MIRA
INFORM REPORT
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Report Date : |
26.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
FARIDA SHOES PRIVATE LIMITED |
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Registered Office : |
151/4, Mount Poonamlle Road, Ramapuram, Chennai – 600 089, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.09.1976 |
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Com. Reg. No.: |
18-7207 |
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CIN No.: [Company
Identification No.] |
U19119TN1976PTC007207 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEF00075F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Leather Closed Shoes, Leather Shoes Uppers, Shoe
Components and Exporters of Footwear and Footwear Components. |
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 1000000 |
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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 and a part of Farida
Group, a well-reputed medium sized group in south India. Trade relations are fair.
Business is active. General financial position is satisfactory. Payments are
reported as usually made as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
151/4, Mount Poonamlle Road, Ramapuram, Chennai-600089, Tamilnadu,
India |
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E-Mail : |
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Website : |
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Factory : |
37, Jalal Road, Ambur -635802., Vellore District, Tamilnadu, India |
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Tel. No.: |
91-4174-244301/ 302/ 303/ 304/ 305 |
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Fax No.: |
91-4174-244302 |
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Mobile No: |
91-9894610836 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Rafeeque Ahmed Mecca |
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Designation : |
Director |
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Address : |
10, Kothari Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India |
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Date of Birth/Age : |
17.09.1947 |
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Date of Appointment : |
01.01.2000 |
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Name : |
Mr. Irshad Ahmed Mecca |
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Designation : |
Director |
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Address : |
10, Kothari Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India |
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Date of Birth/Age : |
17.08.1968 |
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Date of Appointment : |
01.01.2000 |
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Name : |
Mr. Ashfaque Ahmed Mecca |
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Designation : |
Director |
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Address : |
10, Kothari Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India |
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Date of Birth/Age : |
04.05.1973 |
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Date of Appointment : |
01.01.2000 |
KEY EXECUTIVES
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Marketing Team : |
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Name : |
Mr. Bharanidhar R.B |
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Tel. No.: |
91-44-2252 2695 |
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Fax No.: |
91-44-2252 2697 |
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Mobile No: |
91-98408 91842 |
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E-Mail : |
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Name : |
Mr. Chinni S |
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Tel. No.: |
91-44-2252 2616 |
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Fax No.: |
91-44-2252 2697 |
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Mobile No: |
91-98408 91840 |
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E-Mail : |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2006)
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Names of Shareholders |
No. of Shares |
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M Israr Ahmed |
35 |
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Farida Holdings Private Limited |
49865 |
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Total |
49900 |
(As on 30.09.2007)
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Equity Share
Breakup |
Percentage of
Holding |
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Category |
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Bodies Corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Leather Closed Shoes, Leather Shoes Uppers, Shoe
Components and Exporters of Footwear and Footwear Components. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Shoe Uppers |
Pairs |
2800000 |
1875000 |
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Full Shoes |
Pairs |
2400000 |
2400000 |
GENERAL
INFORMATION
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Bankers : |
·
State Bank of India Leather International Branch, Chennai –
600 010, Tamilnadu, India ·
ICICI Bank ·
Indian Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kalyanasundaram and Company Chartered Accountants |
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Address : |
18 (Old 22) Second Cross Street, Lake Area, Nungambakkam, Chennai –
600 034, Tamilnadu, India |
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Tel. No.: |
91-44-28172873 |
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Telefax No.: |
91-44-28175393 |
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E-Mail : |
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Associates/Subsidiaries : |
Farida Shoes Pacific Pte Limited |
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Holding Company : |
Farida Holdings Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs.100/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
49900 |
Equity Shares |
Rs.100/- each |
Rs.4.990
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
4.990 |
4.990 |
4.990 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
195.364 |
182.159 |
179.925 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
200.354 |
187.149 |
184.915 |
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LOAN FUNDS |
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1] Secured Loans |
458.418 |
216.019 |
109.303 |
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2] Unsecured Loans |
94.458 |
13.877 |
13.877 |
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TOTAL BORROWING |
552.876 |
229.896 |
123.180 |
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DEFERRED TAX LIABILITIES |
26.408 |
25.909 |
24.816 |
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TOTAL |
779.638 |
442.954 |
332.911 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
229.935 |
156.315 |
134.774 |
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Capital work-in-progress |
106.094 |
1.410 |
0.000 |
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INVESTMENT |
7.284 |
9.391 |
6.401 |
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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 |
353.543 |
204.072 |
149.913 |
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Sundry Debtors |
48.333 |
47.388 |
31.546 |
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Cash & Bank Balances |
17.260 |
3.261 |
6.340 |
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Other Current Assets |
54.348 |
73.028 |
69.706 |
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Loans & Advances |
215.235 |
208.629 |
46.113 |
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Total
Current Assets |
688.719 |
536.378 |
303.618 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
232.094 |
246.570 |
102.957 |
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Provisions |
21.481 |
13.970 |
8.925 |
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Total
Current Liabilities |
253.575 |
260.540 |
111.882 |
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Net Current Assets |
435.144 |
275.838 |
191.736 |
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MISCELLANEOUS EXPENSES |
1.181 |
0.000 |
0.000 |
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TOTAL |
779.638 |
442.954 |
332.911 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
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2133.909 |
NA |
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Other Income |
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0.000 |
NA |
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Total Income |
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2133.909 |
NA |
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Profit/(Loss) Before Tax |
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21.215 |
NA |
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Provision for Taxation |
|
8.010 |
NA |
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Profit/(Loss) After Tax |
|
13.205 |
NA |
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Earnings in Foreign Currency : |
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1689.223 |
1548.309 |
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Imports : |
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Raw Materials |
|
234.534 |
373.959 |
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Capital Goods |
|
36.902 |
1.729 |
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Machinery Spare Parts |
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2.411 |
5.728 |
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Total Imports |
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273.847 |
381.416 |
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Total Expenditure |
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2112.694 |
NA |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
0.62
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NA |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
0.99
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NA |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.31
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NA |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.11
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NA |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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4.03
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2.62 |
1.27 |
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Current Ratio (Current Asset/Current Liability) |
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2.72
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2.06 |
2.71 |
LOCAL AGENCY
FURTHER INFORMATION
Note
The Registered Office of the Company has been shifted from No. 162 (Old
936 Periyar EVR High Road, Chennai – 84, Tamilnadu, India to the present
address w.e.f. 07.09.2007
Form No. 8
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Name of the company |
FARIDA SHOES PRIVATE LIMITED |
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Presented By |
State bank of
India Leather International Branch, Chennai – 600 010 |
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1) Date and description of instrument creating the change |
26th
March 1988 Deed of
Hypothecation dated 26.03.1998 assets in Form C2. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.84.825
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 |
Goods, Company’s
Stock of Raw Skins, skin Under Process, Semi finished leather, cut
Components, Finished Uppers and shoes and products under process, consumables
and accessories. Debts and Assets
: Company’s Present and future Book debts, outstanding moneys, receivables,
claims, bills, Contracts, engagements securities, investments, rights and
assets. EM on the Units
factory land and buildings, pledge of units plant and Machinery. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Advance repayable
on Demand charges to operate till repayment. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
India Overseas Branch,
Chennai – 600 001 Transfer to State Bank of India Leather International Branch, Chennai – 600 010, Tamilnadu, India With effect from
29.04.1995 |
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6) Date and brief description of instrument modifying the charge |
23rd
November 2005 ·
Supplemental
Agreement of Loan for increase in the overall limit in Form C.1-A ·
Supplemental
Agreement of Hypothecation of goods and assets for increase in the overall
limit in Form C.2-A. ·
Letter
regarding the grant of individual limits within the overall limit in Form C.5 All the above
documents were made on 23rd November 2005 and the same modification
of charge |
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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. |
Effect of Modification The various credit
facilities enjoyed by the Company has now been revised to Rs.416.500 millions
as follows:
(*) with full
interchangeability between EPC and FDB (Non-LC) Limits. Terms and Conditions Rate of Interest Pre-Shipment : As
per extent rates in force from time to time. Presently : Upto
180 days – 3.75% below SBAR (10.25%) effective rate 6.50% p.a. Beyond 180 days
up to 270 days 2.10% below SBAR (10.25%) effective rate 8.15% p.a. Post Shipment Demand Bills : 3.75% below SBAR (10.25%) Effective Rate
6.50% p.a. Usance Bills Upto 90 days –
3.75% below SBAR (10.25%) Effective Rate 6.50% p.a. Beyond 180 days
up to 6 months from the date of shipment : 3.75% below SBAR (10.25%)
Effective Rate 6.50% p.a. Beyond 6 months :
2.50% above SBAR (10.25%) Effective Rate 12.75% p.a. Corporate Loan Interest at the
rate of 0.75% p.a. Below SBAR with a minimum of 9.50 p.a. with monthly rests. The Corporate
Loan of Rs.62.500 millions is repayable in 36 monthly instalments: First 35 monthly
instalments of Rs.1.700 millions each and last instalment of Rs.3.000
millions Margin
Securities Hypothecation of
stocks of raw materials, stocks in process, finished goods, consumables,
stores, spares etc, backed by export orders, goods covered under documents of
title and extension of charge on all assets of the Company created / to be
created in future. All the above
securities are already hypothecated / mortgaged with State bank of India, Leather International
Branch, Chennai by way of First Charge and they shall continue to secure the
present reduced limit of Rs.416.500 millions together with interest, costs,
charges and all other expenses which may be debited to the appropriate
account from time to time. All other terms and conditions remains the same. |
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Corporate
identity number of the company |
U19119TN1976PTC007207 |
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Name of the
company |
FARIDA SHOES PRIVATE LIMITED |
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Address of the registered
office or of the principal place of
business in India of the company |
151/4, Mount Poonamlle Road, Ramapuram, Chennai – 600 089, Tamilnadu,
India |
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This form is for |
Modification of
charge |
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Type of charge |
Immovable
property |
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Particular of
charge holder |
State Bank of India Leather International Branch, Chennai – 600 010, Tamilnadu, India |
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Nature of
instrument creating charge |
No Instruments,
Extension of Equitable Mortgage by Deposit of title deeds Company’s immovable
Property (2 Nos.) |
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Date of
instrument Creating the charge |
11.04.2007 |
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Amount secured by
the charge |
Rs.961.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate of
interest As per Modification Dated 19.01.2007 ·
Terms of
repayment As per Modification Dated 19.01.2007 ·
Margin As per Modification Dated 19.01.2007 ·
Extent and
operation of the charge As per Modification Dated 19.01.2007 ·
Others Farida Shoes Private Limited Limit : Rs.689.500 millions Chennai Footwear Private Limited : Rs.272.000 millions |
Operating Results
The operations during the year resulted in a profit of Rs.21.215
millions. After providing an amount of Rs.8.010 millions towards income tax, the
balance profit is being carried to Balance Sheet.
With a view to conserve the resources of the company, the Directors do
not recommend any dividend on the equity shares of the Company.
Fixed Assets
·
Land
·
Building
·
Plant and Machinery
·
Electrical Fittings
·
Furniture and Fittings
·
Other Office Equipments
·
Computers
·
Vehicles
·
Cutting Dies
Web Details
Subject was established in the year 1976 at Ambur. It is a full shoe factory, being one of the biggest facilities in South India with a capacity of 14,000 pairs per day.
Subject specializes in making cemented and moccasin construction articles. The
factory is certified with ISO 9001:2000 from BVQI.
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] 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.49.97 |
|
UK Pound |
1 |
Rs.75.45 |
|
Euro |
1 |
Rs.64.21 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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. |
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 |
|