MIRA
INFORM REPORT
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Report Date : |
22.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
K H LEATHER INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
829/1, EVR Periyar 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 : |
06.08.1976 |
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Com. Reg. No.: |
18-7182 |
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CIN No.: [Company
Identification No.] |
U19119TN1976PTC007182 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEK00528D |
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Legal Form : |
Private limited liability company |
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Line of Business : |
Manufacturer of Footwear, Shoe Uppers and Wallets. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 1700000 |
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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 satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Basha |
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Designation : |
Manager |
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Contact No.: |
91-9894687537 |
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Date : |
21.07.2008 |
LOCATIONS
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Registered/ Corporate Office : |
829/1, EVR Periyar High Road, Kilpauk, Chennai – 600 010, Tamilnadu, INDIA. |
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Tel. No.: |
91-44-26412432 / 26412708 / 2433 |
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Fax No.: |
91-44-26423237/26427528 |
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E-Mail : |
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Area : |
3000 sq ft (Owned) |
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Factory 1 : |
18, Krishnagiri Bypass Road, Ranipet, Vellore District – 632 401, Tamilnadu, India |
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Tel. No.: |
91-4172-225945 / 225946 / 225947 / 948 |
DIRECTORS
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Name : |
Mr. M. Akber Hussain |
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Designation : |
Director |
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Address : |
13, Rutland Gate, IV Street, Kilpauk, Chennai – 600 010, Tamilnadu |
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Date of Birth/Age : |
13.10.1970 |
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Qualification: |
L Tech |
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Date of Appointment : |
27.10.1988 |
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Name : |
Mr. M. Akther Hussain |
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Designation : |
Director |
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Address : |
13, Rutland Gate, IV Street, Kilpauk, Chennai – 600 010, Tamilnadu |
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Date of Birth/Age : |
03.03.1973 |
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Qualification : |
F Tech |
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Date of Appointment : |
15.03.1991 |
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Name : |
Mr. Mohamed Hashim |
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Designation : |
Director |
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Name : |
Mr. Abdul Halim |
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Designation : |
Director |
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Name : |
Mr. G Kaleemulla |
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Designation : |
Director |
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Name : |
Mr. A Mohmed Rafeeq |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. G. Sreenivasa Rao |
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Designation : |
Company Secretary |
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Address : |
Flat 1C, Oakland - Front Block, 17, Maloney Road, T. Nagar, Chennai - 600 017, Tamilnadu |
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Tel No. : |
91-44-24346890 / 24333665 |
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Mobile : |
91-9840426264 |
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Email : |
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Name : |
Mr. Basha |
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Designation : |
Manager |
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Mobile No. : |
91-9894687537 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 24.09.2005
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Names of Shareholders |
No. of Shares |
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M. Akbar Hussain |
11832 |
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M. Akther Hussain |
11383 |
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A. Mohsina Begum |
1750 |
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Total |
24965 |
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 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Footwear, Shoe Uppers and Wallets. |
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Products : |
Generic Names of the Principal Products of the company are :
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Brand Names : |
"EXTIME" |
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Exports : |
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Products : |
Shoes |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C, D/A and D/P terms, Credit ( 60 Days) |
PRODUCTION STATUS
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Particulars |
Unit |
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Licensed
Capacity |
Installed
Capacity |
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Footwear |
Pairs |
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400000 |
200000 |
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Shoe Uppers |
Pairs |
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400000 |
450000 |
GENERAL
INFORMATION
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No. of Employees : |
500 (Office 15, Factory 485) |
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Bankers : |
v Indian Bank, Park Town Branch, Chennai - 600 003, Tamilnadu v State Bank of India, International Leather Division, 177/1, Poonawala High Road, Kilpauk, Chennai – 600 010, Tamilnadu. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S. Dhanyakumar and Company Chartered Accountants |
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Address : |
Old No.3, New No.5, South Boag Road, Thyagaraya Nagar, Chennai-600017, Tamilnadu. |
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Associates/Subsidiaries : |
v K. H. Arind Limited v Solar Soles
Private Limited v Sara Leather
Industries v Sara Shoes v Khizaria
Leathers |
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Group Concerns : |
v A H Group of Companies |
CAPITAL STRUCTURE
As on 24.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs.100/- each |
Rs.5.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
24965 |
Equity Shares |
Rs.100/- each |
Rs.2.496
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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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 |
2.496 |
2.496 |
2.496 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
349.321 |
301.825 |
267.752 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
351.817 |
304.321 |
270.248 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
2.697 |
0.268 |
0.268 |
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TOTAL |
354.514 |
304.589 |
270.516 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
93.695 |
100.401 |
96.736 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
8.495 |
8.495 |
12.733 |
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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 |
51.434
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30.840 |
48.032 |
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Sundry Debtors |
189.488
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264.969 |
159.613 |
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Cash & Bank Balances |
51.361
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2.732 |
24.112 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
35.640
|
40.188 |
14.539 |
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Total
Current Assets |
327.923
|
338.729 |
246.296 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
73.788
|
140.761 |
83.249 |
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Provisions |
1.811
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2.275 |
2.000 |
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Total
Current Liabilities |
75.599
|
143.036 |
85.249 |
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Net Current Assets |
252.324
|
195.693 |
161.047 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
354.514 |
304.589 |
270.516 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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628.805 |
607.220 |
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Other Income |
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0.000 |
23.909 |
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Total Income |
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628.805 |
631.129 |
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Profit/(Loss) Before Tax |
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34.073 |
0.928 |
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Provision for Taxation |
|
0.275 |
0.000 |
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Profit/(Loss) After Tax |
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33.798 |
0.928 |
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Export Value |
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NA |
586.038 |
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Imports : |
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Raw Materials |
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189.552 |
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Stores & Spares |
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145.686 |
1.399 |
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Capital Goods |
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6.971 |
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Others |
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0.000 |
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Total Imports |
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145.686 |
197.922 |
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Export Value : |
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613.733 |
586.038 |
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Expenditures : |
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Manufacturing Expenses |
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20.079 |
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Administrative Expenses |
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8.616 |
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Raw Material Consumed |
|
594.732 |
535.225 |
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Increase/(Decrease) in Finished Goods |
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(1.406) |
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Salaries, Wages, Bonus, etc. |
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|
13.314 |
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Depreciation & Amortization |
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|
8.665 |
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Other Expenditure |
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45.708 |
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Total Expenditure |
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594.732 |
630.201 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
NA
|
5.37 |
0.15 |
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Net Profit Margin (PBT/Sales) |
(%) |
NA
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5.37 |
0.15 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
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7.76 |
0.27 |
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Return on Investment (ROI) (PBT/Networth) |
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NA
|
0.11 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.21
|
0.47 |
0.32 |
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Current Ratio (Current Asset/Current Liability) |
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4.34
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2.37 |
2.89 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
v
Tommy Hilfiger
v
ECCO
Form 8 Particular for
creation or modification of charges
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Name of the company |
K H LEATHER
INDUSTRIES PRIVATE LIMITED |
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Presented By |
THIRU A HABEEBUR REHMAN, DIRECTOR |
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1) Date and description of instrument creating the change |
Mortgaged deed dated 29.01.1986 executed by the company in favour of State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT) for the term loan of Rs.0.100 millions our of the term loan of Rs.7.200 millions sanctioned by SIPCOT. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term loan of Rs.0.100 millions from the State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT), Chennai-600006 |
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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 and singular the land, buildings and premises situated at Pingi Village Ranipet, Wallajah Taluk, North Arcot District, Tamilnadu, the particulars whereof are described in first schedule all and singular the machinery (whether attached to the said premises or not) Plant, stocks, fixtures, utensils, articles and things now being or which shall at any time hereafter during the continuance of this security be in or upon or belonging to the said premises or used in connection therewith particulars thereof are described in the second Schedule, and which belong to the company or are capable of being transferred by the company but excluding stock in process, finished goods and raw materials intended for manufacturing purposed and all the estate right, title, interest claim and demand of the company into or any of them or any part thereof. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Convened by the company to the SIPCOT to repay to SIPCOT the said sum of Term Loan of Rs.0.100 millions in 10 half yearly installments of Rs.0.010 millions each. The rate of interest will be 3.5% over the IDBI rates for refinance with a minimum of 14%, which shall be the rate for prompt payment of commitment charges and for prompt repayment of the installments of the principle amount and punctual payment of interest, payable quarterly on the last day of quarter of each year per annum will be levied, over an above the normal rate on the entire outstanding amounts and also to pay all costs, charges and expenses and agreeing to comply with other conditions, SIPCOT has a right to recall the entire loan and/or principal or for breach of covenants in the mortgage. Under the aforesaid mortgage, SIPCOT has a right to take possession and sell the mortgaged property without the intervention of the court, appoint a receiver in respect thereof and has also all right to transfer the mortgaged premises on lease or sale and to take over the management of the company. The company is liable to pay all costs, expenses, charges as mentioned in the mortgaged deed and the same will be charged on the mortgaged assets mentioned above. |
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5) Name and Address and description of the person entitled to the charge. |
State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT) No.51 and 52, Greams Road, Thousand Lights Chennai-600006 |
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6) Date and brief description of instrument modifying the charge |
Inter Sa pari passu arrangement dated 24.02.1986 among State Industries Promotion Corporation of Tamilnadu Limited and Tamilnadu Industrial Investment Corporation Limited (TIIC). |
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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. |
Inter Sa pari passu arrangement dated 24.02.1986 among State Industries Promotion Corporation of Tamilnadu Limited and Tamilnadu Industrial Investment Corporation Limited (TIIC) wherein the charge in favour of SIPCOT under English mortgage dated 29.01.1986 for the term loan of Rs.7.200 millions and the charge in favour of the SIPCOT under the joint equitable mortgage and hypothecation dated 28.12.1978 and 29.01.1986 Rs.2.200 millions and additional term loan of Rs.7.100 millions out of the term loan of Rs.7.200 millions, charging the movable and immovable properties of the TIIC under joint equitable mortgage hypothecation dated 28.12.1978 and hypothecation dated 28.12.1978 and 29.01.1986 for the term loan of Rs.2.200 millions charging the movable and immovable properties of the company shall rank pari passu without priority of one over an the other, irrespective of their dates of creatin of the charges. |
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Name of the company |
K H LEATHER
INDUSTRIES PRIVATE LIMITED |
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Presented By |
Mr. Abdul Halim, Managing
Director |
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1) Date and description of instrument creating the change |
An agreement for bills purchased engrossed on 25.10.1983 on non judicial stamp paper of Rs.5/- between the company and Indian Bank, Chennai-3 for foreign bills purchased for Rs.4.500 millions. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Foreign bills purchased and negotiation limit of Rs.4.500 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 |
The company guarantees to the banks all bills railway receipts Bill of lading and documents of title to goods etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The company guarantees to the Indian Bank, that the usance bills that may be negotiated and or discounted and purchased by Bank will be promptly padi and expenses duet there on by the drawee thereof tend default in payment the company irrevocable and unconditionally agrees and undertake to make goods to the bank on demand. |
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5) Name and Address and description of the person entitled to the charge. |
Indian Bank, Park Town Branch, Chennai-600003. |
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6) Date and brief description of instrument modifying the charge |
N.A. |
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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. |
N.A. |
BUSINESS
The company is engaged in manufacturing and exporting of men's and women's leather shoes, leather shoe uppers and leather gift articles such as casual shoes, dress shoes and shoe uppers.
Company’s fixed assets include Land, Building
(Old and New), Plant and Machinery, Vehicles and Furniture and Fittings.
The company has been registered as 100% EOU on
10.10.2003.
Contingent Liabilities :
(Rs In Millions)
|
Particulars |
2004-05 |
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Guarantees given by Bank |
2.000 |
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.42.71 |
|
UK Pound |
1 |
Rs.85.11 |
|
Euro |
1 |
Rs.67.73 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|