MIRA
INFORM REPORT
|
Report Date : |
19.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
FINEWEAR LEATHERS PRIVATE LIMITED |
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Registered
Office : |
No.1, Iind Street, Patel Nagar, Mudichur Road, West Tambaram, Chennai –
600045, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
24.03.2004 |
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Com. Reg. No.: |
18-052802 |
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CIN No.: [Company Identification
No.] |
U19112TN2004PTC052802 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEF03253F |
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PAN No.: [Permanent Account No.] |
AAACF7912P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Exporter of Cow Leather, Goat Leather, Finished
Leather. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 70880 |
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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 an established company having satisfactory track. Trade
relations are fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business 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
|
Registered Office : |
No.1, Iind Street, Patel Nagar, Mudichur Road, West Tambaram, Chennai
– 600045, Tamilnadu, India |
|
Tel. No.: |
91-44-55677681 / 27409507 |
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Mobile No.: |
91-9003020106 (Mr. A. Kabilan) |
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Fax No.: |
91-44-27477191 |
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E-Mail : |
DIRECTORS
As on 23.09.2010
|
Name : |
Mr. Adhi Kabilan |
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Designation : |
Director |
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Address : |
NO.8, |
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Date of Birth/Age : |
17.05.1964 |
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Date of Appointment : |
24.03.2004 |
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DIN : |
00878225 |
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Name : |
Mr. Ramani Kabilan |
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Designation : |
Director |
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Address : |
NO.8, |
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Date of Birth/Age : |
25.05.1965 |
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Date of Appointment : |
24.03.2004 |
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DIN : |
02570309 |
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Name : |
Mr. Chandra Srinivasan |
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Designation : |
Director |
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Address : |
NO.8, |
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Date of Birth/Age : |
06.05.1934 |
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Date of Appointment : |
01.10.2004 |
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DIN : |
02570344 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 23.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Adhi Kabilan |
|
190160 |
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Mr. Ramani Kabilan |
|
53400 |
|
Mr. Chandra Srinivasan |
|
6000 |
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Total |
|
249560 |
As on 23.09.2010
|
Category |
Percentage |
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Directors or relatives of Directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Cow Leather, Goat Leather, Finished
Leather. |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
The Tamilnadu Industrial Investment Corporation Limited, SIDCO,
Thiru-VC-KA Industrial Estate, GUindy, Chennai – 600032, |
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Auditors : |
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Name : |
R Ravindher Chartered Accountant |
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Address : |
Flat No.7, Meenakshi Sundaram Apts., 33 Shivaji Street, T Nagar,
Chennai – 600017, Tamilnadu, India |
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PAN No.: |
AAEPR6300G |
CAPITAL STRUCTURE
As on 23.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
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|
600,000 |
Equity Shares |
Rs.10/-each |
Rs.6.000 million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
249,560 |
Equity Shares |
Rs.10/-each |
Rs.2.496 million |
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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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|
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1] Share Capital |
2.495 |
2.496 |
2.496 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
15.225 |
12.098 |
9.547 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
17.720 |
14.594 |
12.043 |
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LOAN FUNDS |
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1] Secured Loans |
44.835 |
43.809 |
46.777 |
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2] Unsecured Loans |
1.662 |
2.352 |
0.013 |
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TOTAL BORROWING |
46.497 |
46.161 |
46.790 |
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DEFERRED TAX LIABILITIES |
0.548 |
0.746 |
0.809 |
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TOTAL |
64.765 |
61.501 |
59.642 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
25.397 |
24.953 |
22.624 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
34.821
|
35.032 |
32.562 |
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Sundry Debtors |
21.066
|
21.506 |
18.499 |
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Cash & Bank Balances |
2.622
|
2.701 |
5.750 |
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Other Current Assets |
2.804
|
1.431 |
6.863 |
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Loans & Advances |
6.109
|
5.104 |
0.550 |
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Total
Current Assets |
67.422
|
65.774 |
64.224 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
26.406
|
28.409 |
26.382 |
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Other Current Liabilities |
0.140
|
0.90 |
0.078 |
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Provisions |
1.508
|
0.727 |
0.771 |
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Total
Current Liabilities |
28.054
|
29.226 |
27.231 |
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Net Current Assets |
39.368
|
36.548 |
36.993 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.025 |
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TOTAL |
64.765 |
61.501 |
59.642 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
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Other Income |
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TOTAL (A) |
120.337 |
122.423 |
101.613 |
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Less |
EXPENSES |
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Office Expenses |
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Administrative Expenses |
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Advertising Expenses |
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TOTAL (B) |
108.942 |
108.602 |
92.937 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11.395 |
13.821 |
8.676 |
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Less |
FINANCIAL
EXPENSES (D) |
5.986 |
8.303 |
4.273 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5.409 |
5.518 |
4.403 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3.387 |
3.452 |
2.594 |
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PROFIT BEFORE
TAX (E-F) (G) |
2.022 |
2.066 |
1.809 |
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Less |
TAX (I) |
0.625 |
0.909 |
0.739 |
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PROFIT AFTER TAX
(G-I) (J) |
1.397 |
1.157 |
1.070 |
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Earnings Per
Share (Rs.) |
5.60 |
-- |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.16
|
0.95 |
1.05 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.18
|
2.28 |
2.08 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.14 |
0.15 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.21
|
5.17 |
6.15 |
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Current Ratio (Current Asset/Current Liability) |
|
2.40
|
2.25 |
2.36 |
LOCAL AGENCY FURTHER INFORMATION
Note : Registered office address
of the company has been shifted from 8, Old No.12, Vaidvel St. West-Tambaram,
Chennai – 600045,
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10040908 |
|
Corporate
identity number of the company |
U19112TN2004PTC052802 |
|
Name of the
company |
FINEWEAR LEATHERS
PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
8, Old No.12, |
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Type of charge |
|
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Particular of
charge holder |
State Bank of Email : srinibank@rediff.com
|
|
Nature of
description of the instrument creating or modifying the charge |
Existing total
limit of 62.300 millions enhanced to 67.3 millions with a shuffle in various
facilities sanctioned. Fresh Documents executed as 1) Letter of Arrangement -
Cash Credit of Rs.20.000 millions, EPC of Rs.20.000 millions including sub limit
of FDBN Rs.20.000 millions. Term Loan I – 2.300 millions, Term Loan - II –
5.000 millions. Total of above fund based limits – 47.300 millions and Letter
of Credit – 20.000 millions. Total of above non fund based limits – 20.000
millions. Total of Fund and Non Fund based limits aggregating to Rs.67.300
millions. |
|
Date of
instrument Creating the charge |
07.03.2008 |
|
Amount secured by
the charge |
Rs.673.000
million |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
- 1) Working Capital - State Bank Advance Rate (SBAR) % with a minimum of
12.50% 2) EPC - 3% below
SBAR @ 9.50% Terms of
Repayment - Working Capital - Repayable on demand Margin - Fund
Based - 25 % Non Fund Based -
25 % Extent and
Operation of the charge - Security - Cash Credit / EPC - Hypothecation of
entire Current Assets of the Company - Collateral Security of Factory
Building measuring 29600 Sq.Ft. and Collateral Security of Factory Land. Letter of Credit
- Merchandise covered under LC |
|
Short particulars
of the property charged |
|
|
Date of latest
modification prior to the present modification |
NA |
|
Particulars of
the present modification |
Overall Credit
Limits enhanced from Rs.62.300 millions to Rs.67.300 millions. EPC sanctioned
Rs.20.000 millions including FDBN of Rs.20.000 millions. Term Loan III
originally sanctioned for Rs.250 Lakhs cancelled. LC limit of Rs. 10.000
millions enhanced to Rs. 20.000 millions. After the modification the
sanctioned credit limits stands as follows, Cash Credit Rs.20.000 millions,
EPC Rs.20.000 millions (EPC and FDBN), Term Loan I - Rs.2.300 millions, Term
Loan II - Rs.5.000 millions and LC Rs. 20.000 millions. Total - Rs.67.300
millions |
FIXED ASSETS :
- Furniture and
Fittings
- Intercom
- Telephone
- Overhead tank
- Pollution
Control Tank
- FAX Machine
- Scooter
- Hyundai Car
- Ambassador
Car
- TVS Two
Wheeler
- Bajaj Two
Wheelar
- TVS Excel
Super
- Plant and
Machinery
- Electrical
Installations
- Weighing Machine
- Air
Conditioner
- Computer
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.45.09 |
|
|
1 |
Rs.72.82 |
|
Euro |
1 |
Rs.63.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
45 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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.