MIRA
INFORM REPORT
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Report Date : |
10.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SIERRA TRADING PRIVATE LIMITED |
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Registered Office : |
96-2, Anna Salai, Nagal Keni Chromepet, Chennai – 600 044, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.07.1994 |
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Com. Reg. No.: |
18 – 28216 |
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CIN No.: [Company
Identification No.] |
U51109TN1994PLC028216 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES04512E |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Finished Leather Goods. |
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 318255 |
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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 having fine track.
Trade relations are fair. Business is active. General financial position is
satisfactory. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
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Name : |
Mr. Rahul |
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Designation : |
Accountant |
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Date : |
09.09.2008 |
LOCATIONS
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Registered Office / Factory : |
96-2, Anna Salai, Nagal Keni Chromepet, Chennai – 600 044, Tamilnadu,
India |
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Tel. No.: |
91-44-22367385/ 22363416 |
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Fax No.: |
91-44-22367385 |
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E-Mail : |
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Area : |
40000 Sq. ft. |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Arfin Ahmed |
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Designation : |
Director |
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Address : |
3003, Oakwood Apartments, Jakksandra Block, Bangalore – 560 034,
Karnataka, India |
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Date of Birth/Age : |
30 Years |
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Date of Appointment : |
29.11.2001 |
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Name : |
Mr. Sabia Jamal |
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Designation : |
Director |
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Address : |
2004, Oakwood Apartments, Jakksandra Block, Bangalore – 560 034,
Karnataka, India |
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Date of Birth/Age : |
35 Years |
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Date of Appointment : |
25.02.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 26.09.2003
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Names of Shareholders |
No. of Shares |
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Mr. Shahzad Ahmed |
1250 |
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Mr. Arfin Ahmed |
1440 |
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Mr. Jehad Ahmed |
2425 |
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Mrs. Aliya Ahmed |
2450 |
Equity share breakup
(Percentage of total equity)
As on 31.03.2007
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Sr. No. |
Category |
Percentage |
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1. |
Bodies corporate (not mentioned above) |
0.10 |
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2. |
Directors or relatives of directors |
87.40 |
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3. |
Other top fifty (50) shareholders (other than listed above) |
12.50 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Finished Leather Goods. |
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Products : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL
INFORMATION
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Customers : |
v Exporter v Manufacturer |
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No. of Employees : |
60 |
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Bankers : |
v ABN Amro Bank Hideous v Bank of Baroda 53-55, International Business Branch, Rajaji Salai, Chennai – 600 001,
Tamilnadu, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
V. Krishna Prasad and Company Chartered Accountants |
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Address : |
New No. 81, Old No. 38/1, 7th Avenue, Ashok Nagar, Chennai
– 600 083, Tamilnadu, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000 |
Equity shares |
Rs. 100/- each |
Rs. 1.000 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000 |
Equity shares |
Rs. 100/-
each |
Rs. 1.000
million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.000 |
1.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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62.651 |
60.457 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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63.651 |
61.457 |
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LOAN FUNDS |
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1] Secured Loans |
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1.043 |
2.584 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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1.043 |
2.584 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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64.694 |
64.041 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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13.661 |
17.231 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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8.322 |
13.022 |
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Sundry Debtors |
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32.057 |
27.047 |
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Cash & Bank Balances |
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2.600 |
2.794 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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35.603 |
41.286 |
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Total
Current Assets |
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78.582 |
84.149 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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27.516 |
37.304 |
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Provisions |
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0.035 |
0.035 |
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Total
Current Liabilities |
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27.551 |
37.339 |
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Net Current Assets |
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51.031 |
46.810 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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64.694 |
64.041 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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66.432 |
72.653 |
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Other Income |
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2.454 |
0.084 |
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Total Income |
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68.886 |
72.737 |
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Profit/(Loss) Before Tax |
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2.194 |
(0.106) |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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2.194 |
(0.106) |
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Expenditures : |
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Raw Material Consumed |
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23.560 |
21.789 |
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Consumption of stores and spares parts |
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19.740 |
24.134 |
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Increase/(Decrease) in Finished Goods |
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(0.449) |
6.298 |
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Salaries, Wages, Bonus, etc. |
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5.828 |
6.235 |
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Managerial Remuneration |
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0.120 |
0.120 |
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Payment to Auditors |
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0.030 |
0.035 |
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Interest |
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0.204 |
0.308 |
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Insurance Expenses |
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0.105 |
0.003 |
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Power & Fuel |
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3.947 |
4.074 |
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Depreciation & Amortization |
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2.273 |
2.758 |
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Other Expenditure |
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11.334 |
7.089 |
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Total Expenditure |
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66.692 |
72.843 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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3.18 |
(0.15) |
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Net Profit Margin (PBT/Sales) |
(%) |
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3.30 |
(0.15) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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3.18 |
(0.15) |
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Return on Investment (ROI) (PBT/Networth) |
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0.03 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.43 |
0.61 |
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Current Ratio (Current Asset/Current Liability) |
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2.85 |
2.25 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
Tata International
Shrinivas Shoes Private Limited
Form 8
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Name of the company |
SIERRA TRADING PRIVATE LIMITED |
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Presented By |
v Bank of Baroda 53-55, International
Business Branch, Rajaji Salai, Chennai – 600 001, Tamilnadu, India |
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1) Date and description of instrument creating the change |
02.04.2002 Hypothecation of machinery dated 02.04.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2.600 millions Together with interest, costs charges and other expenses which may be debited to the said account from time to time. Facility : Term Loan |
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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 |
Hypothecation of all movable machinery of the company, including machineries (Total valued Rs. 3.500 millions) morafully described in the list attached with the hypothecation of machinery viz; a) Hydraulic Automatic Ironing and plating machine for leather finishing (Rs. 1.677 millions) Import duty for the above Rs. 0.157 million b) One Automatic Rotary spraying machine with drying chambers and accessories Rs. 0.700 million 16% excise duty and 4% CST – Insurance – Rs. 0.035 million c) Solai Reversible settingout machine Rs. 0.290 million TNGST – Rs. 0.008 million d) One No. Thermax Boiler Rs. 0.276 million CST@3% - Rs. 0.011 million e) Clearing and Installation charges for above machines (approx Rs. 0.183 million) with all stocks and spare parts, both present and future belonging to the company being and lying in the company’s premises or godowns of or rented by the company or otherwise used in connection with the business of the company, as security for the due repayment of the loan by the company to the Bank by way of first charge. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the rate of 2% over TPLR with a minimum of 13.50% p.a. Margin : 25% minimum Term Loan of Rs. 2.600 millions is repayable in 48 consecutive monthly instalments as per the schedule here under: Rs. 0.050 million – 36 months Rs. 0.067 million – 11 months The last instalment of Rs. 0.067 million commencing 1 month after initial disbursement interest to be serviced as and when charged. All other terms and conditions as specified in the enclosed hypothecation of machinery. |
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5) Name and Address and description of the person entitled to the charge. |
v Bank of Baroda 53-55,
International Business Branch, Rajaji Salai, Chennai – 600 001, Tamilnadu,
India |
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. 44.89 |
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UK Pound |
1 |
Rs. 78.86 |
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Euro |
1 |
Rs. 63.33 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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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