MIRA
INFORM REPORT
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Report Date : |
16.03.2011 |
IDENTIFICATION DETAILS
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Name : |
ARKAY LEATHERS PRIVATE LIMITED |
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Registered Office : |
No.91/ 4, 1st Floor, Anna Salai, Nagalkeni, Chromepet,
Chennai – 600 044, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
15.10.1991 |
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Com. Reg. No.: |
18-21542 |
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CIN No.: [Company
Identification No.] |
U18209TN1991PTC021542 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA01209F |
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PAN No.: [Permanent
Account No.] |
AAACA3053E |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, Exporter, Trader and Sourcing of Finished Leathers and Leather Garments. |
RATING & COMMENTS
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MIRA’s Rating : |
B (33) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 220000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. The company has
incurred some losses in the previous year but in the current year financial
position of the company has wipe off the losses. Trade relations are fair.
Business is active. Payments are reported to slow but correct. The company can be considered for small business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
No.91/ 4, 1st Floor, Anna Salai, Nagalkeni, Chromepet,
Chennai – 600 044, |
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Tel. No.: |
91-44-22414400-04 |
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Fax No.: |
91-44-22414405 |
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E-Mail : |
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Website : |
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Head/Corporate Office : |
3, Third Floor, Crown Court, 128, |
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Factory 1 : |
SIDCO Industrial Estate, Ranipet, North Arcot Dist. – 632 403, |
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Area : |
12000 sq. ft. |
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Location : |
Owned |
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Factory 2 : |
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Tel. No.: |
91-44-24750076/24750078 |
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Fax No.: |
91-44-24753770 |
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E-Mail : |
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Overseas Offices : |
Located at: |
DIRECTORS
As on 30.09.2010
|
Name |
Mr. R. Kumar |
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Designation |
Managing Director |
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Address |
Vandana, 35, |
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Date of Birth |
29.12.1953 |
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Date of Appointment : |
15.10.1991 |
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Name |
Mrs. Shuba Kumar |
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Designation |
Director |
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Address |
Vandana, 35, |
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Date of Birth |
20.01.1958 |
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Date of Appointment : |
15.10.1991 |
KEY EXECUTIVES
|
Name : |
Mr. T. Murugan |
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Designation : |
Company Secretary |
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Address : |
22-E, Sri Subah Colony, |
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Tel. No. : |
91-44-24847075 |
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Fax No. : |
91-9381035900 |
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E-mail : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
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Names of Shareholders |
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No. of Shares |
|
R. Kumar |
|
99450 |
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Shuba Kumar |
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37000 |
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Anant Kumar |
|
58500 |
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Varsha Kumar |
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50 |
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Total |
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195000 |
As on 30.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Directors
or relatives of directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter, Trader and Sourcing of Finished Leathers and Leather Garments. |
PRODUCTION STATUS (As on 31.03.2009)
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Particulars |
Unit |
Installed Capacity |
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Assorted Garments |
Nos. |
4,000 per month |
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Finished Leather |
Sq. fts. |
500,000 per month |
GENERAL INFORMATION
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No. of Employees : |
150 (approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Maninan and Narayanan Chartered Accountants |
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Address : |
New No.11, Old No.42, Sai Prasad, 12th Avenue, Ashok Nagar,
Chennai-600 083, Tamilnadu, India |
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Tel. No.: |
91-44-42024640/50/23711612/20 |
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Fax No.: |
91-44-43597580 |
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E-Mail : |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000 |
Equity Shares |
Rs.100/- each |
Rs.20.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
195000 |
Equity Shares |
Rs.100/- each |
Rs.19.500 Millions |
(Of the above, 40000 Equity Shares of Rs.100/-
each fully paid-up were allotted as fully paid-up Equity Shares for
consideration other than cash pursuant to the scheme of Amalgamation with the Proprietory
concern “Arkay Leathers” and 154460 Equity Shares of Rs.100/- each were issued
at part consideration for the loan taken from the Director Mr. R. Kumar)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
19.500 |
19.500 |
19.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
34.700 |
32.284 |
36.168 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
54.200 |
51.784 |
55.668 |
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LOAN FUNDS |
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1] Secured Loans |
171.450 |
88.289 |
90.324 |
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2] Unsecured Loans |
53.565 |
53.565 |
53.565 |
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TOTAL BORROWING |
225.015 |
141.854 |
143.889 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
279.215 |
193.638 |
199.557 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
86.463 |
96.083 |
100.728 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
4.078 |
4.079 |
3.139 |
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DEFERREX TAX ASSETS |
1.509 |
1.768 |
1.648 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
215.407
|
198.017
|
207.024 |
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Sundry Debtors |
91.980
|
9.100
|
19.200 |
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Cash & Bank Balances |
48.786
|
33.857
|
29.005 |
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Other Current Assets |
9.991
|
0.000
|
0.000 |
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Loans & Advances |
24.805
|
33.722
|
27.502 |
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Total
Current Assets |
390.969
|
274.696
|
282.731 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
191.335
|
174.861
|
166.974 |
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Other Current Liabilities |
7.250
|
15.753
|
11.791 |
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Provisions |
5.219
|
8.127
|
9.924 |
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Total
Current Liabilities |
203.804
|
182.988
|
188.689 |
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Net Current Assets |
187.165
|
91.708
|
94.042 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
279.215 |
193.638 |
199.557 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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|
482.371 |
601.829 |
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Other Income |
|
30.313 |
38.945 |
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TOTAL (A) |
462.294 |
512.684 |
640.774 |
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Less |
EXPENSES |
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Material Consumed |
|
336.413 |
466.206 |
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Manufacturing Overheads |
|
74.562 |
74.353 |
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Administrative Overheads |
|
33.124 |
34.863 |
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Selling & Distribution Overheads |
|
35.305 |
36.774 |
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Inventory Change |
|
7.048 |
(2.375) |
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TOTAL (B) |
458.962 |
486.452 |
609.821 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(Including |
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Financial |
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Less |
FINANCIAL
EXPENSES (D) |
Expenses |
21.038 |
17.094 |
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and |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
Depreciation) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
7.085 |
7.692 |
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PROFIT BEFORE
TAX (E-F) (G) |
3.333 |
(1.891) |
6.167 |
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Less |
TAX (H) |
0.917 |
0.440 |
2.632 |
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PROFIT AFTER TAX
(G-H) (I) |
2.416 |
(2.331) |
3.535 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
NA |
318.415 |
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Dividend from Subsidiaries |
NA |
0.000 |
2.230 |
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TOTAL EARNINGS |
NA |
318.415 |
398.938 |
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IMPORTS |
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Import of Raw Materials & Consumables |
NA |
104.330 |
112.123 |
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Capital Goods |
NA |
0.678 |
7.242 |
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TOTAL IMPORTS |
NA |
105.008 |
119.365 |
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Earnings Per Share
(Rs.) |
12.39 |
(11.95) |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.52
|
(0.45)
|
0.55 |
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Net Profit Margin (PBT/Sales) |
(%) |
NA
|
(0.39)
|
1.02 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.70
|
(0.51)
|
1.61 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
(0.04)
|
0.11 |
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Debt Equity Ratio (Total Liability/Networth) |
|
7.91
|
6.27
|
5.97 |
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Current Ratio (Current Asset/Current Liability) |
|
1.92
|
1.50
|
1.50 |
LOCAL AGENCY FURTHER INFORMATION
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90282394 |
|
Corporate
identity number of the company |
U18209TN1991PTC021542 |
|
Name of the
company |
ARKAY LEATHERS
PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
NO.91/ 4, 1st
Floor Anna Salai Nagalkeni, Chromepet, Chennai – 600 044, |
|
Type of charge |
Book Debts Movable Property Floating Charge Others (Whole of
stocks) |
|
Particular of
charge holder |
Canara Bank,
Overseas Branch, E-Mail: chn1826@canbank.co.in |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental Agreement
to Common Hypothecation agreement |
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Date of
instrument Creating the charge |
22/02/2008 |
|
Amount secured by
the charge |
Rs.234.805
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
As per the Document(Rate of interest is subject to change by the bank from
time to time) Terms of
Repayment: As per the document Margin: As per
the document Extent and
Operation of the charge: Exclusive First Charge. Others: Charge amount
of Rs.234.805 millions is comprising BELC (ST) - Rs.4.530 millions, BELC
(ST)-Rs.5.200 millions, LC -Rs.60.000 millions, FBE/FDB-Rs.90.000 millions,
BG-Rs.0.075 million, PC-Rs.75.000 millions. All other terms and conditions
are as per the document. |
|
Short particulars
of the property charged |
Whole of the
existing securities including those acquired and/or to be acquired out of the
enhanced credit limits more fully described in the agreement. This is in
addition to all other existing securities including landed properties. |
|
Date of latest
modification prior to the present modification |
21/02/2008 |
|
Particulars of
the present modification |
No change in the
charge amount of Rs.234.805 millions. But the existing credit limits of Rs.234.805
millions is further secured by the properties given above morefully described
in the agreement. All other terms and conditions of the original charge and
the subsequent modifications remain unchanged. |
FIXED ASSETS:
·
Plant and Machinery
·
Office and Other
Equipments
·
Land and Building
·
Vehicles
·
Tools and Dies
·
Furniture and Fixtures
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
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.45.27 |
|
|
1 |
Rs.72.95 |
|
Euro |
1 |
Rs.63.08 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
33 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.