MIRA INFORM REPORT

 

 

Report Date :

17.03.2011

 

IDENTIFICATION DETAILS

 

Name :

WORLDWIDE LEATHER EXPORTS LIMITED

 

 

Registered Office :

5F, Everest, 46/C, Chowringee Road, Kolkata – 700071, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

26.06.1990

 

 

Com. Reg. No.:

049313

 

 

CIN No.:

[Company Identification No.]

L70109WB1990PLC049313

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALW01338B

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturers and exporters of high quality men's leather shoes, having modern manufacturing plant

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 300000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

5F, Everest, 46/C, Chowringee Road, Kolkata – 700071, West Bengal, India

Tel. No.:

91- 33-22883786

Fax No.:

91-33-22883786

E-Mail :

isd@wleltd.com

Website :

http://www.wleltd.com

 

 

Head Office / Factory  :

38th Mile Stone NH 8, Behrampur Road, Gurgaon District – 122001, Haryana - India

 

 

DIRECTORS

 

Name :

Mr. Anil Agarwal

Designation :

Chairman and Managing director

 

 

Name :

B P Singh

Designation :

Director

 

 

Name :

Ms. Rakhee Agarwal

Designation :

Whole Time Director

 

 

Name :

Mr. Lalit Chhawchharia

Designation :

Director

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As On 31.12.2010

 

Names of Shareholders

 

No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1,250,809

42.11

Bodies Corporate

464,860

15.65

Any Others (Specify)

11,975

0.40

Directors of Promoters Companies

11,975

0.40

Sub Total

1,727,644

58.16

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

1,727,644

58.16

(B) Public Shareholding

 

 

(1) Institutions

 

 

(2) Non-Institutions

 

 

Bodies Corporate

115,221

3.88

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 1 lakh

929,656

31.30

Individual shareholders holding nominal share capital in excess of Rs. 1 lakh

99,381

3.35

Any Others (Specify)

98,398

3.31

Clearing Members

400

0.01

Non Resident Indians

69,682

2.35

Hindu Undivided Families

27,966

0.94

Foreign Corporate Bodies

350

0.01

Sub Total

1,242,656

41.84

Total Public shareholding (B)

1,242,656

41.84

Total (A)+(B)

2,970,300

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

2,970,300

-

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and exporters of high quality men's leather shoes, having modern manufacturing plant

 

 

GENERAL INFORMATION

 

Bankers :
  • Not available

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B. Chhawchharia and Company

Chartered Accountant

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

8000000

Equity Shares

Rs. 10/- each

Rs. 80.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2970300

Equity Shares

Rs. 10/- each

Rs. 29.703 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

29.700

29.700

29.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

47.000

46.300

42.900

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

76.700

76.000

72.600

LOAN FUNDS

 

 

 

1] Secured Loans

3.400

9.600

26.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

3.400

9.600

26.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

80.100

85.600

98.600

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

34.400

34.900

37.000

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

2.900

0.900

1.200

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
6.700

9.300

15.700

 

Sundry Debtors
15.300

16.600

22.300

 

Cash & Bank Balances
20.500

25.600

23.300

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
21.000

20.300

18.200

Total Current Assets
63.500

71.800

79.500

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

 

 

 

Other Current Liabilities
13.700

15.600

15.200

 

Provisions
6.900

6.500

3.900

Total Current Liabilities
20.600

22.100

19.100

Net Current Assets
42.900

49.700

60.400

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

80.100

85.600

98.600

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

99.000

130.000

124.300

 

 

Other Income

1.100

0.600

5.200

 

 

TOTAL                                     (A)

100.100

130.600

129.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw materials

54.400

71.300

74.000

 

 

Power and fuel cost

1.700

1.700

2.500

 

 

Employee cost

11.600

11.000

9.700

 

 

Other manufacturing expenses

0.000

14.400

12.000

 

 

Miscellaneous expenses

26.700

19.500

21.500

 

 

Increase/Decrease in stock

1.700

4.100

0.000

 

 

TOTAL                                     (B)

96.100

122.000

119.700

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

4.000

8.600

9.800

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

0.400

1.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

4.000

8.200

8.800

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3.000

3.000

3.400

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1.000

5.200

5.400

 

 

 

 

 

Less

TAX                                                                  (I)

0.300

2.200

2.100

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

0.700

3.000

3.300

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.25

1.02

1.07

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

11.230

35.230

14.940

Total Expenditure

11.310

31.290

16.030

PBIDT (Excl OI)

(0.080)

3.940

(1.090)

Other Income

0.040

0.750

0.830

Operating Profit

(0.040)

4.690

(0.260)

Interest

0.000

0.270

0.120

PBDT

(0.040)

4.420

(0.380)

Depreciation

0.720

0.720

0.720

Profit Before Tax

(0.760)

3.700

(1.100)

Tax

0.000

0.590

(0.180)

Profit After Tax

(0.760)

3.110

(0.920)

Net Profit

(0.760)

3.110

(0.920)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
0.70

2.30

4.17

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.01

2.31

2.74

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.02

4.87

4.64

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.01

0.07

0.07

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.31

0.42

0.62

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.08

3.25

4.16

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

The company was incorporated as a Private Limited Company on 26.06.1990 with the Registrar of Companies, West Bengal, in the name of Ashiana Buildtech (India) Private Limited and was later on converted into a Public Limited company with effect from 15.01.1992. The name of the company was subsequently changed to Ashiana Intercontinental Limited and a fresh Certificate of incorporation was obtained from the Registrar of Companies, West Bengal on 28.01.1992. The name of the company has been now changed to Worldwide Leather Exports Limited w.e.f. 30.08.1993 to represent its nature of business by its name. The company is promoted by Sarvashri Om Prakash Gupta, Anil Kumar Agarwal, Anil Agarwal and Raj Kumar Modi.

 

The company has tied up for technical knowhow with M/s International Shoe Machine Corporation (G.B) Limited. The company exports its entire production to highly quality conscious countries like USA, UK, France and Sweden. The company has recently incorporated a wholly owned subsidiary in the name and style of 'Zebra Leather Inc.' in New Jersey, USA to market company's product in the state of US and other European market under its own brand name 'Zebra'. The said company has already started marketing activities.

 

 

PERFORMANCE

 

Sales inclusive of export incentives have decreased over the previous year. The financial year 2009-10 shows a profit of Rs.0.740 millions after providing Rs. 2.964 millions towards depreciation.

 

The Company’s performance could not improve due to the rolling effect of the global melt down which hit the Company’s business during this financial year. Efforts to secure orders continues by taking active participation in the most popular Riva Del Garda, Italy fair. Though the Companys portfolio of Footwear from the R and D aspect is being appreciated in the international market, orders have shrunk due to acute competition in the international market especially in view of the forex rate conditions prevailing overseas.

 

 

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.45.18

UK Pound

1

Rs.72.59

Euro

1

Rs.63.13

 

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

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.