MIRA INFORM REPORT

 

 

Report Date :

18.09.2007

 

IDENTIFICATION DETAILS

 

Name :

FLORENCE SHOE COMPANY  PRIVATE LIMITED

 

 

Registered Office :

69, E. V. K. Sampath Road, Vepery, Chennai – 600 007, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

28.08.1978

 

 

Com. Reg. No.:

18 -7584

 

 

CIN No.:

[Company Identification No.]

U19129TN1978PTC007584

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEF03160D

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Leather Shoe Uppers and Full Shoes.

 

 

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

 

Maximum Credit Limit :

USD

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed company having fine track. 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 at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

Florence Centre 69, E. V. K. Sampath Road, Vepery, Chennai – 600 007, Tamilnadu, India

Tel. No.:

91-44-25366999/25365199/52606062/52606092/ 42606062/25365199

Fax No.:

91-44-25361092/28260809/52606082/52606062/42606082

E-Mail :

florence@vsnl.com,

centre@florence.co.in

Website :

http://www.florence.co.in

Area :

5000 Sq. ft

Location :

Owned

 

 

Corporate Office :

Florence Centre, 12, College Road, Chennai – 600 006, Tamilnadu

 

 

Factory 1 :

SHOE DIVISION

 

Vellore, Tamilnadu

 

LEATHER DIVISION (TANNERY)

 

Ambur, Tamilnadu

 

DIRECTORS

 

Name :

Mr. P R Aqeel Ahmed

Designation :

Managing Director

Address :

No.16, Sterling Road, 1st Cross Street, Chennai – 600 034

Date of Birth/Age :

17.05.1964

Date of Appointment :

31.03.1995

 

 

Name :

Mr. Ishrath Khatoon

Designation :

Director

Address :

No.16, Sterling Road, 1st Cross Street, Chennai – 600 034

Date of Birth/Age :

18.11.1968

Date of Appointment :

31.09.1996

 

 

Name :

K Iqbal Ahmed

Designation :

Director

Address :

B-3, Alsa Lynwood, #26, E V K Sampath Road, Vepery, Chennai – 600 007

Date of Birth/Age :

10.05.1947

Date of Appointment :

29.09.2001

 

 

Name :

Mr. N Isfar Ahmed

Designation :

Director

Address :

No.8, Kumarappa Street, Periamat, Chennai – 600 003

Date of Appointment :

30.09.2004

Date of Cessation:

30.09.2005

Name :

 

Designation :

 

Address :

 

Date of Birth/Age :

 

Qualification :

 

Experience :

 

Date of Appointment :

 

 

 

KEY EXECUTIVES

 

Name :

Mr. S Saraskumar and Associates

Designation :

Company Secretary

Address :

25/1, Karnan Street, 1st floor, Vathiyar Thottam, Kodambakkam, Chennai – 600 024

Tel No:

91-44-24832294

E-Mail:

www.sarask@vsnl.net

 

 

 

 

 

 

Name :

 

Designation :

 

Address :

 

Date of Birth/Age :

 

Qualification :

 

Experience :

 

Date of Appointment :

 

 

 

Name :

 

Designation :

 

Address :

 

Date of Birth/Age :

 

Qualification :

 

Experience :

 

Date of Appointment :

 

 

 

Name :

 

Designation :

 

Address :

 

Date of Birth/Age :

 

Qualification :

 

Experience :

 

Date of Appointment :

 

 

 

Name :

 

Designation :

 

Address :

 

Date of Birth/Age :

 

Qualification :

 

Experience :

 

Date of Appointment :

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. P R Aqeel Ahmed

 

18916

Mrs. Ishrath Khatoon

 

16084

Master P R Mohammed Raiyan

 

5000

Master P R Mohammed Sannam

 

5000

Ms. Lina Mariam

 

5000

 

Total

50000

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Leather Shoe Uppers and Full Shoes.

 

 

Products :

v      Finished Leather

v      Full Shoes

v      Shoes Uppers

 

 

Exports:

 

Countries:

Denmark, Italy, Portugal, England, Japan, Germany, Europe, USA, Australia and Cyprus.

 

 

Line of Business :

Manufacturer of Leather, Shoe Uppers.

 

 

Products :

 

 

 

Brand Names :

 

 

 

Agencies Held :

 

 

 

Exports :

 

Products :

 

Countries :

 

 

 

Imports :

 

Products :

 

Countries :

 

 

 

Terms :

 

Selling :

 

 

 

Purchasing :

 

 

PRODUCTION STATUS

 

Particulars

 

 

 

Actual Production

Shoe uppers and full shoes in pairs in 2005

 

 

 

1107456 Pairs

 

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

325

 

 

Bankers :

v      State Bank of India, Overseas Branch, Rajaji Salai, Chennai – 600 001, Tamilnadu

 

v      State Bank of India, Leather International Branch, Kilpauk, Chennai – 600010

 

 

Facilities :

--

 

 

Banking Relations :

Good

 

 

Auditors :

R. Venkatramani & Company

Chartered Accountants

Address:

13 Thiru Vi Ka 3rd Street, Royapettah High Road, Mylapore, Chennai – 600010

 

 

Associates/Subsidiaries :
  • Abdul Shukoor & Company

 

Activity : This  firm is engaged in the tanning of finished leather and  the entire production is utilised by Florence Shoe Company Limited

 

 

 

Suppliers :

 

 

 

Customers :

 

 

 

No. of Employees :

 

 

 

Bankers :

State Bank of India

 

 

Facilities :

 

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

 

Address :

 

Tel. No.:

 

Mobile No.:

 

Fax No.:

 

E-Mail :

 

 

 

Memberships :

 

 

 

Collaborators :

 

 

 

Associates/Subsidiaries :

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

100,000

Equity Shares

Rs.100/- each

Rs.10.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

50,000

Equity Shares

Rs.100/- each

Rs.5.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

5.000

5.000

5.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

79.639

77.011

67.908

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

84.639

82.011

72.908

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

4.463

4.315

0.995

 

 

 

 

TOTAL

89.102

86.326

73.903

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

225.388

204.022

126.170

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.575

0.500

0.500

DEFERREX TAX ASSETS

0.029

0.029

0.029

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
153.211

84.883

76.512

 

Sundry Debtors
41.105

28.258

16.204

 

Cash & Bank Balances
20.479

22.058

11.337

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
50.571

40.553

34.275

Total Current Assets
265.366

175.752
138.328

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
392.540

288.260

191.124

 

Provisions
9.716

5.716

 

Total Current Liabilities
402.256

293.976

191.124

Net Current Assets
(136.890)

(118.225)

(52.796)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

89.102

86.326

73.903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

1209.513

1024.257

677.100

Other Income

0.000

0.000

0.000

Total Income

1209.513

1024.257

677.100

 

 

 

 

Profit/(Loss) Before Tax

6.876

15.522

9.368

Provision for Taxation

4.248

6.420

2.595

Profit/(Loss) After Tax

2.628

9.102

6.773

 

 

 

 

CIF Value of Imports

222.735

232.721

573.412

 

 

 

 

FOB

1085.036

916.959

175.127

 

 

 

 

Total Expenditure

NA

1008.735

667.732

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2006

30.09.2006

31.12.2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
 

 

 

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

 

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

 

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

 

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

 

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

 

 

STOCK PRICES

 

Face Value

Rs.

High

Rs.

Low

Rs.

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Name of the company

FLORENCE SHOE COMPANY LIMITED

Presented By

STATE BANK OF INDIA

Leather International Branch, Chennai – 600 010

1) Date and description of instrument creating the change

11th April 1980

  1.  Agreement for Hypothecation of Goods
  2. Agreement for hypothecation of book debts

2) Amount secured by the charge/amount owing on the securities of charge

Rs.3.500 millions

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 stocks of Finished Leather, Semi  -Finished and Finished Shoe Upper and Components and Other Current Assets, etc.

4) Gist of the terms and conditions and extent and operation of the charge.

Margin: 25%

Rate of Interest on Packing Credit 11% p.a.

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 – 600 010

6) Date  and brief description of instrument modifying the charge

18th February 2005

  1. Supplemental Agreement of loan for increase in the overall Limit in Form C.1-A
  2. Supplemental Agreement of hypothecation of goods and assets for increase in the overall limit in form C.2 –A
  3. Supplemental Agreement of Pledge of goods and assets for increase in the overall limit in Form C.3 –A
  4. Letter regarding the grant of individual limits within the overall limit in Form C.5 
  5. Extension of Equitable Mortgage by deposits of title deeds of the Company’s immovable property.

       [Letter evidencing the said deposits is enclosed]

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.

Effect of Modification

 

 

The concern is in trade terms with :

 

v      N. M. Zackriah & Company, 6, Hunters Road, Choolai – 600 105, Tamilnadu

 

v      Farida Classic Shoes, Poonamalle High Road, Chennai – 600 084, Tamilnadu

 

 

 

 

 

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.

UK Pound

1

Rs.

Euro

1

Rs.

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

 

PAID-UP CAPITAL

1~10

 

OPERATING SCALE

1~10

 

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

 

--PROFITABILIRY

1~10

 

--LIQUIDITY

1~10

 

--LEVERAGE

1~10

 

--RESERVES

1~10

 

--CREDIT LINES

1~10

 

--MARGINS

-5~5

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

 

--LITIGATION

YES/NO

 

--OTHER ADVERSE INFORMATION

YES/NO

 

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

 

--EXPORT ACTIVITIES

YES/NO

 

--AFFILIATION

YES/NO

 

--LISTED

YES/NO

 

--OTHER MERIT FACTORS

YES/NO

 

TOTAL

 

 

 

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.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions