MIRA
INFORM REPORT
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Report Date : |
28.05.2007 |
IDENTIFICATION DETAILS
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Name : |
S L LEATHERS
PRIVATE LIMITED |
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Registered Office : |
No. 28, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.04.1990 |
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Com. Reg. No.: |
18-19080 |
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CIN No.: [Company
Identification No.] |
U18209TN1990PTC019080 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES02529C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Leather Products. |
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 90000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established and reputed company having satisfactory track records. Trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The company can be
considered good for any normal business dealings. It can be regarded as a
promising business partner in a medium to long – run. |
LOCATIONS
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Registered Office : |
No. 28, |
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Tel. No.: |
91-44-25388385/24755001/24755002 |
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Fax No.: |
91-44-24755000 |
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E-Mail : |
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Area : |
1500 Sq. ft |
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Location : |
Rented |
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Factory 1 : |
58/59, |
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Tel. No.: |
91-44-22470651 |
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Tannery :
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Ranipet, Vellore District, Tamilnadu At Melvisharam, Ranipet, Vellore District, Tamilnadu |
DIRECTORS
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Name : |
Mr. Asokan Ramaswamy |
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Designation : |
Managing Director |
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Address : |
D-37, Anna Nagar, (East), Chennai - 600102,
Tamilnadu |
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Date of Birth/Age : |
12.05.1957 |
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Date of Appointment : |
20.04.1990 |
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Name : |
Mrs. Padma Asokan |
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Designation : |
Director |
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Address : |
D-37, Anna Nagar, (East), Chennai - 600102,
Tamilnadu |
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Date of Birth/Age : |
28.04.1961 |
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Date of Appointment : |
01.03.1991 |
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Name : |
Mr. M. Shanmugatnathan |
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Designation : |
Director |
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Address : |
D-37, Anna Nagar, (East), Chennai - 600102,
Tamilnadu |
KEY EXECUTIVES
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Name : |
Mr. R. Venkateswaran |
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Designation : |
B.Com., FCS, PGDCA, Company Secretary |
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Address : |
Upstairs, Sri Hari Complex, Adjacent to Kalpana
Kalyana Mandapam, |
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E-Mail : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Asokan Ramaswamy |
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48100 |
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Mrs. Padma Asokan Ramaswamy |
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500 |
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Mr. M. Shanmuganathan |
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400 |
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Total |
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49000 |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Leather Products. |
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Products : |
ŕ Sheep Leather ŕ Cow Leather ŕ Cow Calf
Leather ŕ
Goat Leather |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
L/C + Documents through Bank terms |
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Purchasing : |
L/C and Suppliers' Credit (upto 90 days) terms, Credit terms upto 90
days |
GENERAL INFORMATION
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Suppliers : |
ŕ Schill + ŕ Job SPA, ŕ Idir SRL, ŕ
Stoppani Sud SRL, |
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Customers : |
Wholesalers, Retailers and End Users ŕ E ŕ
Kora Trade SPA, |
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No. of Employees : |
35 |
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Bankers : |
Canara Bank, Overseas Branch, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. C. Sthalasayanam Chartered Accountant |
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Address : |
Vinayaka Nagar, 87, |
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Associates/Subsidiaries : |
ŕ Ram Leathers
Apparels, Chennai, Tamilnadu ŕ ŕ
Ram Knowledge Systems, Chennai, Tamilnadu |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs. 100/- each |
Rs. 5.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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49000 |
Equity Shares |
Rs. 100/- each |
Rs. 4.900
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4.900 |
4.900 |
4.900 |
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2] Share Application Money |
0.100 |
0.100 |
0.100 |
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3] Reserves & Surplus |
17.144 |
16.588 |
12.698 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
22.144 |
21.588 |
17.698 |
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LOAN FUNDS |
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1] Secured Loans |
79.748 |
74.194 |
53.847 |
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2] Unsecured Loans |
18.115 |
4.686 |
18.159 |
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TOTAL BORROWING |
97.863 |
78.880 |
72.006 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
120.007 |
100.468 |
89.704 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
41.148 |
41.855 |
43.946 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
106.873
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88.768 |
94.525 |
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Sundry Debtors |
15.860
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9.351 |
11.295 |
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Cash & Bank Balances |
0.748
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0.661 |
0.164 |
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Other Current Assets |
0.000
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0.000 |
7.064 |
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Loans & Advances |
16.787
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13.540 |
13.275 |
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Total Current Assets |
140.268
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112.320 |
126.323 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
59.206
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52.686 |
79.889 |
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Provisions |
2.203
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1.021 |
0.676 |
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Total Current Liabilities |
61.409
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53.707 |
80.565 |
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Net Current Assets |
78.859
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58.613 |
45.758 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
120.007 |
100.468 |
89.704 |
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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 |
250.775 |
254.874 |
225.308 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
250.775 |
254.874 |
225.308 |
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Profit/(Loss) Before Tax |
5.619 |
6.047 |
3.143 |
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Provision for Taxation |
2.203 |
1.021 |
0.000 |
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Profit/(Loss) After Tax |
3.416 |
5.026 |
3.143 |
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Total Earnings |
100.856 |
77.998 |
NA |
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Total Imports |
11.038 |
18.448 |
NA |
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Expenditures : |
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Total Expenditure |
245.156 |
254.827 |
220.502 |
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 |
(%) |
1.36
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1.97 |
1.39 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.24
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2.37 |
1.39 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.10
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3.92 |
1.84 |
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Return on Investment (ROI) (PBT/Networth) |
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0.25
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0.28 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
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7.19
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6.14 |
8.62 |
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Current Ratio (Current Asset/Current Liability) |
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2.28
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2.09 |
1.56 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was originally started during 1986 as "Standard
Leathers" at Chennai in Tamilnadu.
It was converted into a private limited liability company with effect
from 20.04.1990.
BUSINESS
The company's monthly production of finished leathers is approximately
350000 sq.ft.
Bankers Charges
Report as per Registry
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Name of the company |
S L LEATHERS PRIVATE LIMITED |
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Presented By |
S L LEATHERS PRIVATE LIMITED and Canara Bank,
Overseas Branch, Chennai – 600002 |
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1) Date and description of instrument creating the change |
29.01.2001 Common
Hypothecation Agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 18.500
Millions comprising of the following together with interest, costs, charges
and other expenses which may be debited to the said accounts from time to
time.
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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 |
Prime Security : Hypothecation of raw hides and skins,
work in process, stores, finished goods and chemicals stored at 15/3, MBT
Road Cross, Ranipet 632401 and 28 E. K. Guru Stret, Periamet, Chennai – 3 Collateral Security : Plant and Machinery valued at Rs. 2.354
Millions as per ABS as on 31.03.2000 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest – CC –
15 % p.a. PC – 10 % p.a. FDB/FBE 10%
& ILC/FLC – 18.25 % p.a. TL – 12.75 % p.a. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank Overseas Branch Chennai – 600002 |
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6) Date and brief description of instrument modifying the charge |
27.08.2005 Supplemental
Agreement to Common Hypothecation Agreement Deed of
Hypothecation Re : Machinery |
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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 overall Credit
Limits made available to the company has been modified from Rs. 103.164
Millions to Rs. 90.7 Millions as under
All the existing
securities, Primary, Collateral including those acquired out of the enhanced
credit facility and out of TL including Drums – 6 Nos. leather setting out
Machine and Gear Box 1 No. Buffing and De-dusting Machine – 1 No. and Hand
spray Booth – 1 No. stored at No. 33, Anna Salai, Nagalkeni, Chrompet,
Chennai – 600044, or whosesoever continue to cover the enhanced credit limits
together with interest and all other monies payable to Canara Bank, Overseas
Branch, Chennai The other
existing terms and conditions of the original Charges and subsequent
modification continue to remain the same.
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
90287652 |
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Corporate
identity number of the company |
U18209TN1990PTC019080 |
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Name of the
company |
S L LEATHERS
PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
No. 28, |
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Type of charge |
Book debts Floating charge Others |
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Particular of
charge holder |
Canara Bank, Overseas Branch, |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental
agreement to common Hypothecation Agreement for opening LC |
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Date of
instrument Creating the charge |
02.11.2006 |
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Amount secured by
the charge |
Rs. 93.700
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per the
agreement enclosed [Rate of interest is subject to change by the bank from
time to time] |
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.40.60 |
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1 |
Rs.80.65 |
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Euro |
1 |
Rs.54.55 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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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 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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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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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
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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 |
|
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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