MIRA
INFORM REPORT
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Report Date : |
29.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHARMA LEATHER PRODUCTS PRIVATE LIMITED |
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Registered Office : |
60, Beckbagan Row, Kolkata – 700017, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.04.1992 |
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Com. Reg. No.: |
055111 |
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CIN No.: [Company
Identification No.] |
U19129WB1992PTC055111 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS12157F |
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PAN No.: [Permanent
Account No.] |
AAECS5414P |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing and Exporting of Leather Goods |
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 42732 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under severe pressure. Payments are reported as
slow and delayed at times. The company can be considered for small to mediocre business dealings
with slight caution, initially. Mr. Ashish Sharma declined to part with any information insipte of
divulging that the inquiry is from India Mart |
LOCATIONS
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Registered Office : |
60, Beckbagan Row, Kolkata – 700017, West Bengal, India |
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Tel. No.: |
91-33-22521851 |
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E-Mail : |
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Head Office : |
Plot - 44, 10-F East, Topsia East, Calcutta - 700 039, West Bengal |
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Tel. No. |
91-33-22853211 / 32901680 |
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Fax No. |
91-33-22853992 |
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Factory / Warehouse |
16-F, Ghulam Jhilani Khan Road, Calcutta - 700 039, West Benga |
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Tel. No. |
91-33-344 2211 |
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Fax No. |
91-33-476 3275 |
DIRECTORS
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Name : |
Mr. Anil Kumar Sharma |
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Designation : |
Director |
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Address : |
6/1/3 Queens Park, Kolkata – 700019, West Bengal |
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Date of Birth/Age : |
19.09.1955 |
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Date of Appointment : |
02.04.1992 |
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Name : |
Mrs. Usha Sharma |
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Designation : |
Director |
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Address : |
6/1/3 Queens Park, Kolkata – 700019, West Bengal |
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Date of Birth/Age : |
28.01.1958 |
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Date of Appointment : |
02.04.1992 |
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Name : |
Mr. Ashish Sharma |
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Designation : |
Director |
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Address : |
6/1/3 Queens Park, Kolkata – 700019, West Bengal |
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Date of Birth/Age : |
05.08.1978 |
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Date of Appointment : |
01.09.1997 |
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Name : |
Mrs. Deepika Sharma |
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Designation : |
Director |
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Address : |
6/1/3 Queens Park, Kolkata – 700019, West Bengal |
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Date of Birth/Age : |
08.04.1980 |
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Date of Appointment : |
19.12.2005 |
KEY EXECUTIVES
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Name : |
DKS and Company |
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Designation : |
Company Secretary |
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Address : |
173, Mahatma Gandhi Road, First Floor, Kolkata- 700 007 |
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E-Mail ; |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on: 31.03.2007
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Names of Shareholders |
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No. of Shares |
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Mr. Anil Kumar Sharma |
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91280 |
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Mr. Ashish Sharma |
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12510 |
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Mrs. Usha Sharma |
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85010 |
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Mrs. Monica Sharma |
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11000 |
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Prima Farben Overseas Private Limited |
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200 |
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Category |
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Percentage of
Holding |
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Directors of relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of Leather Goods |
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Products : |
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Exports : |
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Countries : |
U.K |
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Imports : |
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Countries : |
Hong Kong. |
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Terms : |
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Selling : |
Contract, L/C and Credit |
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Purchasing : |
Contract, L/C and Credit |
GENERAL
INFORMATION
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Customers : |
Ř Chem India Ř Elegant Fashions Fibre Chemicals Private Limited Ř Guru International Ř T F B |
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No. of Employees : |
50 |
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Bankers : |
Overseas Branch, A. G. Towers, 125 /1, Park Street, Calcutta - 700 016, West Bengal, India.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kapoor and Associates Chartered Accountants |
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Address : |
Flat 1-I First Floor, 5AB, Chowringhee Lane, Kolkata – 700016, West
Bengal |
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Affiliates : |
· Bharat Distributors · Sharma Overseas Limited |
CAPITAL STRUCTURE
As on: 30.09.2006
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs.10/- each |
Rs.2.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs.10/- each |
Rs.2.000 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 |
2.000 |
2.000 |
2.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
8.683 |
12.794 |
14.326 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
10.683 |
14.794 |
16.326 |
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LOAN FUNDS |
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1] Secured Loans |
1.166 |
1.165 |
2.144 |
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2] Unsecured Loans |
16.555 |
11.913 |
1.396 |
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TOTAL BORROWING |
17.721 |
13.078 |
3.540 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28.404 |
27.872 |
19.866 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10.502 |
10.575 |
10.096 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
10.056 |
7.556 |
2.556 |
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DEFERREX TAX ASSETS |
0.073 |
0.073 |
0.033 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
6.250
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6.618 |
4.631 |
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Sundry Debtors |
0.200
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0.234 |
0.175 |
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Cash & Bank Balances |
0.860
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1.557 |
1.413 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1.113
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2.150 |
1.570 |
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Total
Current Assets |
8.423
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10.559 |
7.789 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
0.207
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0.495 |
0.293 |
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Provisions |
0.443
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0.396 |
0.315 |
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Total
Current Liabilities |
0.650
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0.891 |
0.608 |
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Net Current Assets |
7.773
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9.668 |
7.181 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28.404 |
27.872 |
19.866 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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21.176 |
19.891 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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21.176 |
19.891 |
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Profit/(Loss) Before Tax |
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(4.062) |
(1.490) |
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Provision for Taxation |
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0.049 |
0.025 |
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Profit/(Loss) After Tax |
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(4.111) |
(1.515) |
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Expenditures : |
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Depreciation & Amortization |
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0.438 |
0.502 |
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Other Expenditure |
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24.800 |
20.879 |
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Total Expenditure |
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25.238 |
21.381 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
(19.41)
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(7.61) |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
(19.18)
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(7.49) |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(21.46)
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(7.05) |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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(0.38)
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(0.10) |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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0.06
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0.06 |
0.03 |
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Current Ratio (Current Asset/Current Liability) |
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12.95
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11.85 |
12.81 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
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Name of the company |
SHARMA LEATHER PRODUCTS PRIVATE LIMITED |
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Presented
By |
Mr. Ashish
Sharma, Director |
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1) Date and description of instrument creating the change |
23.07.2003 memorandum
recording deposit of title deed packing credit agreement and agreement for
hypothecation of goods FDBP/ FUDBP limit
by executing letter of Hypothecation Regd on 19.08.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.9.500 millions
- Rs.4.500 millions
for PCL Rs.5.000 millions
for FDBP / FUDBP |
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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 that piece
and parcel of land and building existing and or to be constructed thereon
situated at Plot - 44, 10-F, Topsia East, Calcutta - 700 039, West Bengal
measuring 6.0 cottahs more or less. Hypothecation of stock in trade of
leather goods, raw materials, packing materials etc.., stored a t10F East
Topsia, Kolkata |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest: 8.5% or such other rate as may be applicable from time to time margin 255 |
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5) Name and Address and description of the person entitled to the charge. |
Vijaya Bank Overseas Branch, A. G. Towers, 125 /1, Park Street, Calcutta - 700 016, West Bengal, India. |
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6) Date and brief description of instrument modifying the charge |
2.05.2005 Executive of 2
supplementary agreements. Memorandum recording deposit of title deed as a
continuing security |
As per Web Details:
Company Profile:
Subject has acquired expertise in manufacturing leather
bags, leather shoulder bags and leather wallets exactly as per the
specifications and requirements of its private label and well established brand
customers of the world.
The company is run by leaders with a 3 decade rich experience in leather goods
manufacturing. Their next generation leader and Marketing Director is also a
trained and qualified Leather Technologist having acquired his leather making
techniques and educational degrees in leather science from the most esteemed
institute of the world, British School of Leather Technology, U.K.
They are a fast, progressive and focused fashion force with a passion to
manufacture and supply distinctive collection of leather products. Through the
years, they have developed a strong commitment to excellence which is reflected
in the exquisite workmanship, sophisticated designs and an elegant choice of
finishes and colors. They sincerely owe this achievement to their dedicated and
hard working staff members, their fair dealings with their customers and most
importantly the patronage and support given by their valued foreign customers.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.42.59 |
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UK Pound |
1 |
Rs.84.16 |
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Euro |
1 |
Rs.65.99 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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30 |
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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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