MIRA
INFORM REPORT
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Report Date : 24.12.2008 |
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IDENTIFICATION
DETAILS
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Name : |
SUPERHOUSE LIMITED |
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Formerly Known As : |
SUPERHOUSE LEATHERS LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
14.01.1980 |
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Com. Reg. No.: |
004910 |
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CIN No.: [Company
Identification No.] |
L24231UP1980PLC004910 |
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TAN No.: [Tax
Deduction and Collection Account No.] |
KNPS01554A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacture and Exports of Shoe Uppers, Chrome Leather, Sole Leather, Shoes, Sole/Cut Soles, Leather Garment, Textile Garments and Leather Goods. |
RATING and
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5000000 |
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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 and reputed company having fine
track. The company is progressing
well. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Payments are usually correct and as per
commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long -run |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-512-2351120 / 2351867 / 2450391 / 2450373 / 2450396 / 2450398 / 2463373 / 2461391 |
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Fax No.: |
91-512-2450814 / 2820325 / 2451124 / 2460814 |
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E-Mail : |
superhou@lw1.vsnl.net.in super@sancharnet.in |
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Website : |
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Corporate Office : |
D-15/B, UPSIDC, Industrial Area, Phase-II Unnao – 209801. |
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Tel. No.: |
91-515-2029452 / 2829923 / 2829657 / 2829037 |
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Fax No.: |
91-515-2929325 / 2829190 |
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Plants: |
Leather Processing A-1 Site-ll, Industrial Area, Unnao - 209 801 B-15, U.PS.I.D.C. Industrial Area, Site-ll, Unnao-209 801 Fashion Footwear Plot No. A-3, A-5, .RS.I.D.C.Industrial Area, Site-B, Sikandra, Agra-282 007 D-15, U.PS.I.D.C. Industrial Area, Site-ll, Unnao-209 801 Safety Footwear B-6, Site I, Industrial Area, Unnao-209 801 Shoe Upper Textile Garment A-14, Sector 65, Phase III, Noida Leather Garment C-10, Sector 58, Phase III, Noida |
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Division Offices: |
Upper Division 102/88 - A (10) Wazidpur, Tel: 91-515 - 2460496,2463373,2461391 Fax: 91-515 - 2460814,2462124
Chrome Tannery Division A-1 C-1 Industrial Area, Site-II, Unnao – 209801 Tel: 91-515 - 2829750, 2829850 Fax: 91-515 - 2829325, 2829190
Goat Tannery B-15,16 and 17, Industrial Area, Site, Unnao – 209801 Tel: 91-515 - 2829845, 2829812, 2829248 Fax: 91-515 - 2829658, 2829190
Harness and Sole Tannery B-16 and 17, Site II Industrial Area, Unnao - 209801 Tel.: 91-515 - 282845, 2829812, 2829248, 2829658 Fax.: 91-515 - 2829190
Shoe Division D-15/B, UPSIDC, Industria Area, Phase-II, Unnao – 209801 Tel: 91-515 - 2829452, 2829923, 2829657, 2829037 Fax: 91-515 - 2829325, 2829190
Safety Footwear Division B-6, Site-I UPSIDC, Industrial Area Unnao – 209801 Tel: 91-515 - 2829656, 2829384, 2829675, 2829803 Fax: 91-515 - 2829325, 2829190
Fashion Shoe Division I Plot No. A-3, A-4, B-4, B-5, B-6 Shastri Puram, Tel: 91-562 - 26423352, 2640183, 2642336 Fax: 91-562 – 2640184
Fashion Shoe Division II A-5, UPSIDC, Industrial Rea, Site-B, Sikandra, Tel: 91-562 – 2642336
Leather Garments Division B-37, Sector - 59 Phase-II, Noida Tel: 91-120 - 2584819, 2585819 Fax: 91-120 – 2584976
Textile Garments Division C-10, Sector-58 Phase-II Noida Tel: 91-120 - 2580095,2490630 Fax: 91-120 – 2580095
Marketing Office, Marketing Office, Noida C-10, Sector-58, Phase-II, Noida Tel: 91-120 - 2580095,2490630 Fax: 91-120 – 2580095
Marketing Office, Chennai 42/1/II, Ekkathuthqngal Channai – 600097 Telfax: 91-44 – 22253731
Super Footwear Limited Shed No.1, Leather Complex, Site-II, Industrial Area, Unnao – 209801 Fax: 91-515 - 2829325,2829190
Superhouse Shoes Limited E-54, UPSIDC, Industrial Area, Phase-II, Unnao Tel: 91-515 – 2829289
Amin International Limited E-55, UPSIDC, Industrial Area Phase-II Unnao Tel: 91-515 - 2829704 |
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Overseas
Offices: |
Amin International Limited E-55, UPSIDC, Industrial Area Phase-II Unnao Tel: 0515 – 2829704 66, Commercial square, Freemen’s Common, Leicester LEC 7 SR, U.K Tel. No.:- 44-116-2756555 Fax :- 44-116-2756655 Email :- ukoffice@superhousegroup.com
US Office Colonial Crest Apartment, 1090-F, Telefax: 1-610 9663351 E-mail: usoffice@superhousegroup.com 4/14, Avenue Road, Frewville SA5063, Tel No. : 61-8-8338 2454, Fax : 61-8-8338 2283 E-mail: superhouse@optusnet.com.au UAE Office Warehouse No. B-4, Tel No : 971-6-7442993, Fax : 971-6-7443739 E-mail: uaeoffice@superhousegroup.com |
DIRECTORS
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Name : |
Mr. Mukhtarul Amin |
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Designation : |
Chairman cum
Managing Director |
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Date of Birth/Age : |
48 years |
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Qualification : |
B.Sc. |
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Experience : |
29 years |
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Date of Appointment : |
01.11.1990 |
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Previous Employment: |
Super Tannery India
Limited, Managing Director |
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Name : |
Mrs. Shahina Mukhtar |
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Designation : |
Wholetime Director |
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Name : |
Mr. Vinay Sanan |
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Designation : |
Executive Director |
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Name : |
Mr. Anil Kumar Agarwal |
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Designation : |
Director Finance |
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Name : |
Mr. Mohd. Shadab |
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Designation : |
Wholetime Director |
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Name : |
Mr. Zafarul Amin |
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Designation : |
Wholetime Director |
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Name : |
Mr. Salman Khurshid |
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Designation : |
Director |
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Name : |
Mr. Anil Soni |
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Designation : |
Director |
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Name : |
Dr. K. K. Agarwal |
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Designation : |
Director |
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Name : |
Mr. M. D. Dalai |
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Designation : |
Director |
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Name : |
Mr. S. M. Rais |
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Designation : |
Director |
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Name : |
Mr. Sartaj Ahmad |
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Designation : |
Director |
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Name : |
Mr. Rizwan Ahmad Khan |
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Designation : |
Wholetime Director |
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Name : |
Mrs. Nausheen Shadab |
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Designation : |
Director |
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Name : |
Mrs. Shada Fatima |
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Designation : |
Director |
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Name : |
Mr. Kamal Agarwal |
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Designation : |
Director |
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Name : |
Mr. N.C.Jain |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R. K. Agrawal |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A. Promoter's Holding (1+2) |
4303261 |
44.84 |
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1 |
Promoters |
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Indian promoters |
4303261 |
44.84 |
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Foreign Promoters |
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2 |
Persons acting in Concert |
- |
- |
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Sub-Total |
4303261 |
44.84 |
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B. Non-Promoters Holding (3+4) |
5293322 |
55.16 |
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3 |
Institutional Investors |
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a. |
Mutual Funds and UTI |
3638 |
0.04 |
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b. |
Banks, Financial Institutions, Insurance Companies (Central / State Government
Institutions / Non-Government Institutions) |
4975 |
0.05 |
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c. |
Flls |
- |
- |
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Sub-Total |
8613 |
0.09 |
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4. |
Others |
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a. |
Private Corporate Bodies |
471761 |
4.92 |
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b. |
Indian Public |
4795952 |
49.97 |
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c. |
NRIs / OCBs |
16996 |
0.18 |
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Sub-Total |
5293322 |
55.16 |
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GRAND TOTAL |
9596583 |
100.00 |
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BUSINESS DETAILS
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Line of Business : |
Manufacture and Exports of Shoe Uppers, Chrome Leather, Sole Leather, Shoes, Sole / Cut Soles, Leather Garment, Textile Garments and Leather Goods. |
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Products : |
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Exports : |
v
HongKong |
PRODUCTION STATUS as on 31.03.2008
|
Class of Goods |
Unit |
Capacity (per Annum) |
Actual
Production |
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Licensed |
Installed |
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Shoe Upper |
Pairs |
1000000 (1000000) |
912000 (912000) |
415230 (386978) |
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Leather Hides |
Hides |
820000 (800000) |
660000 (450000) |
455698 (450457) |
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Leather skin |
Pcs |
1500000 (1500000) |
1500000 (1500000) |
1397160 (1207323) |
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Shoes |
Pairs |
4060000 (2689200) |
2635301 (1615301) |
2487528 (2380348) |
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Leather Products |
Pcs |
563000 (563000) |
N. A. |
70614 (57481) |
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Textile Garment |
Pcs |
1100000 (850000) |
810000 (210000) |
588083 (444848) |
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Animal Feed |
MT. |
900 (NA) |
270 (NA) |
89 (Nil) |
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Sole |
Pairs |
N.A. |
480000 (480000) |
Nil (155055) |
GENERAL
INFORMATION
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Suppliers : |
v Avadh Engines and Machines Private Limited v Kurt’O John Shoe Components Private Limited v M I Rubber Industries v R.K. Traders v Sanghavi Shoe Accessories Private Limited v AKI Leather Industries Private Limited v Associated Chemicals Private Limited v Associated Chemicals Private Limited v Anu Chemicals v K.N. Chemicals v Keuper Laminators v Pee
v Roshan Lai |
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Customers : |
v
Shoe House v
Prime International |
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No. of Employees : |
1204 |
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Bankers : |
v
Punjab National Bank, Tel. No. 91-512-2317986 / 2362117 / 2311577 Fax No. 91-512-2311232
v
State Bank of 15/54-B, Civil Court Road, Civil Lines, Tel. No. 91-512-2354990 / 2368174 Fax No. 91-512-2313474 |
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Facilities : |
Of the above Term loans Rs. 125.821 millions (Previous year Rs.67.210 millions) are repayable within one year.
Working Capital Loans from banks include USD 8,05,299.23 (Previous Year USD 3,19,339.74 and EURO1,75,946.85)
Foreign Currency Demand Loan and Packing Credit Foreign Currency.
Term Loan from banks include USD 42, 64,493.68 (Previous year USD Nil) Foreign Currency Term Loan.
* Secured by hypothecation of specific current assets and movable assets of the company both present and future and personal guarantee of two directors.
** Secured by equitable mortgage of specific fixed assets and hypothecation of Plant and Machineries and personal guarantee of. two directors and includes Rs. 9.756 millions ( Previous year Rs. 9.798 millions ) secured by hypothecation of vehicle financed.
*** Secured by equitable mortgage of specific fixed
assets.
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Kapoor Tandon and Company Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
Subsidiaries v Amin International Limited v
Superhouse ( v
Superhouse ( v
Superhouse
Australia Pty. Limited, v SuperhouseMiddle East FZC, Azman
ASSOCIATES
v
Super Tannery ( v Superhouse Overseas Limited v Superhouse Shoes Limited v Chowdhary Overseas Limited v Unnao Tanneries Pollution Control Company v Super Footwear Limited v Tritan Leather Works Private Limited v Prime International v Shoe House v Nigar Talkies Limited v Aleena International |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 150.000
millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13544301 |
Equity Shares |
Rs. 10.00 each |
Rs. 135.443 millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9596583 |
Equity Shares |
Rs. 10.00 each |
Rs. 95.966 millions |
|
3947718 |
Add: forfeited Equity Shares |
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Rs. 3.948 millions |
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Total |
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Rs. 99.914 millions |
Note:
Of the above 4214542 Equity shares were allotted as fully paid Share pursuant to the Scheme of Amalgamation without payments being received in cash.
496,583 shares allotted as fully paid shares
on conversion of preferential warrants.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
99.914 |
94.948 |
92.191 |
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2] Preferential Warrant Money |
0.000 |
26.908 |
0.000 |
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3] Reserves and Surplus |
854.149 |
818.622 |
767.491 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
954.063 |
940.478 |
859.682 |
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LOAN FUNDS |
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1] Secured Loans |
929.325 |
760.368 |
539.380 |
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2] Unsecured Loans |
5.020 |
0.000 |
0.000 |
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TOTAL BORROWING |
934.345 |
760.368 |
539.380 |
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DEFERRED TAX LIABILITIES |
82.020 |
74.523 |
70.623 |
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TOTAL |
1970.428 |
1775.369 |
1469.685 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
926.864 |
752.534 |
628.992 |
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Capital work-in-progress |
53.764 |
22.165 |
32.422 |
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Advances for Capital Expenditure |
11.521 |
29.650 |
12.540 |
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INVESTMENT |
47.330 |
45.559 |
52.657 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS and ADVANCES |
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|
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|
|
|
Inventories |
776.810
|
773.719
|
584.959 |
|
|
Sundry Debtors |
573.948
|
590.369
|
468.047 |
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Cash and Bank Balances |
79.442
|
126.020
|
50.100 |
|
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Other Current Assets |
103.724
|
72.542
|
50.661 |
|
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Loans and Advances |
71.691
|
77.690
|
55.050 |
|
Total
Current Assets |
1605.615
|
1640.340 |
1208.817 |
|
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Less : CURRENT LIABILITIES
and PROVISIONS |
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Current Liabilities |
654.709
|
706.885
|
449.381 |
|
|
Provisions |
19.957
|
7.994
|
16.362 |
|
Total
Current Liabilities |
674.666
|
714.879 |
465.743 |
|
|
Net Current Assets |
930.949
|
925.461 |
743.074 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
1970.428 |
1775.369 |
1469.685 |
|
PROFIT and LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
3158.658 |
3246.033 |
2309.910 |
|
|
Other Income |
23.172 |
24.222 |
10.228 |
|
|
Total Income |
3181.830 |
3270.255 |
2320.138 |
|
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|
|
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|
|
|
Profit/(Loss) Before Tax |
66.880 |
110.607 |
78.599 |
|
|
Provision for Taxation |
27.347 |
39.942 |
31.168 |
|
|
Profit/(Loss) After Tax |
39.533 |
70.665 |
47.431 |
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|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
2569.377 |
2457.211 |
1784.2354 |
|
|
Other Earnings |
0.887 |
1.166 |
0.223 |
|
Total Earnings |
2570.264 |
2458.377 |
1784.458 |
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
180.380 |
188.113 |
91.587 |
|
|
Stores and Spares |
179.794 |
187.725 |
149.875 |
|
|
Capital Goods |
93.072 |
24.103 |
20.430 |
|
|
Finished Goods |
2.035 |
0.142 |
0.456 |
|
Total Imports |
455.281 |
400.083 |
262.348 |
|
|
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Expenditures : |
|
|
|
|
|
|
Materials consumed |
2144.632 |
2354.096 |
1615.733 |
|
|
Change in stock of Finished Goods and
work-in-process |
(44.172) |
(74.926) |
(58.090) |
|
|
Manufacturing,
Administrative, selling and Distribution Expenses |
945.757 |
821.259 |
635.413 |
|
|
Depreciation |
69.488 |
59.219 |
48.483 |
|
Total Expenditure |
3114.950 |
3159.648 |
2241.539 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
(1st Quarter) |
(2nd Quarter) |
|
Sales Turnover |
|
797.000 |
994.000 |
|
Other Income |
|
05.800 |
04.800 |
|
Total Income |
|
802.800 |
998.800 |
|
Total Expenditure |
|
725.100 |
909.500 |
|
Operating Profit |
|
77.700 |
89.300 |
|
Interest |
|
19.500 |
23.500 |
|
Gross Profit |
|
58.200 |
65.800 |
|
Depreciation |
|
18.200 |
21.100 |
|
Tax |
|
13.300 |
15.300 |
|
Reported PAT |
|
25.800 |
28.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.98 |
0.80 |
0.70
|
|
Long Term Debt-Equity Ratio |
0.35 |
0.23 |
0.21
|
|
Current Ratio |
1.20 |
1.23 |
1.31
|
|
TURNOVER RATIO |
|
|
|
|
Fixed Assets |
2.31 |
2.67 |
2.27
|
|
Inventory |
3.80 |
4.10 |
3.75
|
|
Debtors |
5.06 |
5.26 |
4.38
|
|
Interest cover Ratio |
1.74 |
2.61 |
2.52
|
|
Operating Profit Margin(%) |
7.72 |
8.57 |
8.85
|
|
Profit Before Interest and Tax Margin(%) |
5.36 |
6.44 |
6.45
|
|
Cash Profit Margin(%) |
3.57 |
4.67 |
4.75
|
|
Adjusted Net Profit Margin(%) |
1.21 |
2.54 |
2.35
|
|
Return on Capital Employed(%) |
9.22 |
12.30 |
10.26
|
|
Return on Net Worth(%) |
4.13 |
8.75 |
6.37
|
LOCAL AGENCY
FURTHER INFORMATION
Financial
Performance:
The company has achieved the sales and other Income of Rs. 3181.8 millions against
Rs. 2992.400 millions reported last year. The Profit after Tax was Rs.3953.300
millions during the year under review as compared to Rs. 7066.500 millions
reported during the previous year.
Gold Trophy
The company has once again bagged the most prestigious Gold Trophy for the best
performance in Overall Export in leather industry. The companies with total FOB
export turnover of leather and leather products of Rs. 1000.000 millions and
above are eligible for considering this award. In addition to Gold Trophy, the
company has also claimed Trophies for commendable export performance for
finished leather and non leather saddlary and harness.
Trading House
Certificate
The Company has received prestigious Trading House Certificate from Ministry of
Commerce and Industry, during the year.
Subsidiary
Companies
The company is having three wholly owned subsidiary companies namely M/s
Superhouse (UK) Limited, M/s Superhouse (USA) International Inc and Superhuose
Middle East FZC. A statement pursuant to section 212 of the Companies Act,1956
relating to company!s interest in subsidiaries companies is forming part of the
Annual Accounts.
Foreign Exchange
Earnings and Outgo
The Company continues to enjoy the status of a Government of India Recognized Export House.Continuous efforts are being made to identify the new markets. Exports during the year was Rs. 2569.377 millions in comparison to previous year of Rs. 2457.211 millions on FOB basis. During the year, total Foreign Exchange outgo was Rs 593.068 millions as compared to Rs. 520.919 millions during the preceding financial year.
Recognition:
Council for Leather Exports:
Mr. Mukhtarul Amin, Chairman and Managing Director of the company has
been unanimously elected as Chairman of Council for Leather Exports, a body
functioning under Ministry of Commerce and Industries, Government of India, for
the period 2007-2009.
Amalgamation with Super Footwear Limited
and Allen Shoes Limited:
M/s Super Footwear Limited and M/s Allen Shoes Limited have been amalgamated
with the company during the year. The combined financial and other resources of
all the three companies have resulted in better and more profitable utilization
of these sources and the company has been better placed for further profitable
growth.
MANAGEMENT DISCUSSION
AND ANALYSIS
Macroeconomic Overview.
Macroeconomic fundamentals continued to inspire confidence and the investment
climate was full of optimism during 2007-08. Buoyant growth of government revenues
made it possible to maintain fiscal consolidation. The pace of economic
improvement continued considerably during the last year.
However, there are genuine concerns on the inflation front which has crossed 11% point during current year. The opening of the economy and continuous reduction in tariff rates, besides promoting competitiveness and growth, have also provided an impetus to convergence of inflation rates.
The growing influence of global developments on the Indian economy was manifest
in the surge in capital inflows in 2007-08, a phenomenon observed earlier in
other emerging market economies. This is a natural concomitant of the robust
macroeconomic fundamentals like high growth, relative stability in prices,
healthy financial sector and high returns on investment.
Growth in world trade volume of goods and services decelerated from 9.2 percent
in 2006 to 6.6 per cent in 2007 and is projected to remain around the same
levels in 2008. The first eight months of the current fiscal, till November
2007, witnessed a moderate slowdown in the growth of the industrial sector. The
slowdown has mainly been on account of the manufacturing sector
After appreciating against major convertible currencies,
particularly the US dollar, during first three quarters the rupee started
depreciating during last quarter of 2007-08. This is good sign for exporters of
the country.
Industry Structure and
Developments
Leather products, which contribute significantly to employment generation and
export earnings, registered an impressive 12.2 per cent growth during
April-November 2007. The Western type leather footwear grew at 21.1 per cent,
while the Indian type leather footwear and finished leather had visibly lower
growth during April-November 2007, as per the IIP production data. The
(undeflated) value of production of leather garments grew close to 30 percent
during the period, while the production of shoe uppers grew at 12.4 per
cent.
Opportunities and Threats
The Inter-Ministerial Group constituted to evolve a comprehensive strategy for
the development of the leather sector assessed that
The Indian leather industry is also more comfortable in
competition with
At the same time, the Eleventh Five Year Plan document has identified
inadequate raw material base, low capacities and outmoded technologies of
tanneries, constraints faced by small units in complying with rigorous
environmental standards, shortage of skilled and semi-skilled workforce,
inability of the industry to meet international requirements of quantity and
variety and inadequate transport infrastructure as challenges to be overcome by
the industry.
The major threat to the Indian industry and to the Company is posed by the
aggressive increase of the production capacities by the Chinese and Vietnamese
manufacturers, who with their large infrastructure have a cost advantage. The
Company is handling this threat with value additions in design and
developments.
The stringent pollution regulations may also cause challenges to the
leather industry.
Segment-wise Performance :
The segment-wise performance of the company during the year is as under
:
Segments Turnover
a. Leather and Leather Products Rs. 2819.100 millions (previous year Rs.
2679.000 millions)
b. Textile Garments Rs. 328.400 millions (previous year Rs. 289.200
millions )
Outlook
During 2007-08 the leather industry has registered positive growth, inspite of
high appreciation in the value of rupee. As per the official publication of
DGCIandS, export of leather and leather products for the year 2007-08 stands at
US$ 3477.52 million as against the export during previous year of US$ 3059.43
million. With the appreciation in the value of foreign currencies, particularly
Euro and Dollar, it is expected that the industry will register impressive
growth during the year. The company has demand of its products from all over the
world.
Financial Performance
with Respect to Operational Performance:
The financial statements have been prepared in compliance with the requirements
of the companies Act, 1956 and Generally Accepted Accounting Principals in
Rs. 3181.830 millions against Rs. 2992.478 millions reported last year. The
profit after tax was Rs.39.533 millions during the year as compared to Rs.
70.665 millions reported during the previous year. The gross block of the
company as at 31.03.2008 was Rs. 1469.500 millions against Rs. 1222.400
millions as at 31.03.2007. The net current assets as at 31.03.2008 was Rs.
930.900 millions as against Rs. 925.500 millions as at 31.03.2007.
Business:
Subject has plans to ramp up its capacity, both by organic and inorganic
routes. For this, they are setting up two new shoe factories with a capacity of
5,000 pairs a day at
Handling Industry Issues:
The company is dealing with the issue of appreciation of rupee towards the end
of FY07 by reducing wastage and overhead expenses. The appreciation will affect
only the orders booked before rupee appreciation. Moreover, the government has
now increased the drawback/DEPB and lowered interest rates on exports, which
will make the scenario better for the industry and the company.
Risk and Concerns:
The major raw material for leather industry is raw hide/skins. Leather is a
natural product and its prices and availability are changing from time to time.
The company is having vast experience in sourcing the raw materials for its
tanneries and leather products divisions from
Cautionary Statement:
Statement in the Management Discussion and Analysis describing the Company's
objectives, projections, estimates, expectation or prediction may be
`forward-looking statement' within the meaning of applicable securities laws
and regulations. Further, the performance of the company is also dependent on
domestic and global economic conditions, government and regulatory policies on
which company is not having any control.
Internal Control System and their
Adequacy:
The company has a proper and adequate system of internal controls to ensure
that all assets are safeguarded and protected against loss from misuse or
disposition and that transactions are authorized, recorded and reported
correctly. Proper checks and controls have been introduced for all the incoming
and outgoing materials. The Audit Committee and Internal Audit Department
regularly review the financial and operating controls at all location of the
Company. The internal control is designed to ensure that the financial and
other records are reliable for preparing financial statements and other data,
and for maintaining accountability of assets.
|
Contingent
Liabilities |
31.03.2008 (Rs. In millions) |
|
Guarantees issued by the Bank |
6.635 |
|
|
|
|
Corporate Guarantee(s) to bank(s) against credit facilities extended
to wholly owned subsidiary in U.K and UAE and a Society |
125.677 |
|
|
|
|
Letter of Credit opened and outstanding |
128.663 |
|
|
|
|
Duty on Export obligation pending |
181.793 |
|
|
|
|
Electricity demand pending litigation |
2.505 |
|
|
|
|
Forward Exchange Contracts |
349.479 |
|
|
|
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Uncalled Liability on Shares partly paid |
4.000 |
Fixed Assets:
v
Land
v
Building
v
Plant and machinery
v
Furniture and Fittings
v
Vehicles
v
Computer
Website details attached
Introduction
From
a single tannery in the 80’s producing finished leather, Subject has emerged as
one of the biggest players in the industry. It started with a commitment to
excel, achieve and deliver the very best. Here, they engineer, optimize and
control every phase of manufacturing process from raw material to finished
products to ensure that end products are of highest quality and also best value
for money.
A
US $50 million group, subject has 15 units, with workforce of over 3000 and has
its presence in over 35 countries. Their commitment to quality is approved by
ISO 9002 certification. Stringent norms of EN 345 make them one of the most
respected manufacturers amongst the importers from European countries. Being
equipped with requisite infrastructure and strict adherence to high standard of
quality, they are able meet CSA, ANZ and SABS standard.
A
perfect blend of highly technical, skilled and semi-skilled work force and
competent executives has helped them in carving an enviable position for
theirselves in the global market.
Three
state-of-art units involved in manufacturing of footwear are ably backed by
their marketing offices strategically located in
To
add on, they are approved vendors to world-wide brands such as Wal-mart,
Filanto, Auchan, Andre, Shoe Fayre,
Their
existence in the trade for over three decades has given them a wealth of
knowledge, which allows them to offer their customers the maximum in choice,
value and quality.
It’s their in-house tanneries sole division provide them
with finest quality leather Soles for their foot wears. To meet the exacting
demand of clients they also import leather from
Honours and Awards
The Company has the distinguished Awards. All having been awarded scores of Performance Awards, some of which are listed below :
Export Award from Council
for Leather Exports for creditable export performance during
year 2004-2005 under the category Saddlery and Harness (Above US$1
million) - Plaque.
RajyaNiryat Puraskar Trophy ( First Position ) 1988-89 Medium size Industry by Government of Uttar Pradesh.
RajyaNiryat Puraskar Trophy ( Second Position ) 1990-91 Medium size Industry by Government of Uttar Pradesh.
RajayaNiryat Puraskar Trophy ( First Position } 1991-92 Medium size Industry by Government of Uttar Pradesh.
RajyaNiryat Puraskar Trophy ( Second Position ) 1995-96 Medium size Industry by Government of Uttar Pradesh.
Small Industries of Export Promotion Department, Government of Uttar Pradesh Trophy ( Second Prize ) for commendable performance in Exports in 1995-96.
Letter of Appreciation, International Shoe Fare, 1996.
Certificate of Merit awarded by C.L.E. Chennai, for commendable performance in Exports in 1997-98.
Certificate and Trophy for showing commendable export performance in 1998-99 in leather Footwear.
Certificate and Trophy for showing commendable performance for Footwear components. Certificate and Trophy for showing commendable performance in finished Leather.
C.L.E. Certificate of Merit for commendable performance in exports for US.$ LOO million to 5,00 million in 1998-99.
Certificate and Trophy - Rajya Niryat Puraskar, 1998-99 ( First Prize ) by Government of Uttar Pradesh.
International Institute of Education and Management /International Udyog Excellence Award, 2000.
Life time Achievement Award to Mr. Mukhtarul Amin for outstanding Achievement in achieving Trophy - Certificate and Trophy National and International Compendium July, 2000.
213i Century Millenium Award to Mr. Mukhtarul Amin by International Institute of Education and Management.
C.L.E. Certificate and Trophy for Exports 1.00 million to 5.00 millions US.$ In 1997-98 in Leather Goods.
CMT REPORT
(Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The 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.
The 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. 48.49 |
|
|
1 |
Rs. 71.89 |
|
Euro |
1 |
Rs. 67.86 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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 and 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 and 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, they have no basis upon which to
recommend credit dealings |
No Rating |
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