MIRA
INFORM REPORT
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Report Date : |
19.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RIFAH SHOES PRIVATE LIMITED |
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Registered Office : |
Flat No. ‘A’ B SR Elysium No. 221 (865), Poonamallee High Road, Kilpauk,
Chennai – 600 010, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.10.1996 |
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Com. Reg. No.: |
18-36738 |
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CIN No.: [Company
Identification No.] |
U18209TN1996PTC036738 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHER05830G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, Supplier and Exporter of
Leather Sandals, Leather chappals, Sheep Leather, cow Leather, Buffalo
Leather, Goat Leather |
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 130000 |
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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 an established company having moderate track. Profit margin
is low. Trade relations are fair. Payments are slow but correct. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Flat No. ‘A’ B SR Elysium No. 221 (865), Poonamallee High Road, Kilpauk,
Chennai – 600 010, Tamilnadu, India |
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Tel. No.: |
91-44-26651310 / 26423051 |
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Fax No.: |
91-44-26613484 |
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E-Mail : |
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Factory : |
22/865, P H Road, Kilpauk, Chennai – 600 010, Tamilnadu, India |
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Tel. No.: |
91-44-26651310 |
DIRECTORS
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Name : |
Mr. C Suhail Ahmed |
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Designation : |
Managing Director |
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Address : |
140/A, Poonamallee High Road, Kilpauk, Chennai – 600 010, Tamilnadu,
India |
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Date of Birth/Age : |
17.07.1959 |
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Date of Appointment : |
10.10.1996 |
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Name : |
Mr. S Syed Latheef |
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Designation : |
Director |
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Address : |
19/2/16 Dimmasamy Tharga Street, Agaram, Chennai – 600 082, Tamilnadu,
India |
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Date of Birth/Age : |
21.02.1975 |
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Date of Appointment : |
14.05.2004 |
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Name : |
Mr. M Junaid Ahmed |
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Designation : |
Director |
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Address : |
221/865, Poonamallee High Road, Kilpauk, Chennai – 600 010, Tamilnadu,
India |
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Date of Birth/Age : |
06.06.1974 |
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Date of Appointment : |
14.05.2004 |
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Name : |
Mr. M Ahmed Basha |
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Designation : |
Director |
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Address : |
221/865, Poonamallee High Road, Kilpauk, Chennai – 600 010, Tamilnadu,
India |
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Date of Birth/Age : |
11.05.1970 |
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Date of Appointment : |
14.07.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 29.09.2007)
|
Names of Shareholders |
No. of Shares |
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C Suhail Ahmed |
1160000 |
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S Syed Latheef |
20000 |
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M Junaid Ahmed |
20000 |
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Anwar Basha |
300000 |
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Total |
1500000 |
Equity share
breakup (percentage of total equity)
(As on 30.09.2007)
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Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Supplier and Exporter of Leather Sandals, Leather
chappals, Sheep Leather, cow Leather, Buffalo Leather, Goat Leather |
GENERAL
INFORMATION
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No. of Employees : |
About 300 |
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Bankers : |
State Bank of India Leather and International Branch, 177/1, Poonamalee High Road, Kilpauk,
Chennai – 600 010, Tamilnadu, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
N S R Balu and Company Chartered Accountant |
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Address : |
22 Old No. 20, Govindu Street, T Nagar, Chennai – 600 017, Tamilnadu,
India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1750000 |
Equity Shares |
Rs.10/- each |
Rs.17.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/- each |
Rs.15.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.000 |
11.504 |
8.504 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
11.182 |
10.008 |
9.290 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
26.182 |
21.512 |
17.794 |
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LOAN FUNDS |
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1] Secured Loans |
80.191 |
52.910 |
61.975 |
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2] Unsecured Loans |
4.406 |
0.718 |
0.000 |
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TOTAL BORROWING |
84.597 |
53.628 |
61.975 |
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DEFERRED TAX LIABILITIES |
1.248 |
0.793 |
0.453 |
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TOTAL |
112.027 |
75.933 |
80.222 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
33.782 |
30.042 |
22.887 |
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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 |
55.815
|
20.999 |
23.405 |
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Sundry Debtors |
63.981
|
51.637 |
59.229 |
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Cash & Bank Balances |
2.283
|
2.166 |
3.159 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
3.123
|
0.869 |
0.778 |
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Total
Current Assets |
125.202
|
75.671 |
86.571 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
46.900
|
29.718 |
29.236 |
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Provisions |
0.057
|
0.062 |
0.000 |
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Total
Current Liabilities |
46.957
|
29.780 |
29.236 |
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Net Current Assets |
78.245
|
45.891 |
57.335 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
112.027 |
75.933 |
80.222 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
202.406 |
179.241 |
182.037 |
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Other Income |
17.530 |
14.054 |
15.346 |
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Total Income |
219.936 |
193.295 |
197.383 |
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Profit/(Loss) Before Tax |
2.008 |
1.331 |
1.412 |
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Provision for Taxation |
0.834 |
0.613 |
0.335 |
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Profit/(Loss) After Tax |
1.174 |
0.718 |
1.077 |
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Expenditures : |
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Expenses |
66.729 |
51.656 |
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Material |
143.376 |
130.878 |
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Interest |
3.472 |
5.694 |
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Depreciation & Amortization |
4.351 |
3.736 |
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Total Expenditure |
217.928 |
191.964 |
195.971 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
0.53
|
0.37 |
0.55 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.99
|
0.74 |
0.78 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.26
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1.26 |
1.29 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08
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0.06 |
0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
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5.02
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3.88 |
5.13 |
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Current Ratio (Current Asset/Current Liability) |
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2.67
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2.54 |
2.97 |
LOCAL AGENCY FURTHER
INFORMATION
Form No. 8
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Name of the company |
RIFAH SHOES PRIVATE LIMITED |
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Presented By |
State Bank of India Leather and International Branch, Chennai – 600 010 |
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1) Date and description of instrument creating the change |
·
General Agreement
for Grant of Small Industrial Advances and Hypothecation of movables, book
debts and other assets dated 05.06.1992 ·
Supplemental
General Agreement for Grant of Small Industrial Advances and Hypothecation of
Goods, Book Debts and other Assets dated 19.01.1996 ·
General
Agreement of the Grant of Small Industrial Advances and Hypothecation of
Movables, book debts and other assets dated 14.03.1996 ·
General
Agreement of the Grant of Small Industrial Advances and Hypothecation of
Goods, book debts and other assets dated 08.08.1997 All the agreement
cited above had been executed by M/s Zia Foot Wear Company (which was later
charged to M/s Rifah Leather Uppers, a Partnership Firm) which has been taken
over by M/s Rifah Leather Uppers Private Limited w.e.f. 01.10.1997 (Vide
Board Resolution Passed by the Company on 01.10.1997). The properties of the
firm as stated in column No. 3 below are subject to charge as per Section 127
of the Companies Act, 1956. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.11.000
millions Comprising Off : Nature of
Facility (Rs. in Millions) Export Packing
Credit : 2.000 Foreign Doc. Bill
Limit : 9.000 Total : 11.000 |
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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 |
All Present and
Future goods, viz. raw materials, semi finished goods and finished goods,
book debts, movables and other assets of the Company, outstanding monies,
receivables, claims, bills, invoices, documents, contracts, engagements,
securities, investments and rights belonging to or in the possession, or
under the control of the Company whether lying stored and kept and whether in
the possession of the Company or of the Bank or of any third party whether in
India or elsewhere throughout the world (Including all such goods, movables
and other assets as may be in course of shipment, transit or delivery) shall
stand hypothecated to the Bank as Primary Security by way of First Charge All the
Machineries of the Company shall stand hypothecated to the Bank as Collateral
Security. The above
mentioned properties have been acquired by M/s Rifah Leather Uppers Private
Limited from M/s Zia Foot Wear Company (later changed to Rifah Leather Uppers
Private Limited. The date of
acquisition of all the aforesaid properties is 01.10.1997 vide company’s
Board Resolution dated 01.10.1997.
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest Export Packing
Credit : 1.5% above SBAR with a minimum of 16.75% p.a. subject to RBI
guidelines. Current effective rate being 13% Foreign Doc. Bill
Limit : 1.50% above SBAR with a minimum of 16.75% p.a. subject to RBI
Guidelines. Current effective
rate being 13% upto 90 days; 15% for 91-180 days and 18.75% beyond 180 days. For Overdue bills
: 18.75% p.a. Penal Interest :
2% over SBAR with a minimum of 18.75% p.a. when the Company fails to adhere
to the terms of sanction. Margin (EPC) :
25% The other terms
and conditions as per agreement. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India Leather and International Branch, Kilpauk, Chennai – 600 010,
Tamilnadu, India |
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6) Date and brief description of instrument modifying the charge |
All dated
07.01.2005 ·
Letter
confirming the extension of equitable mortgage. · General Agreement for the grant of Small industrial advances and hypothecation of movables, book debts and other assets (Working Capital Finance) · Agreement for the grant of Small industrial advances (Working Capital Finance) · Re: Hypothecation of movables, book debts and other assets · Agreement for the grant of Small industrial advances (Working Capital Finance) Advances against receivables and bills in course of collection · General Agreement for the grant of Medium term advances to small scale industries and hypothecation of movables, book debts and other assets · Ancillary Agreement for medium term loan against pledge movable machineries, · Guarantee Agreement for small industrial advances (Working Capital Finance) · Guarantee Agreement for small industrial advances (Term Loans) · General Indemnity for negotiation or purchase of bills expressed in foreign currencies or Indian Rupees. · Shipping Lien. |
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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 existing
credit facilities of Rs.55.000 millions are modified by way of renewal and
availment of additional facilities of Term Loan and SLC as follows :-
The modified limits
are collaterally secured by way of extension of the Company’s immovable
properties situated at Flat No. A, three bed room flat having built area of
1892 Sq. ft. in the ground floor side, together with 815 of undivided share
in the total extent of land bearing Door No. 865 (Old No 470) Poonamalle High
Road, Kilpauk, Chennai 10. Further the terms
and conditions and other security descriptions already charged to the earlier
creation / modification particulars remains unchanged and shall also extend
to this modified limits. The other terms
and conditions remain as per the documents. |
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Corporate
identity number of the company |
U18209TN1996PTC036738 |
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Name of the
company |
RIFAH SHOES PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
Flat No. ‘A’ B SR Elysium No. 221 (865), Poonamallee High Road,
Kilpauk, Chennai – 600 010, Tamilnadu, India |
|
This form is for |
Modification of
charge |
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Type of charge |
·
Immovable
property ·
Book debts ·
Movable
property (not being pledge) ·
Others o
Personal
Guarantee of all Directors |
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Particular of
charge holder |
State Bank of India Leather and International Branch, 177/1, Poonamalee High Road, Kilpauk,
Chennai – 600 010, Tamilnadu, India |
|
Nature of
instrument creating charge |
Letter of
confirmation for extension of mortgage by deposit of title deeds SME-8 (2
Nos.) Letter of
Arrangement dated 21.03.2007 On SME-1 Agreement of loan
cum hypothecation dated 23.03.2007 for Rs.82.500 millions on SME-2 Unstamped Letter
furnishing particulars of machineries dated 23.03.2007 on SME-2A |
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Date of
instrument Creating the charge |
23.03.2007 |
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Amount secured by
the charge |
Rs.82.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Existing terms
and conditions of the Bank for the rate of interest as applicable to working
capital and term loan advances Terms of
repayment Modification is
for availment of enhanced export packing credit limit and FDB NLC and hence
repayment does not arise. For the Term Loan forming part of the total credit
limits, the repayment remain as per the earlier Bank’s sanction starts from
April 2007 for 23 instalments of Rs.0.100 million and the final instalment of
Rs.0.200 million The entire credit
facilities are repayable on demand. Margin Existing terms
and conditions for margin remains same and is applicable to this charge viz.
Raw Material Domestic 25% Imported 25% SIP 25% FG 25% T.L. 32.43% Extent and
operation of the charge Modified limit of
Rs.82.500 millions is secured primarily by way of entire current assets of
the company and movable fixed assets including its plant and machinery both
present and future. Others Personal
Guarantee of all directors in total Rs.11.000 millions |
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Particulars of
the property charged |
Equitable
mortgage over flat belonging to M/s Rifah Private Limited situated @ 221/865 P
H Road, Kilpauk, Chennai – 600 010, measuring 1893 sq. ft. Equitable
mortgage over factory land and building @ Kilmurungai village, Ambur
Sub-division, Vaniyambadi Tk, Vellore Dist, New S.No 109/7A – 0.32 acre
(13952 sq ft) belonging to the unit. |
Business
The Company was incorporated with the main Object of manufacturing and
trading in leather products especially shoed uppers and full shoes. During the
year, the major source of revenue is from sale of leather full shoes.
Fixed Assets
·
Land
·
Buildings
·
Air Compressor
·
Air Conditioner
·
Bajaj Caliber
·
Bajaj M and O
·
Bajaj Pulsar
·
Hero Honda Splender
·
Cellular
·
Color Television
·
Computers
·
Electric Forms
·
Fax Machines
·
Furniture and Fixtures
·
Generators
·
Inter Communicator
·
Machineries
·
New Mini Bus
·
Tempo Traveller
·
Toyota Qualis
·
Tata Bus
·
Ashok Leyland Bus
·
Maruthi Swift
·
Typewriter
·
TVS Super Excell
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.47.28 |
|
UK Pound |
1 |
Rs.73.43 |
|
Euro |
1 |
Rs.68.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
40 |
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 |
|