MIRA
INFORM REPORT
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Report Date : |
12.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
CALICO TRENDS |
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Registered Office : |
60-A, 150 Feet Road, Jajmau, Kanpur-280010, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
1995 |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partner |
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Line of Business : |
Manufacturer of Unit Sole and Shoe Uppers. |
RATING &
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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Status : |
Satisfactory |
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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 concern having satisfactory
track. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Mohammad Ali |
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Designation : |
Account Manager |
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Date : |
09.05.2008 |
LOCATIONS
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Registered Office : |
60-A, 150 Feet Road, Jajmau, Kanpur – 280 010, Uttar Pradesh, INDIA |
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Tel. No.: |
91-515-2462106 / 2462107 |
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Fax No.: |
91-512-242461422 / 2464902 |
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E-Mail : |
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Website : |
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Area : |
7500 sq ft (Owned) |
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Factory 1 : |
17, Leather Complex, UNNAO – 209801, India (Established in 1999) |
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Factory 2 : |
A, 34/35, Leather Park, Banther UNNAO 209801, India (Established in
2004) |
PARTNERS
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Name : |
Mr. Rehan Ajmal |
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Designation : |
Partners |
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Date of Birth/Age : |
38 Years |
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Qualification : |
Graduate, ISC and Diploma in Footwear from London |
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Name : |
Mr. Mohamed Ajmal |
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Designation : |
Partner |
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Date of Birth/Age : |
62 Years |
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Qualification : |
Under Graduate |
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Name : |
Mr. Ahmed Assan |
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Designation : |
Partner |
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Date of Birth/Age : |
60 Years |
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Qualification : |
Under Graduate |
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Name : |
Mr. Farhan Ajmal |
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Designation : |
Partner |
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Date of Birth/Age : |
35 Years |
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Qualification : |
Graduate |
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Name : |
Mr. Shahab Ahmed |
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Designation : |
Partner |
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Date of Birth/Age : |
33 Years |
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Qualification : |
Graduate |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Unit Sole and Shoe Uppers. |
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Exports : |
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Products : |
Shoe Uppers |
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Countries : |
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Imports : |
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Products : |
Leather Chemicals |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit ( 90 Days), L/C |
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Purchasing : |
Cash and Credit ( 90 Days), L/C |
GENERAL
INFORMATION
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No. of Employees : |
50 |
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Bankers : |
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Facilities : |
Cash Credit from State Bank of India Rs. 100.000 Millions |
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Banking
Relations : |
Satisfactory |
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Memberships : |
Leather Export Promotion Council |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
N.A. |
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Borrowed : |
N.A. |
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Total : |
N.A. |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2008 |
31.03.2007 |
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Sales Turnover |
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1000.000 |
920.000 |
Expected Sales (2008-09) : Rs. 1100.000 Millions
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
·
BASF, Germany
As per website
Partners Profile
Mr. Mohd. Ajmal: Mr. Ajmal is one of the pillars of strength for the group,
who has led the group from one accomplishment to another. Starting at the young
age of 14, he acquired unparalleled knowledge and expertise in raw hide. His
able guidance has helped the company in maintaining high standards of quality,
given that procurement of high quality raw material is one of the most
important aspects of any manufacturing industry. Now with 45 years of robust
experience in this field, he has earned a position of high standing in raw hide
market.
Mr. Ahmad Ahsan: Mr Ahsan is yet another pillar of strength, who with his
experience of 43 years has given comprehensive guidance to the company in the
business of tanning. With his formidable business acumen he has ably set up as
well as managed the manufacturing infrastructure of the group. He also heads
the work force management division.
Mr. Rehan Ajmal: A qualified technician in footwear, Mr. Rehan Ajmal heads
the business development division of the group. Within a short span of 15
years, he has built a strong worldwide marketing network for the group. He is a
visionary leader, whose distinct insights have given an even stronger sense of
direction to the group.
Mr. Farhan Ajmal: After acquiring professional qualification as a leather
technician and a formal training in footwear, Mr. Farhan Ajmal has given 12
years of his service to the group. During this period, the group has witnessed
rapid phases of development and expansion. The company has immensely benefited
from the discerning outlook of a new generation that he has personified. Ever
since his coming, the company’s production has witnessed steady growth.
Mr. Shahab Ahmad: A qualified leather technician who heads the production
division of the company, Mr. Ahmad has been with this company since last 10
years. During this span of time he quickly picked up comprehensive expertise in
leather end products so much so that he has been managing the quality control
section with widely accepted proficiency.
Besides the above key people who
form the basic pillars of strength for the company, the Subject is proud to
have a work force that has always proved its mettle every now and then. Whether
it is in meeting production demands or maintaining unmatched quality standards
of the entire gamut of leather products under its roof, the work force has
never failed to validate its dependability and its capability.
The company has a strong manpower
training and development policy that has paid off over the years. This has been
necessitated by the fact that the company does not compromise on the quality
standards of its products. From time to time, every member of the work force
has to goes through rigorous training that ensures which in turn ensures that
stagnation is weeded out of the work force and every personnel continues honing
his skills in his area of expertise.
A journey of four decades
New Light Tannery (P) Ltd is the
parent company of a group of companies founded in 1960 in the city of Kanpur.
One of the major industrial centres of India situated in the state of Uttar
Pradesh on the banks of the holy river Ganges.
The group started its business
with raw hide but soon diversified into the business of processing vegetable
tanned sole leather and harness leather. Slowly as the business matured the
product quality standards improved. The group learnt its quality management
lessons fast, so much so that by 1970s the company was exporting its products
to Middle East countries.
In the 80s the company entered
into the domain of shoe leather. With its new products, very soon it was
knocking at the doors of European markets. By early 1990s with the onset of
Indian government relaxed market policies the group entered into the field of
manufacture of shoe upper. In the later part of the decade, the group sensing
growing demands in the European market, brought a new end product into its
umbrella – the footwear. By the turn of the century, the company further
diversified into upholstery leather.
And yet, over the last 40 years,
they are doing just what we had started with: building on their reputation for
quality, performance and durability in all their leather products.
Subject is a export house
recognized by the government of India.
Outstanding work culture: Yet another important facet of their business philosophy
are the people within. Necessitated by the fact that the company does not
compromise on the quality standards of its products, every member of the work
force periodically goes through training processes to keep their skills honed.
The personnel are trained in leather technology, updated with current fashion
norms and loaded with new professional qualifications in new trends in
technology. The company also has an elaborate employees welfare policy through
which it implements different plans and schemes for the benefit of its
employees. Because They know that passionate people create outstanding product.
Robust production set-up: A philosophy that exhibits the company’s enduring concern for quality is its belief in having a robust production infrastructure that meets industry standards. The infrastructure includes factory set up, modern tanneries consisting of modern machines imported from Italy, Germany etc. Another aspect of the infrastructure is the standardized business processes that have been widely accepted as standard norms. Besides, the company also recognizes the need of a strong research and development arm as a means to improve on quality. This R&D cell of the company has, from time to time, churned out new products beating old standards of quality and ease of use. Besides, They have conscientiously passed over any gains in economy of production to their customers, which has reflected in their unmatched product pricing.
Market Search
Subject serves customers in more than 15 countries spanning Asia, Europe and North America. It has a strong sales teams and agents spread all over the globe
Production Capacities
The production capacities of Group are as follows:
Leather 18 Millions square feet PER ANNUM
Shoe Uppers 1.5 Million pairs PER ANNIM
Shoes 0.5 Million pairs PER ANNUM
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.38 |
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UK Pound |
1 |
Rs.80.76 |
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Euro |
1 |
Rs.63.89 |
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 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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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45 |
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. |
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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