they can
control the cost and quality at every step to ensure value to their customers.
They always
come forward in adopting latest technology, and committed to providing footwear
with excellent features. At their manufacturing plants, they have set up a PU
plant to manufacture PU moulding soles and shoes.
The PU plant is armed with Italian automatic 40 station PU machines.
They use best of the imported chemicals for producing PU soles for
in-house production. At the PU plant, soles and shoes are made simultaneously.
There is a facility also to produce colored soles at the same time. Shoe
produced in this PU injection moulding plant are very comfortable, lightweight
with good thermoplastic properties and are long lasting. At this PU plant, 3000
pairs of soles and shoes are produced per day.
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 exist on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence does 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. 40.84 |
|
|
1 |
Rs. 81.81 |
|
Euro |
1 |
Rs. 55.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
TOTAL |
|
54 |
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 |
|