MIRA
INFORM REPORT
|
Report Date : |
18.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LEATHER EDGE |
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Registered Office : |
RZ-C-19, Gali No.2, Vijay Enclave, Dabri-Palam Road, New Delhi – 110 045,
Delhi |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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IEC No.: |
0503063045 |
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Year of Establishment : |
2004 |
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PAN No.: [Permanent
Account No.] |
AOCPS2461P |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturer, Exporter and Vendor of Leather Office and Desk
Accessories. |
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 |
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Maximum Credit Limit : |
USD 7000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established concern having satisfactory track. Trade
relations are fair. Payments are usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. Nothing adverse reported. |
INFORMATION PARTED
BY
|
Name : |
Mr. Samir Sinha |
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Designation : |
Proprietor |
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Contact No.: |
91-9871305752 |
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Date : |
15.10.2008 |
LOCATIONS
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Registered Office : |
RZ–B–19, Gali No.2, Vijay Encalve, Dabri Palam Road, New Delhi – 110
045, India. |
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Tel. No.: |
91-11-25050059/ 25030567/ 31079635 |
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Mobile No.: |
91-9871305752/ 9313567411 |
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Fax No.: |
91-11-45521294/ 25391740 |
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E-Mail : |
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Website : |
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Area : |
150 sq.mt. |
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Location : |
Owned |
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Factory 1 : |
RZ–B–19, Gali No.2, Vijay Encalve, Dabri Palam Road, New Delhi – 110
045, India. |
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Tel. No.: |
91-11-25050059 |
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Mobile No : |
91-9871305752/ 9313567411 |
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Fax No.: |
91-11-45521294/ 25391740 |
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Area : |
6000 sq ft |
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Location : |
Rented |
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Factory 2 : |
RZ-A 1/180, Vinod Nagar, Vijay Enclave, Dabri Plam Road, New Delhi –
110 045, India |
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Tel. No.: |
91-11-25050059 |
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Fax No.: |
91-11-45521294/ 25391740 |
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Area : |
2000 sq ft |
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Location : |
Rented |
SOLE PROPRIETOR
|
Name : |
Mr. Samir Sinha |
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Designation : |
Proprietor |
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Address : |
RZ-83, Lane No- 2, Dabri, Palam Road, Vaishali, New Delhi – 110 045,
India |
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Date of Birth/Age : |
42 Years |
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Qualification : |
B. Com |
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Experience : |
17 Years |
KEY EXECUTIVES
|
Name : |
Mr. Sanjeev Sinha |
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Mobile No. : |
91-9313567411 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter and Vendor of Leather Office and Desk
Accessories. |
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Products : |
Leather Goods, Purses, Wallets, High profile items, Corporate leather
goods, Desk pads, Business card holders, Paper trays, Letter holders, Letter
openers, Memo holders, Pencil cups, Legal size paper trays, Paper clip
holders, Post it note holders, Cell phone holder, Clock base, Coaster sets,
Desk etc |
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Exports : |
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Products : |
Leather Desktop Sets and Accessories |
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Countries : |
U.S.A |
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Terms : |
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Selling : |
Cash and Credit (60 and 90 days) |
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Purchasing : |
Cash and Credit |
GENERAL
INFORMATION
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Suppliers : |
Own Manufacturing |
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Customers : |
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No. of Employees : |
35 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anurajan and Rahul and Company Chartered Accountant |
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Address : |
New Delhi |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.1.536 Millions |
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Borrowed : |
-- |
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Total : |
Rs.1.536 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
|
31.03.2008 |
31.03.2007 |
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Sales Turnover |
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22.500 |
20.200 |
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Profit/Loss for the year |
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12% |
12% |
Expected Sales (2008-09) : Rs.40.000 Millions
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.536 |
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2] Share Application Money |
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|
0.000 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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1.536 |
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LOAN FUNDS |
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1] Secured Loans |
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1.085 |
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2] Unsecured Loans |
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0.000 |
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TOTAL BORROWING |
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1.085 |
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DEFERRED TAX LIABILITIES |
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0.773 |
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TOTAL |
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3.394 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.511 |
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Capital work-in-progress |
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|
0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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1.746 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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|
0.237 |
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Other Current Assets |
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|
0.268 |
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Loans & Advances |
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|
0.135 |
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Total
Current Assets |
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2.386 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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0.503 |
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Provisions |
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|
0.000 |
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Total
Current Liabilities |
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|
0.503 |
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Net Current Assets |
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1.883 |
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MISCELLANEOUS EXPENSES |
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|
0.000 |
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TOTAL |
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3.394 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2006 |
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Sales Turnover |
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3.701 |
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Other Income |
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0.000 |
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Total Income |
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3.701 |
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Profit/(Loss) Before Tax |
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|
0.254 |
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Provision for Taxation |
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0.000 |
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Profit/(Loss) After Tax |
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0.254 |
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Earnings in Foreign Currency : |
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Export Earnings |
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3701466 |
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Expenditures : |
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Cost of Goods Sold |
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2.152 |
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Administrative Expenses |
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0.500 |
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Raw Material Consumed |
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|
0.283 |
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Salaries, Wages, Bonus, etc. |
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0.264 |
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Interest |
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|
0.086 |
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Depreciation & Amortization |
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|
0.124 |
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Other Expenditure |
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|
0.038 |
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Total Expenditure |
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3.447 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2006 |
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PAT / Total Income |
(%) |
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6.86 |
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Net Profit Margin (PBT/Sales) |
(%) |
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6.86 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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6.51 |
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Return on Investment (ROI) (PBT/Networth) |
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0.16 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.03 |
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Current Ratio (Current Asset/Current Liability) |
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4.74 |
LOCAL AGENCY FURTHER
INFORMATION
|
Parameters |
Details |
|
Existence Verification |
|
|
Name |
Samir Sinha |
|
Address |
Leather Edge RZ – B – 19, Gali No- 2, Vijay Enclave, Dabri Palam Road, New Delhi –
110 045, Delhi, India |
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Phone/ Mobile Numbers |
91-11-25050059/ 91-9871305752 |
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Fax Numbers |
91-11-45521294 |
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Statutory Approvals |
Proprietorship Company |
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Legal Status of Firm |
AOCPS2461P |
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Income Tax Registration |
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Central Sales Tax Registration |
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State Sales Tax Registration |
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Service Tax Registration |
07410273932 |
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VAT/ TIN Registration |
AOCPS2461PXM001 |
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Excise Registration |
0503063045 |
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Emp PF Reg Number |
Not Applicable |
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Company ESI Reg. Number |
Not Applicable |
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RBI Code Number |
NIL |
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Credibility Factors |
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Years of Establishment |
Feb-2002 |
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Turn Over |
ANNEXED |
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Turn Over Year |
ANNEXED |
Trade Reference
- Milonga
- DACASSO
- Roma (Italy)
- Flourida Lalifornia
As Per Websies
Established in the year 1999, at New Delhi, they subject are one of the manufacturers and exporters of a wide range
of genuine and pure leather office and desk accessories. Offered in a wide
range of designs and finishes, the category range they offer include leather
card holders, desk organizers, leather trays, leather photo frames. Apart from
this, they also offer other leather based fancy products including office desktop accessories, small
accessories, bar leather accessories and home accessories
.
Successfully meeting the usage and promotion requirements of corporate and
other business establishments, they are a 100% export oriented unit with major
markets in U.S.A. and Europe. Mr. Samir
Sinha leads their business operations. His industry expertise and quality
conscious approach combined with service support of experienced team of
designers and technicians allow them to offer exclusive range of 100% genuine
leather products.
Today, they have carved a separate identity for their leather based product range
in highly competitive international markets. Further, their consistent
performance and product’s availability at competitive prices has also helped
them to make many quality conscious clients globally
Business Details
Some of the essential business details
of our company include:
- Capital in Dollars : US $ 1,00,000
- Export Percentage : 100%
- Sales Volume : US $ 3,00,000
- No of Production Lines : 2
- Export Markets : U.S.A. and Europe
- OEM Service Provided : Yes
- Production Type : Semi-automatic
- Monthly Production Capacity : As per requirement
Strengths
Some of the factors that assist them in marking a distinguished identity
in the global markets include:
- Quality
leather office/corporate accessories
- Competitive
prices
- Timely
delivery of ordered consignment
Manufacturing Process
They strongly believe in effectively utilizing technology at all levels
of production. To support their production operations, they have with them:
- Modern
manufacturing unit housing latest machines and equipment
- Talented and
experienced manpower including machine operators, engineers and other
associated professionals
The judicious mix between man and machine allow them to work together
towards delivering high value and international class leather products.
Apart from this, some of the other steps undertaken by them to meet the
production requirements include:
Sourcing finished leather from tanneries in South India
Cutting/splitting leather for style of pattern
Assembling/pasting the cut leather with the help of adhesives
RandD Facilities
Their well-developed RandD setup allows them to:
- Effectively
involve innovative techniques in meeting the production demands
- Produce
products at par with existing trends in the market
- Continually
enhance their product range as per the emerging market demands
Warehousing Facilities
Their spacious and well-maintained warehousing facilities assist them
in:
- Storing bulk
products to meet prevailing market demands
- Storing raw
materials used in the production processes
Clientele
Their consistent performance has assisted them in meeting the leather
office and desk accessories demands for corporate as well as residential usage.
Presently, they are catering to major markets in U.S.A. and Europe region. 
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.48.68 |
|
UK Pound |
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.65.70 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|