MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
GOOD LEATHER SHOES PRIVATE LIMITED |
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Registered Office : |
47, Thiruvengadam Street, Periamet, Chennai – 600003, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.08.1994 |
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Com. Reg. No.: |
18-28398 |
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CIN No.: [Company
Identification No.] |
U1920TN1994PTC028398 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEG05011G |
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Legal Form : |
Private limited liability company |
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Line of Business : |
Manufacturer, Exporter and Importer of Cow and Cow Calf Finished Leather, Leather Shoe Uppers, Leather Footwear, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 138720 |
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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 having substantial means of their own. Their trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions |
LOCATIONS
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Registered/Administrative Office : |
47, Thiruvengadam Street, Periamet, Chennai – 600003, Tamil Nadu, India |
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Tel. No.: |
91-44-25368090/5365955/5380512/25611255/25611090 |
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Fax No.: |
91-44-25380512/25610512 |
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E-Mail : |
goodledr@md4.vsnl.net.in |
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Website : |
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Area : |
Owned |
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Factory 1 : |
49, Goparasanallur, Puliampedu, Noombal Post, Chennai – 600077, Tamil Nadu, India Tel. No. 91-44-25380512/26272759/26496310 158, Thiruneermalai Road, Chrompet, Chennai – 600044, Tamil Nadu, India Tel. No. 91-44-22412727 Fax No. 91-44-25380512 No. 702/6, M. B. T. Road Cross, Rainpet Tamil Nadu- Tannery |
DIRECTORS
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Name : |
Mr. K.E. Ramaswamy Naidu |
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Designation : |
Director |
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Date of Birth/Age : |
15.12.1924 |
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Address : |
34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. R. Vijayan |
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Designation : |
Managing Director |
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Date of Birth/Age : |
01.06.1953 |
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Address : |
34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. R. Babu |
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Designation : |
Director |
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Date of Birth/Age : |
16.03.1969 |
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Address : |
34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. R. Sekaran |
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Designation : |
Director |
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Date of Birth/Age : |
28.05.1960 |
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Date of Appointment : |
24.08.1994 |
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Address : |
34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Name : |
Mr. R. Perumal |
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Designation : |
Director |
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Date of Birth/Age : |
22.03.1962 |
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Address : |
34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. R. Munikannan |
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Designation : |
Director |
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Date of Birth/Age : |
28.05.1970 |
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Address : |
34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mr. K. Govinda Raju |
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Designation : |
Director |
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Date of Birth/Age : |
01.07.1946 |
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Address : |
34, Second East Main
Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India |
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Date of Appointment : |
24.08.1994 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
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Mr. K. E. Ramaswamy Naidu |
1000 |
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Mr. K. R. Vijayan |
1000 |
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Mr. K. R. Babu |
600 |
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Mr. R. Sekaran |
600 |
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Mr. R. Perumal |
600 |
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Mr. K. R. Munikannan |
600 |
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Mr. K. Govinda Raju |
600 |
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Total |
5000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of Cow and Cow Calf Finished Leather, Leather Shoe Uppers, Leather Footwear, etc. |
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Exports : |
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Products : |
Finished Leather |
GENERAL
INFORMATION
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Customers : |
Wholesalers and Retailers |
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No. of Employees : |
175 persons -- 20 persons in office, 5 persons in branch and 150 persons in factory |
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Bankers : |
State Bank of India Commercial Branch, 1st Floor, Palar Towers, Walajapet- 632513, Tamilnadu, India |
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Banking Relations
: |
Satisfactory |
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Auditors : |
K. V. Chandramouli and Company, Chartered Accountants, 36, Thennamaram Street, Vellore – 632001, Tamil Nadu, India |
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Associates : |
· Splendid Leather Company (SLC) Line of business : Processing and Export of Goat kid Finished Leather · Venkat Shoes Private Limited (VSPL) 47, Thiruvengadam Street, Periamet, Chennai – 600003, Tamil Nadu, India Line of business : Manufacture and Export of Shoe Uppers · Good Leather Company (GLC) Line of Business : Processing and Export of Cow & Cow Calf Finished Leather · Splendid Leather Company (SLC) Line of Business : Processing and Export of Goat kid Finished Leather |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000 |
Equity Shares |
Rs.100/- each |
Rs. 0.500 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
197500 |
Equity Shares |
Rs.100/- each |
Rs. 19.750 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 |
19.750 |
0.500 |
0.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
14.930 |
27.863 |
0.109 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
22.798 |
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NETWORTH |
34.680 |
28.363 |
23.407 |
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LOAN FUNDS |
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1] Secured Loans |
78.863 |
29.323 |
15.223 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
78.863 |
29.323 |
15.223 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
113.543 |
57.686 |
38.630 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
31.292 |
10.647 |
6.772 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
2.723 |
1.859 |
2.503 |
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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 |
0.000 |
0.000 |
18.225 |
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Sundry Debtors |
0.000 |
0.000 |
22.858 |
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Cash & Bank Balances |
0.000 |
0.000 |
1.819 |
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Other Current Assets |
139.919 |
67.557 |
3.734 |
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Loans & Advances |
0.000 |
0.000 |
0.176 |
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Total
Current Assets |
139.919
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67.557 |
46.812 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
60.391 |
22.377 |
0.000 |
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Provisions |
0.000 |
0.000 |
17.457 |
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Total
Current Liabilities |
60.391
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22.377 |
17.457 |
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Net Current Assets |
79.528 |
45.180 |
29.355 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
113.543 |
57.686 |
38.630 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other
income]
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515.329 |
296.422 |
130.995 |
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Profit/(Loss) Before Tax
|
6.317 |
4.954 |
4.438 |
Provision for Taxation
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-- |
-- |
-- |
Profit/(Loss) After Tax
|
6.317 |
4.954 |
4.438 |
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Export Value
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N.A. |
N.A. |
102.183 |
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Total Expenditure
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509.012 |
291.467 |
126.558 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
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(%)
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1.22
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1.67
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0.003
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Net Profit Margin
(PBT/Sales) |
(%) |
1.22
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1.67
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4.343
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
3.68
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6.33
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7.912
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Return on Investment (ROI)
(PBT/Networth) |
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0.18
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0.17
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7.287
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Debt Equity Ratio
(Total
Liability/Networth) |
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4.01
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1.82
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53.661
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Current Ratio
(Current
Asset/Current Liability) |
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2.31
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3.01
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2.681
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LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
GOOD LEATHER
SHOES PRIVATE LIMITED |
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Presented
By |
Sri K. R. Vijayan, Managing
Director |
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1) Date and description of instrument creating the change |
a. Guarantee Agreement for Small Industrial Advances dated 04.12.2002 granted to M/s. Good Leather Company |
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2) Amount secured by the charge/amount owing on the securities of charge |
Corporate Guarantee for the financial assistance granted to M/s. Good Leather Company totaling to Rs. 5.200 millions together with Interest, Costs, Charges and other expenses which may be debited to the account 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 |
Corporate Guarantee extended to cover the entire assets of the company valued at Rs. 15.900 millions as on 31.03.2002 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The guarantee is a continuing guarantee |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India Commercial Branch, 1st Floor, Palar Towers, Walajapet – 632513, Vellore District |
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6) Date and brief description of instrument modifying the charge |
Guarantee Agreement for small industrial advances dated 06.07.2005 |
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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 corporate guarantee extended for the revised Credit facilities granted to M/s. Good Leather Company, by State Bank of India, Commercial Branch, Walajapet, stands revised upwards from Rs. 5.200 millions to Rs. 9.200 millions |
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Name of the company |
GOOD LEATHER
SHOES PRIVATE LIMITED |
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Presented
By |
Sri K. R. Vijayan, Managing
Director |
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1) Date and description of instrument creating the change |
Guarantee agreement for industrial advances dated 04.12.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Facilities granted to M/s. Good Leather Company totaling to Rs. 14.500 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 |
Corporate Guarantee extended to cover the entire assets of the company valued at Rs. 15.900 millions as on 31.03.2002 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The guarantee is a continuing guarantee |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India Commercial Branch, 1st Floor, Palar Towers, Walajapet – 632513, Vellore District |
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6) Date and brief description of instrument modifying the charge |
Guarantee agreement dated 18.07.2003 |
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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 corporate guarantee extended for the revised credit facilities granted to M/s. Good Leather Company, by State Bank of India, Walajapet, stands revised upwards to Rs. 14.500 millions to Rs. 28.000 millions |
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Name of the
company |
GOOD LEATHER
SHOES PRIVATE LIMITED |
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Presented
By |
Sri K. R. Vijayan, Managing Director |
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1) Date and description of instrument creating the change |
General agreement for the grant of small industrial advances and hypothecation of movables, book debts and other assets dated 11.09.2003 Agreement for the grant of Small Industrial Advances dated 11.09.2003 Guarantee agreement for industrial advances dated 11.09.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
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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 |
Primary Security a. Export Packing
Credit pledge of raw materials, stock in process, finished goods, book debts, consumable stores and other current assets b. Foreign Bill
Negotiation Hypothecation of exports receivables covered by the documents of title to goods of the bills discounted/purchased/negotiated Pledge of raw materials, stock in process, finished goods, book debts, consumable stores and spares and other current assets COLLATERAL SECURITY The following properties belonging to the directors of the company are given as collateral security for the above mentioned credits : > EM of house property situated at 34, II East Main Road, Gandhi Nagar, Vellore measuring 2.40 acres > EM of land and building with godown facility at Sr. No. 585, Door No. 43 to 51, Thiruvalam Road, Vellore > EM of Residential Plot No. 25, DTP Lay out 68/1981 West SF No. 364 Pinji Village, Ranipet > EM of Land at S.F. No. 85-1 C/2, 85-1E/1, 85-1D/2, M.B.T. Road, Thiruvalam Road, Thiruvalam Road, Vellore > EM of Land abd Building at 702/6B, M.B.T. Road, Cross, Ranipet GUARANTEE Personal guarantee of all the directors Corporate guarantee of Good Leather Company Corporate Guarantee of Splendid Leather Company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Periodicity of Sanction : 12 months Margin : 25% Other terms and conditions as specified in Annexure ‘A’ of Sanction Letter given by the State Bank of India |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India Commercial Branch, 1st Floor, Palar Towers, Walajapet – 632513, Vellore District |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
WEBSITE DETAILS
Good Leather Company, the Flagship Firm, was found in May 1988, Honest and Straight forward articulation of the founder family helped
Set a clear 'vision'. Commitment, dedication and involvement in work has been the key to their slow and steady growth.
High quality products. Diverse and increasing product range. Prompt delivery. Customer satisfaction.
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Products |
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Good Leather Company: |
Processors of Cow Hide and Cow Calf. |
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Splendid Leather Company: |
Processors of Cow Hide and Cow Calf. |
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Good Leather Shoes Private Limited: |
Manufacturers of Leather Shoe Uppers and . |
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Venkat Shoes Private Limited : |
Manufacturers of Leather Shoe Uppers. |
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.39.37 |
|
UK Pound |
1 |
Rs.81.82 |
|
Euro |
1 |
Rs.56.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
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--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 |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|