MIRA
INFORM REPORT
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Report Date : |
25.03.2008 |
IDENTIFICATION DETAILS
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Name : |
SHAH BROTHERS |
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Registered Office : |
Shah House, 1,
Manook Lane, 1st Floor, Kolkata-700001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Com. Reg. No.: |
1944 |
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Legal Form : |
Partnership
Concern with an Unlimited Liability of the Partners |
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Line of Business : |
Trader of Tea
(CTC, Orthodox and Darjeeling) |
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 200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The concern is a
Star Trading House. Subject is a well established concern having fine track.
Trade relations are fair. The concern is doing well. It’s payments are
correct and as per commitment. The concern can
be considered good for normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in a medium to long run. |
INFORMATION PARTED
BY
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Name : |
Ms. Deepa Shah |
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Designation : |
International Marketing Manager |
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Mobile No: |
91-9903007174 |
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Date : |
25.03.2008 |
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Name: |
Mr. Devan Shah |
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Designation: |
CEO |
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Mobile No: |
91-9831019129 |
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Date: |
25.03.2008 |
LOCATIONS
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Registered Office : |
Shah House, 1,
Manook Lane, 1st Floor, Kolkata-700001, West Bengal, India |
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Tel. No.: |
91-33-22359201/
1528/ 8161/ 22342893 |
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Fax No: |
91-33-22358161/
9426 |
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E-Mail : |
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Area : |
6000 Sq.ft. |
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Location : |
Owned |
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Branch : |
Located at
Moscow, Coimbatore |
PARTNERS
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Name : |
Mr. Shashikant B.
Shah |
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Designation : |
Partner |
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Mobile No.: |
91-9831107174 |
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Date of Birth/Age : |
54 years |
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Qualification : |
Graduate |
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Experience : |
47 years |
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Name : |
Mr. Hasmuk B.
Shah |
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Designation : |
Partner |
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Date of Birth/Age : |
68 years |
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Qualification : |
Graduate |
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Experience : |
52 years |
KEY EXECUTIVES
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Name : |
Ms. Deepa S. Shah |
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Designation : |
Export Manager /
International Marketing Manager |
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Mobile No.: |
91-9903007174 |
BUSINESS DETAILS
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Line of Business : |
Trader of Tea
(CTC, Orthodox and Darjeeling) |
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Products : |
CTC, Orthodox and
Darjeeling teas. |
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Exports to : |
UAE, Middle East
(Iran, Iraq and Syria), Jordan, Afghanisthan, Pakistan, Russia, CIS, Canada,
Germany and Europe |
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Terms : |
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Selling : |
Cash and Credit,
L/C and T/T |
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Purchasing : |
Cash and Credit (30/60
Days) |
GENERAL INFORMATION
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No. of Employees : |
100 |
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Bankers : |
Oriental Bank of
Commerce Brahore Road
Branch, Kolkata |
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Facilities : |
The concern
enjoys Cash Credit facility of Rs.100.000 Millions from its banker |
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Banking Relations : |
Satisfactory |
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Auditors : |
S. L. Agarwal
& Company Chartered
Accountants |
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Associates/Subsidiaries : |
Consolidate Tea
Corporation, Kolkata Line of Business
: Trader of Tea and Supply to Indian Army |
CAPITAL STRUCTURE
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Capital
Investment : |
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Owned : |
Rs. 50.000 Millions |
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Borrowed : |
0.000 |
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Total : |
Rs. 50.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
360.000 |
450.000 |
400.000 |
Expected Sales :
March 2008 – Rs.360.000 Millions
Note:- Decrease in turnover due to reduction in the rates of dollars.
LOCAL AGENCY FURTHER INFORMATION
Website Details :
Subject have been in existence since last three generations. That means over six decades of experience in tasting and blending teas of various qualities. Being a traditional, family owned enterprise, the company is proud of the reputation it has built for themselves. Shah Brothers is one of the largest stockists of CTC, Orthodox and Darjeeling Teas in India.
Subject has the very best of CTC, Premium CTC, Orthodox and Darjeeling Teas.
They also offer Premium Barooti and Kalami Teas that are especially suitable
for Gulf countries. In addition to fine herbal and flavored teas following are
the list of their brand teas:
v Classic Assam Orthodox Tea
v Classic Darjeeling Tea
v Classic Nilgiri Tea
v Classic CTC Tea
v Double Lion CTC Tea
v Princess Deepa Assam Orthodox
v Princess Deepa CTC Tea
v Heritage
v Imperial
v Premium
Tea contributes to our daily intake of certain nutrients, it provides a number
of vitamins and minerals. Recent studies and researches identifies teas
potential health benefit. It is reasonable to conclude that drinking tea is
compatible with dietary advice to prevent number of diseases, thereby helping
to promote overall health and well-being. Following are the benefits of tea:
Tea fights human lethal diseases such as cancer and metastasis
v
Supports bone mineralization
v
Protects teeth against dental
carries
v
Tea consumption is linked to
protection from heart diseases and strokes
v
Tea has 'flavonoids' which
has excellent anti-oxidants properties
Subject maintains extremely high standards so as to ensure that the teas are of
best quality. The expert tasters evaluate different teas individually for the
taste, flavor, color, strength and other attributes. Once these blends are
created, they are packed and shipped with utmost care. The company has in-house
warehouses and packing units, where the final stage of production is carried
out with highest priority to hygiene.
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 |
|
US Dollar |
1 |
Rs.40.14 |
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UK Pound |
1 |
Rs.80.14 |
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Euro |
1 |
Rs.62.59 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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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 |
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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
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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/normal. |
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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PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions