MIRA
INFORM REPORT
|
Report Date : |
17.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ARVIND FOOTWEARS PRIVATE LIMITED |
|
|
|
|
Registered Office : |
E-56, Panki Industrial Area, Site III, Kanpur - 208 022, Uttar Pradesh
|
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
17.10.1996 |
|
|
|
|
Com. Reg. No.: |
20-20863 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U18104UP1996PTC020863 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
KNPA01414A |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporters of Leather Footwear
and Components |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 260000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track. General financial position is satisfactory. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office/Factory : |
E-56, Panki Industrial Area, Site III, Kanpur - 208 022, Uttar
Pradesh, India |
|
Tel. No.: |
91-512-2692518 / 2692519 / 20 / 21 / 22 |
|
Fax No.: |
91-512-2692519 / 2290671 |
|
E-Mail : |
marketing@arvinco.com |
|
Website : |
DIRECTORS
|
Name : |
Mr. Arvind Bagla |
|
Designation : |
Managing Director |
|
Address : |
2A/377, A-2 Azad Nagar, Kanpur – 208 002, Uttar Pradesh, India |
|
Date of Birth/Age : |
22.06.1965 |
|
Date of Appointment : |
17.10.1996 |
|
|
|
|
Name : |
Mr. Amit Vikram Bagla |
|
Designation : |
Whole Time Director |
|
Address : |
0-9, Kamla Nagar, Kanpur – 208 005, Uttar Pradesh, India |
|
Date of Birth/Age : |
09.09.1976 |
|
Date of Appointment : |
17.10.1996 |
KEY EXECUTIVES
|
Name : |
S K Gupta and Company |
|
Designation : |
Company Secretary |
|
Address : |
9, Roland Complex, Upper Floor, 37/17, Westcott Building, The Mall,
Kanpur – 208 001, Uttar Pradesh, India |
|
Tel No.: |
91-512-2315123 |
|
Mobile No.: |
91-9415042137 |
|
E-Mail : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
No. of Shares |
|
Arvind Bagla |
129015 |
|
Amit Vikram Bagla |
12015 |
|
Udit Jalan |
129000 |
|
|
|
|
Total |
270030 |
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
|
Directors or relatives of directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporters of Leather Footwear
and Components |
|
|
|
|
Products : |
·
Western
Cowboy Boot ·
Men's,
Ladies and Children's casual Shoes ·
Sandals |
GENERAL
INFORMATION
|
Bankers : |
·
State Bank of Hyderabad Canal Road Branch, 25/18 Canal Road, Kanpur
– 208 001, Uttar Pradesh, India ·
HDFC Bank |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Santosh Kumar Gupta and Associates Chartered Accountants |
|
Address : |
12/110, G-Block, Kidwai Nagar, Kanpur – 208 011, Uttar Pradesh, India |
CAPITAL STRUCTURE
(As on 30.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600000 |
Equity Shares |
Rs.10/- each |
Rs.6.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
270030 |
Equity Shares |
Rs.10/- each |
Rs.2.700
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2.700 |
2.700 |
2.700 |
|
|
2] Share Application Money |
1.943 |
1.944 |
1.944 |
|
|
3] Reserves & Surplus |
46.404 |
40.246 |
26.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
51.047 |
44.890 |
31.544 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
55.033 |
44.711 |
29.317 |
|
|
2] Unsecured Loans |
1.659 |
1.582 |
1.278 |
|
|
TOTAL BORROWING |
56.692 |
46.293 |
30.595 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
107.739 |
91.183 |
62.139 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
36.073 |
29.191 |
17.867 |
|
|
Capital work-in-progress |
0.000 |
0.469 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.300 |
0.300 |
0.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
27.141
|
25.322 |
13.351 |
|
|
Sundry Debtors |
67.348
|
41.722 |
33.608 |
|
|
Cash & Bank Balances |
12.551
|
8.302 |
6.922 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
7.095
|
10.165 |
9.379 |
|
Total
Current Assets |
114.135
|
85.511 |
63.260 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
41.252
|
19.592 |
16.519 |
|
|
Provisions |
1.517
|
4.699 |
2.775 |
|
Total
Current Liabilities |
42.769
|
24.291 |
19.294 |
|
|
Net Current Assets |
71.366
|
61.220 |
43.966 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.003 |
0.006 |
|
|
|
|
|
|
|
|
TOTAL |
107.739 |
91.183 |
62.139 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
217.220 |
204.500 |
147.910 |
|
|
Other Income |
0.657 |
0.360 |
0.213 |
|
|
Total Income |
217.877 |
204.860 |
148.123 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
7.725 |
18.045 |
11.883 |
|
|
Provision for Taxation |
1.567 |
4.392 |
2.775 |
|
|
Profit/(Loss) After Tax |
6.158 |
13.653 |
9.108 |
|
|
|
|
|
|
|
|
FOB Value |
186.847 |
166.966 |
143.551 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
4.431 |
3.261 |
2.087 |
|
|
Stores & Spares |
1.207 |
0.745 |
0.180 |
|
|
Capital Goods |
7.362 |
0.662 |
2.429 |
|
Total Imports |
13.000 |
4.668 |
4.696 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Financial charges |
4.789 |
3.100 |
2.431 |
|
|
Increase/(Decrease) in Finished Goods |
6.910 |
(8.067) |
(1.285) |
|
|
Depreciation & Amortization |
4.039 |
2.898 |
2.474 |
|
|
Other Expenditure |
194.414 |
188.884 |
132.620 |
|
Total Expenditure |
210.152 |
186.815 |
136.240 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.83
|
6.66 |
6.15 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.56
|
8.82 |
8.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.14
|
15.73 |
14.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.40 |
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.95
|
1.57 |
1.58 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.67
|
3.52 |
3.28 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
|
Name of the company |
ARVIND FOOTWEARS PRIVATE LIMITED |
|
Presented By |
State Bank of
Hyderabad Branch-Canal
Road, Kanpur |
|
1) Date and description of instrument creating the change |
Agreement of
hypothecation of Goods, Machinery, Book Debts and Other assets dated
17.12.1997 and registered on 27.03.1998 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.800 millions |
|
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 |
First charge on
Current assets by way of hypothecation of Raw Materials, stock in process,
finished goods, Consumables spare parts, Book Debts and Receivables of the
Company. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
As per RBI Directives
from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of Hyderabad Canal Road Branch, 25/18 Canal Road, Kanpur – 208 001, Uttar Pradesh,
India |
|
6) Date and brief description of instrument modifying the charge |
Hypothecation
Agreement dated 17.12.2005 for extension of equitable mortgage (earlier
modification on 17.04.1998, 16.09.1998, 25.01.1999, 28.06.1999, 27.03.2000,
18.10.2000, 14.09.2001, 14.01.2004 and 11.01.2005 to enhance the limits upto
Rs.43.000 millions |
|
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. |
To enhance credit
facilities of Rs.43.000 millions
shall now also be collaterally secured by equitable mortgage by deposit of
title deeds in respect of land measuring 7960 sq. ft. bearing plot No. E-56,
Panki Site – III, Kanpur along with all the Building, structure now standing
thereon and together with the constructions that may hereafter be made
thereon and together with the constructions that any hereafter be made
thereon and together with the constructions that may herein after be made
thereon and also together with the fixtures, fittings, Tube wells and other
things thereto, free from all other charges and encumbrances, other terms and
conditions remained the same. |
|
Corporate
identity number of the company |
U18104UP1996PTC020863 |
|
Name of the
company |
ARVIND FOOTWEARS PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
E-56, Panki Industrial Area, Site III, Kanpur - 208 022, Uttar
Pradesh, India |
|
This form is for |
Modification of charge |
|
Type of charge |
Immovable
property |
|
Particular of
charge holder |
State Bank of Hyderabad Canal Road Branch, 25/18 Canal Road, Kanpur – 208 001, Uttar Pradesh,
India |
|
Nature of
instrument creating charge |
·
Memorandum for
recording extension of mortgage by deposit of title deeds (SME-7) ·
Letter of
confirmation for extension of mortgage by deposit of title deeds (SME-8) |
|
Date of
instrument Creating the charge |
21.07.2008 |
|
Amount secured by
the charge |
Rs.119.400 millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate of
interest 1.
On Working
Capital @ 3.25% below State Bank of Hyderabad Prime Lending Rate. Present effective
rate is 10.25% per annum with monthly rests or at such other rate(s) as may
be notified by the Bank to the Borrower from time to time. 2.
On Term Loan
@ 1.50% below State Bank of Hyderabad Prime Lending Rate. Present effective
rate is 12.00% per annum with monthly rests or at such other rate(s) as may
be notified by the Bank to the Borrower from time to time. ·
Terms of
repayment Working Capital – Repayable on demand Term Loan – As per existing repayment schedule. ·
Margin 25% on Raw Material – Imported / Indigenous 25% on Semi Finished Goods 25% on Finished Goods 50% on Domestic Receivables 25% on Export Packing Credit 25% on Letter of Credit 25% on BG ·
Extent and
operation of the charge The Company’s immovable properties as mentioned here under are mortgaged
to collaterally secure various credit facilities aggregating to Rs.119.400
millions granted by the Bank to the Borrower. |
|
Particulars of
the property charged |
Equitable
mortgage by deposit of lease deeds in respect of Company’s following immovable
properties :- ·
Factory land
and building situated at E-56, Panki Site – III, Industrial Area, Kanpur ·
Plot No.
E-1, Panki Site – III, Industrial Area, Kanpur Together with all
the building, structures now standing thereon and the construction that may
hereafter be made thereon and also together with the fixtures, fittings and
other things, free from all other charges and encumbrances. |
|
Particulars of
the present modification |
The enhanced
credit facilities aggregating to Rs.119.400 millions shall now also be
collaterally secured against equitable mortgage of Company’s immovable
properties. |
Web Details
Profile
They introduce themselves as manufacturer exporters of all kinds of footwear and components for last so many years having two manufacturing facilities situated at Kanpur in the State of Uttar Pradesh around 500 KM south east of New Delhi capital of India. At present the activities are focused towards manufacture Cowboy Western Boots and all kids of Children's, Ladies, Men's Sandals and Casual Shoes primarily catering to Scandinavian and North American markets. They are privileged to be associated with top brands of Scandinavia and USA.
The
manufacturing facility has its own borewell to care of water needs and electric
generators to run the whole facility at all the location besides modern
equipment for fabrication of footwear and components by either Italian or
Taiwanese machines. They also take pride in having a strong product development
department headed by a senior person.
They
have a capacity to manufacture around 800 pairs per shift with a total capacity
of 1600 pairs per day based on 300 days of working per year. The company has a
locational advantage being situated on Indo- Gangetic belt where maximum number
of Indian cattle population exists beside Kanpur has around 175 small/big
tanneries producing chrome upper/harness and quality sole leather.
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.48.86 |
|
UK Pound |
1 |
Rs.84.22 |
|
Euro |
1 |
Rs.65.51 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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
|
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 |
|