MIRA
INFORM REPORT
|
Report Date : |
07.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
RABIA LEATHER
INDUSTRIES LIMITED |
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Registered
Office : |
KH House, 2 T N
Guru Road, Choolai, Chennai – 600 112, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
03.05.1985 |
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Com. Reg. No.: |
18-11821 |
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CIN No.: [Company
Identification No.] |
U19129TN1985PTC011821 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
CHER00234D |
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Legal Form : |
Private Limited
Liability Company |
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Line of
Business : |
Manufacturers,
Exporter and Importer of Leather Garments, Leather Handbags, Leather Wallets
and Accessories |
RATING &
COMMENTS
|
MIRA’s Rating
: |
A |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
|
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 : |
USD 900000 |
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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 company having fine track. Directors are reported as experienced,
respectable and resourceful businessmen. Their trade relations are fair.
General financial position is good. Payments are usually correct and as per
commitments. The company can be considered good for any normal business
dealings. It can be regarded as a promising business partners in a medium to
long run. |
LOCATIONS
|
Registered
Office : |
KH House, 2 T N
Guru Road, Choolai, Chennai – 600 112, Tamilnadu, India |
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Tel. No.: |
91- 44-25322731 |
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Fax No.: |
91- 44-25321185 |
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E-Mail : |
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Website : |
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Corporate
Office: |
KH House, 2 T N Guru
Road, Cholaimedu, Chennai – 600 112, Tamilnadu, India |
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Tel. No.: |
91- 44-25322731 |
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Fax No.: |
91- 44-25321185 |
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E-Mail : |
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Factory1: |
Ranipet Bye Pass Road,
Melvisharam, Ranipet, Tamilnadu, India |
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Factory 2: |
6 S P Developed
Plots, Guindy, Chennai – 600 042, Tamilnadu, India |
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Factory 3 : |
2, Hunters Road,
Choolai, Madras-600112, Tamilnadu, India |
DIRECTORS
|
Name : |
Mr. Mohamed Hasim |
|
Designation : |
Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
01-09-1939 |
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Date of
Appointment : |
03.05.1985 |
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Name : |
Mr. M. Mohamed Shameem |
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Designation : |
Chairman and Managing Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
04-04-1962 |
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Date of
Appointment : |
03.05.1985 |
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Name : |
Mr. M. Mohamed Thameem |
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Designation : |
Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
21-08-1963 |
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Date of
Appointment : |
03.05.1985 |
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Name : |
Mr. M. Mohamed Ibrahim |
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Designation : |
Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
14-09-1969 |
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Date of
Appointment : |
16.03.1998 |
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Name : |
Mr. M. Zakir Hussain |
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Designation : |
Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
12-12-1971 |
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Date of
Appointment : |
16.03.1998 |
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Name : |
Mr. M. Abdul Wahab |
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Designation : |
Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
10-12-1973 |
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Date of
Appointment : |
16.03.1998 |
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Name : |
Mr. M. Ashraf Ali |
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Designation : |
Director |
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Address : |
23, Mara Street, Melvisharam, Ranipet – 632509 NA District, Tamilnadu |
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Date of
Birth/Age : |
05-11-1975 |
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Date of
Appointment : |
16.03.1998 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders |
|
No. of Shares |
|
Mr. M. Mohammed
Thameem |
|
5900 |
|
Mr. M. Mohammed
Ibrahim |
|
6000 |
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Mr. M. Zakir
Hussain |
|
5900 |
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Mr. M. Abdul
Wahab |
|
5900 |
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Mr. M. Ashraf Ali |
|
5900 |
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Mr. Mohammed
Shameem |
|
5900 |
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Ms. Mumtaz Begum |
|
20 |
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Ms. M. Hajira
Banu |
|
2950 |
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Ms. Rabia Banu |
|
2830 |
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Ms. M. Khutaija
Banu |
|
2950 |
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Ms. M.
Ameerinnisa |
|
2950 |
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Mr. M. Mohammed
Hashim |
|
800 |
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Total |
|
48000 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturers,
Exporter and Importer of Leather Garments, Leather Handbags, Leather Wallets
and Accessories |
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|
|
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Products with
ITC Code : |
v Leather Garments - 420310.01 v Leather Hand Bags - 420221.01 v Leather Wallets - 420231.02 v
Textile Bags |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
|
|
|
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Leather Garments |
Pcs. |
35000
|
50000 |
17734 |
|
Leather wallets |
Pcs. |
300000 |
300000 |
199254 |
|
Other leather
goods |
Pcs. |
300000 |
1000000 |
1406246 |
|
Textile bags |
Pcs. |
-- |
-- |
11368 |
GENERAL
INFORMATION
|
No. of
Employees : |
Around 650 |
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Bankers : |
State Bank of
India Leather International
Branch, 177/1 P. H. Road, Kilpauk, Chennai – 600 010, Tamilnadu, India |
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Banking Relations : |
Good |
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Auditors : |
S. Dhanyakumar
& Company Chartered
Accountants 5, South Boag
Road, T Nagar, Chennai- 600 017,
Tamilnadu, India |
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Sister
Concerns : |
·
M. A. Khizar
Hussain and Sons ·
ATH Leder
Fabrik ·
K. H. Arind
Limited ·
K. H. Group
of Companies |
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Subsidiary : |
K. H. Exports
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs. 100/- |
Rs. 5.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48000 |
Equity Shares |
Rs.100/- |
Rs. 4.800 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS
FUNDS |
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|
|
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|
1] Share Capital |
4.800 |
4.800 |
4.800 |
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2] Reserves &
Surplus |
228.795 |
220.698 |
198.613 |
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NETWORTH
|
233.595 |
225.498 |
203.413 |
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|
LOAN FUNDS |
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|
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|
1] Secured Loans |
227.009 |
147.234 |
91.678 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
227.009 |
147.234 |
91.678 |
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DEFERRED TAX
LIABILITIES |
21.800 |
21.500 |
17.000 |
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TOTAL
|
482.404 |
394.232 |
312.091 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
202.101 |
145.640 |
143.147 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
0.541 |
0.541 |
0.541 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
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Inventories
|
210.110
|
170.502
|
213.983
|
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Sundry Debtors
|
116.289
|
29.338
|
55.281
|
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Cash & Bank Balances
|
45.707
|
41.838
|
11.073
|
|
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Other Current Assets
|
0.000
|
0.000
|
0.000
|
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Loans & Advances
|
79.339
|
88.557
|
29.388
|
Total Current Assets
|
451.445
|
330.235
|
309.725
|
|
|
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|
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Less :
CURRENT LIABILITIES & PROVISIONS
|
189.763
|
105.224
|
160.522
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Total Current Liabilities
|
189.763
|
105.224
|
160.522
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Net Current Assets
|
261.682
|
225.011
|
149.203
|
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MISCELLANEOUS EXPENSES
|
18.080 |
23.040 |
19.200 |
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TOTAL
|
482.404 |
394.232 |
312.091 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2004 |
Sales Turnover [including other
income]
|
|
|
711.592 |
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Profit/(Loss) Before Tax
|
|
|
21.150 |
Provision for Taxation
|
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|
(4.800) |
Profit/(Loss) After Tax
|
|
|
16.350 |
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Export Value
|
|
|
658.388 |
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Import Value
|
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|
191.147 |
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Total Expenditure
|
|
|
690.442 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2006 |
31.03.2004 |
PAT / Total Income
|
(%)
|
NA
|
NA |
2.29 |
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Net Profit Margin
(PBT/Sales) |
(%) |
NA
|
NA |
2.97 |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
NA
|
NA |
4.66 |
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Return on Investment (ROI)
(PBT/Networth) |
|
NA
|
NA |
0.10 |
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Debt Equity Ratio
(Total
Liability/Networth) |
|
1.78
|
1.12 |
2.32 |
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Current Ratio
(Current
Asset/Current Liability) |
|
2.38
|
3.14 |
1.93 |
LOCAL AGENCY
FURTHER INFORMATION
Form
8 Particular for creation or modification of charges
|
Name of the company |
RABIA LEATHER
INDUSTRIES LIMITED |
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Presented By |
State Bank of
India Leather
International Branch, Chennai-600010 |
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1) Date and description of instrument creating the change |
All agreement are
dated 03.07.1989 Articles of
agreement for medium term loan for Rs.2.500 millions Agreement for
cash credit in form L for Rs.6.200 millions comprising of : Export packing
credit Rs.2.400 millions Foreign bill
discounting : Rs.2.000 millions Import letter of
credit : Rs.0.500 millions Bank Guarantee :
Rs.0.800 millions Agreement for
cash credit in form K for Rs.5.200 millions comprising above limit |
||||||||||||||||||||||||
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs.7.700 millions Medium Term Loan
: Rs.2.500 millions Cash credit :
Rs.5.200 millions |
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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
all existing machineries and new machineries t be purchased in future and
hypothecation of all debts and assets of the company. |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
The term loan is
repayable in equal monthly installments. |
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5) Name and Address and description of the person entitled to the
charge. |
State Bank of
India Leather
International Branch, MVJ Towers, 177/1,
Poonamalee High Road, Kilpauk, Chennai-600010 |
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6) Date and brief description
of instrument modifying the charge |
All agreements
dated 26.03.2003 and pertaining to single charge. Supplemental
agreement of hypothecation of goods and assets for increase in the overall
limit in Form CZ-A Letter regarding
grant of individual limit within overall limit in Form C5 Supplemental
agreement of loan for increase in overall limit. Supplemental
agreement of pledge of goods and assets in for increase in the overall limit Letters
evidencing extension of equitable mortgage by way of deposit of title deeds
on 26.03.2003 |
||||||||||||||||||||||||
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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. |
The total limit
now have been enhanced from Rs.200.000 millions to Rs.240.000 millions as er
details given below : (Rs. In millions)
Primary Security
: Hypothecation of
finished leather, stock in process, chemicals, raw hides/skins, finished
goods and accessories to cover the above enhanced limit of Rs.240.000
millions. Collateral
Security : The following properties
are now collaterally secured by way of extension of equitable mortgage by way
of deposit of title deeds to cover the above enhanced limit of Rs.240.000
millions All that piece
and parcel of land bearing Plot No.2 (NP) at TVK Industrial Estate, Guindy in
Mambalam, Guindy Taluk, measuring 0.74 acres comprised in T.S. No.15 part and
17 part, Block No.2, Alandur Hamlet of Adayar bounded on North by Plot No.5
(NP), South by 80 Ft. Road, East by No.3 (NP) and West by Plot No.1 situated. |
Profile
In leather goods
& accessories, Rabia is unmatched in its production capalities and design
expertise. The sprawling new factory in Chennai has a built-up area of 125,000
sq. ft.
The Rabia product range includes handbags, belts, garments, wallets and small
leather goods, and upholstery covers An in-house design studio develops
concepts in line with international trends, and works on entire collections.
Rabia has a 900
member team and an annual turnover of US$ 9 million Manufacturing 10,000 bags a
month, with an emphasis on innovative styling, unique leathers and woven
designs, the wide range of bags wear labels including Helen Kaminski, Myers,
Witchery, Oriente, BCBG, Russel & Broomley and Next Formal,casual and
intricately crafted belts find buyers in Cole-Haan, Abercrombic & Fitch and
JCrew Jackets, Vests, Skirts and other garments, desifned in a wide variety of
styles and colors to meet seasonal fashion requirements are popular with Wilson
of USA, Essebi and DIBI of Italy, and leading Spanish brands Rabia produces
over 5000 wallets and Small Leather Goods every month.
The Buff and calf leather wallets are for Coach, Cole-Haan, Espirit, Next and
JCrew. And in a recent development, Rabia has started producted uphostery
covers for Ikea.
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.44.44 |
|
UK Pound |
1 |
Rs.85.89 |
|
Euro |
1 |
Rs.58.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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 |
|