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MIRA
INFORM REPORT
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Report Date : |
22.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
EURO SAFETY FOOTWEAR (INDIA) PRIVATE LIMITED |
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Registered Office : |
60, New Raja Ki Mandi Agra, Agra – 282 001, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.12.2004 |
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Com. Reg. No.: |
029359 |
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CIN No.: [Company
Identification No.] |
U19201UP2004PTC029359 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AGRE10436G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and exporter of shoes uppers and shoe accessories like PVC and soles, leather safety footwear |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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. |
Small |
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Maximum Credit Limit : |
USD 75570 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a new company and yet to established track records. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. However, as the subject is a new company, it can be considered for any business dealings on safe and secured trade terms and conditions. |
LOCATIONS
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Registered Office : |
60, New Raja Ki Mandi Agra, Agra – 282 001, Uttar Pradesh,
India. |
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E-Mail : |
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Website : |
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Area : |
500 sq. mtrs. |
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Corporate Office/ Works : |
12th KM. Agra – Mathura Road, Artoni, Agra – 282 007, Uttar Pradesh, India |
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Tel. No.: |
91.562-2640374 |
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Fax No.: |
91-562-2640375/ 2530116 |
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E-Mail : |
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Other Office : |
B - 49/4 B – 54/2 B - 54/3 Epip, Shastripuram, Agartala – 282 007,
Uttar Pradesh, India. |
DIRECTORS
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Name : |
Mr. Kulbir Singh S/o Late Kartar Singh |
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Designation : |
Director |
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Address : |
60 New Raja Ki Mandi, Agra, P.S. Loha Mandi |
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Date of Birth/Age : |
10.04.1947 |
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Date of Appointment : |
23.12.2004 |
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Name : |
Mrs. Dalbir Kaur |
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Designation : |
Director |
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Address : |
60 New Raja Ki Mandi, Agra, P.S. Loha Mandi. |
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Date of Birth/Age : |
07.04.1950 |
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Date of Appointment : |
23.12.2004 |
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Name : |
Mr. Dipak Budhiraja |
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Designation : |
Additional Director |
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Address : |
24, Lajpat Kunj, Agra. |
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Date of Birth/Age : |
04.10.1970 |
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Date of Appointment : |
01.01.2005 |
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Name : |
Mrs. Stella Budhiraja |
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Designation : |
Additional Director |
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Address : |
24, Lajpat Kunj, Agra. |
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Date of Birth/Age : |
23.08.1974 |
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Date of Appointment : |
01.01.2005 |
KEY EXECUTIVES
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Name : |
Mr. Vishnu Gupta |
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Designation : |
General Manager |
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Name : |
M/s Gupta D and Associates |
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Designation : |
Company Secretary |
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Address : |
F-47, Tatya Tope Nagar, Kanpur, Uttar Pradesh, India. |
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E-Mail : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 01.11.2007
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Names of Shareholders |
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No. of Shares |
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Mr. Kulbir Singh |
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120000 |
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Mrs. Dalbir Kaur |
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120000 |
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Mr. Dipak Budhiraja |
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120000 |
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Mrs. Stella Budhiraja |
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120000 |
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Equity Share
Break-up (As on 29.09.2007) |
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Percentage
of Holding |
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Directors or Relatives Of Directors |
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100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and exporter of shoes uppers and shoe accessories like PVC and soles, leather safety footwear |
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Exports : |
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Countries : |
Europe, Canada, South Africa and U. K. |
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Imports : |
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Countries : |
Germany, Brazil, France and Italy |
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Terms : |
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Selling : |
L/C and Advance Payments |
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Purchasing : |
L/C and Credit (60 days) |
PRODUCTION STATUS (As on 31.03.2006)
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Particulars |
Unit |
Actual Production |
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Shoes |
Pairs Per month |
30000 |
GENERAL
INFORMATION
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Customers : |
Wholesalers |
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No. of Employees : |
About 2000 |
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Bankers : |
International Banking Branch, F-36, Sanjay Place, Agra – 282 002, Uttar Pradesh, India.
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Facilities : |
Loan :- Rs. 72.500 millions on 14/10/2005 |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
A J Associates Chartered Accountants |
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Address : |
3/20, M G Road, Opposite Subhash Park, Agra – 282 010,
Uttar Pradesh, India |
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Associates/Subsidiaries : |
·
Roger Exports Export 100000 pairs per month Started : 1979 Emp- 600 Nos. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs.10/- Each |
Rs.20.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1500000 |
Equity Shares |
Rs.10/- Each |
Rs.15.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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15.000 |
15.000 |
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2] Share Application Money |
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4.800 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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(4.686) |
(6.377) |
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NETWORTH |
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15.114 |
8.623 |
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LOAN FUNDS |
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1] Secured Loans |
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59.449 |
45.467 |
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2] Unsecured Loans |
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7.533 |
4.099 |
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TOTAL BORROWING |
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66.982 |
49.566 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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82.096 |
58.189 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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30.395 |
35.527 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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43.926 |
16.727 |
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Sundry Debtors |
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31.554 |
14.063 |
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Cash & Bank Balances |
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13.827 |
3.376 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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3.599 |
1.533 |
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Total
Current Assets |
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92.906 |
35.699 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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42.984 |
15.154 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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42.984 |
15.154 |
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Net Current Assets |
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49.922 |
20.545 |
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MISCELLANEOUS EXPENSES |
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1.779 |
2.117 |
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TOTAL |
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82.096 |
58.189 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
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112.733 |
19.559 |
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Other Income |
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3.433 |
0.953 |
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Total Income |
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116.166 |
20.512 |
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Profit/(Loss) Before Tax |
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1.691 |
(6.377) |
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Provision for Taxation |
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-- |
-- |
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Profit/(Loss) After Tax |
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1.691 |
(6.377) |
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Expenditures : |
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Financial Charges |
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NA |
3.170 |
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Depreciation & Amortization |
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NA |
3.444 |
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Other Expenditure |
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114.475 |
20.275 |
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Total Expenditure |
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114.475 |
26.889 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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1.46 |
(31.09) |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.50 |
(32.60) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.37 |
(8.95) |
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Return on Investment (ROI) (PBT/Networth) |
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0.11 |
(0.74) |
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Debt Equity Ratio (Total Liability/Networth) |
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7.28 |
7.51 |
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Current Ratio (Current Asset/Current Liability) |
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2.16 |
2.36 |
LOCAL AGENCY
FURTHER INFORMATION
Other Information:
Subject (An ISO 9001:200 Certified Company) a leading safety footwear company
engaged in manufacturing and 100% export of Industrial safety footwear. The
Company regulates all the specifications/categories of safety footwear as per
EN ISO 20345:2004 norms require.
FORM 8
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Name of the company |
EURO SAFETY FOOTWEAR (INDIA) PRIVATE LIMITED |
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Presented By |
Punjab National Bank International Banking Branch, Sanjay Place, Agra |
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1) Date and description of instrument creating the change |
Hypothecation of
movable assets forming part of fixed/block assets dated 14.07.2005 and
registered on 11.08.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.71.500
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 |
i) Hypothecation
of all the assets and movable property of any kind belonging to the Borrower
which now or hereafter from time to time during the continuance of this
agreement shall be brought in stored or to be in or about the Borrowers
premises or godowns or be in course of transit from one godown to another of
wherever else the same may be. ii) First charge
on entire block assets of the company by way of the company situated at 12th
KM Agra Mathura Road (1st and 2nd Floor – Khasra
No.157, 158 of Mauja Artoni) Agra. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
i) The abovesaid
are hypothecated to secure the following credit facilities granted by Bank to
the company:- Nature of
Facilities
Amount Rs. In Million a) Fund Based
Working Capital Limits 1.Packing
Credit 10.000 2.FDBP Limit 15.000 3.FOUBP Limit
(within FOBP)
(5.000) 4.FOBNLC/FOUBNLC 15.000 b) Non Fund Based
Working Capital Limits 1.FLC/ILC 10.000 2.ILG
8.000 c) One time basis
FLC
30.000 [FLC at 25%
margin on one time basis for import of machinery which will be paid out of
Term Loan] ii) Commission,
interest and other charges shall be charged as per Bank’s rates applicable
from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank International Banking Branch, Sanjay Place, Agra |
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6) Date and brief description of instrument modifying the charge |
i) Agreement of
Hypothecation of movable assets forming part of fixed/block assets dated
15.09.2005 ii) Agreement of
General Counter Indemnity dated 15.09.2005 |
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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. |
i) On renewal ILG
limit has been enhanced from Rs.8.000 millions to Rs.17.600 millions. However
all other credit facilities remained same. Therefore total amount of charge
secured against hypothecation of all assets and movable property and block
assets etc. as per details mentioned in column 3 above has now been enhanced
from Rs.71.500 millions to Rs.81.100 millions to secure the following credit
facilities granted by bank to the company Nature of
Facilities
Amount Rs. In Million a) Fund Based
Working Capital Limits 1.Packing
Credit 10.000 2.FDBP Limit
15.000 3.FOUBP Limit
(within FOBP)
(5.000) 4.FOBNLC/FOUBNLC 15.000 b) Non Fund Based
Working Capital Limits 1.FLC/ILC 10.000 2.ILG
17.600 c) One time basis
FLC
30.000 [FLC at 25%
margin on one time basis for import of machinery which will be paid out of
Term Loan] ii) The
securities for the enhanced charge of Rs.81.100 millions shall now also
include hypothecation of plant and machinery, vehicles, moulds, stocks,
spares, tools and all such items acceptable to Bank. Other terms and
conditions remained the same. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U19201UP2004PTC029359 |
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Name of the
company |
EURO SAFETY FOOTWEAR (INDIA) PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
60, New Raja Ki Mandi Agra, Agra – 282 001, Uttar Pradesh, India. |
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Type of charge |
Immovable
Property |
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Particular of
charge holder |
Punjab National Bank IBB Branch, Sanjay Place, Agra – 282 002, Uttar Pradesh, India. E-Mail: arsprofessional@yahoo.co.in |
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Nature of
description of the instrument creating or modifying the charge |
Equitable
Mortgage Letter |
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Date of
instrument Creating the charge |
05.04.2008 |
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Amount secured by
the charge |
Rs.235.151
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 Equitable Mortgage Letter Terms of
Repayment: As per Equitable Mortgage Letter Margin: As per
Equitable Mortgage Letter Extent and
Operation of the charge: The charge is extendable up to an amount of
Rs.235.151 Millions including the following Fund Based:
Non Fund Based:
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Short particulars
of the property charged |
Original Lease Deed of Plot No. B - 49/4, B - 49/5,B – 54/2 and B -
54/3 situated at Epip, Lakhanpur, Agra registered on 15.10.2007 |
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.43.58 |
|
UK Pound |
1 |
Rs.81.43 |
|
Euro |
1 |
Rs.64.52 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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 |
|