MIRA INFORM REPORT

 

 

Report Date :

29.08.2012

 

IDENTIFICATION DETAILS

 

Name :

ALLIED TANNINS

 

 

Registered Office :

Flat 4,  11/23 Vepery High Road,  Periamet, Chennai – 600003, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Year of Establishment :

1982

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

IEC No.:

0488045398

 

 

CST No.:

787936/03/04/03

 

 

TIN No.:

33310422162

 

 

PAN No.:

[Permanent Account No.]

AAFPA6463L

 

 

Legal Form :

Sole Proprietory Concern

 

 

Line of Business :

Exporters of Finished Leather/ Footwear Components and Importers of Wattle Extract.

 

 

No. of Employees :

5 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established proprietory concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct.

 

The concern can be considered for 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. K O Arif Ahmed

Designation :

Proprietor

Contact No.:

91-9500023086

Date :

28.08.2012

 

 

LOCATIONS

 

Registered Office :

Flat 4,  11/23 Vepery High Road,  Periamet, Chennai – 600003, Tamilnadu, India

Tel. No.:

91-44-25612273/ 25615427/ 25610775

Mobile No.:

91-9500023086 (Mr. Arif Ahmed)

Fax No.:

91-44-25612273

E-Mail :

atseta2005@yahoo.com

alliedagencv3@qmail.com

 

 

SOLE PROPRIETOR

 

Name :

Mr. K O Arif Ahmed

Designation :

Proprietor

 

 

BUSINESS DETAILS

 

Line of Business :

Exporters of Finished Leather/ Footwear Components and Importers of Wattle Extract.

 

 

Exports :

 

Products :

·         Finished Leather

Countries :

·         Spain

·         Italy

·         Germany

·         Hong Kong

·         China

 

 

Imports :

 

Products :

·         Wattle Extract

Countries :

·         Brazil

 

 

Terms :

 

Selling :

L/C and Credit (30 days)

 

 

Purchasing :

L/C and Credit (30 days)

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers and End Users

 

 

No. of Employees :

5 (Approximately)

 

 

Bankers :

·         Punjab National Bank, Periamet, Chennai – 600003, Tamilnadu, India

·         Canara Bank, Periamet, Chennai – 600003, Tamilnadu, India

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

Not Available

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

Not Divulged

Total :

Not Divulged

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

50.000

 

 

 

 

 

 

The above information has been parted by Mr. K O Arif Ahmed

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last one year

Yes

12]

Profitability for last one year

No

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

No

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

PROFILE:

 

 

This is a proprietorship firm started in 1982 by Mr. K O Arif Ahmed. They are importers and exporters. They are also manufacturers of Wallets, handbags, gents pouch, ladies pouch, card holder, file folder, portfolio, passport holders, travel bags, cow lining, goat lining and all types of leather footwear components and finished leather mainly for footwear. Now as far as exports are concerned they export finished leather, footwear components, all types of wallets and bags. On the import side they are importers of Brazilian wattle extract and distributors to the whole of India.

 

Now, the head office is situated in the Mecca of the Tamilnadu Leather Industry - Periamet. About 5 people work here. Their building is next to the famous leather center - The Council for leather exports office - the Government body that oversees the export and import of leather in the country. Mr. Arif Ahmed is the main person who looks after exports. Mr. Pervez Ahmed his brother co-ordinates production.

 

First let us see their production and export activities. They do not have a factory of their own but get their job work done from Ambur and Vaniyambai.

 

Some of the job workers who work for Subject in Ambur:

 

1. Azhar Leathers 6, Periyavarikkam, Thuthipet Post. 635802. Ambur

     Tel. 91-44-41742450/ 40

 

2.         Jabeen Javeed and Comany

Venkatasamuthiram Road, Thuthipet. 635811. Ambur

 

3.         Shalimar Tanning Company

 

No 72, M C Road, M C Road, Ambur – 635802

 

The importance of Ambur as a tanning center

 

Ambur which is situated about 175 kms from Chennai, and is a well known center for leather. There are quite a large number of tanneries where E.I tanned goat and sheep skins, S/C and F/C finished leather etc is produced. Some of tanneries are very big and modern with all the necessary machinery and infrastructure where high class finished leathers meant for shoes, garments, bags are produced and exported or handed over to other exporters. Importers from different countries have close links with Ambur based tanners and exporters and do big contracts as goat and cow leathers are available in plenty here with international standards. This town has also made a name for its well equipped and well infra structured modern shoe factories where high standard world class foot wears are made and exported to many countries including the USA, UK, Italy, Germany, Portugal, Switzerland and Spain. Another centre famous for the leather industry is Vaniyambadi. Here again there are quite a large number of tanneries where items such as E.I. tanned goat and sheep skins, S/C and F/C finished leathers are made, locally supplied and exported. There are also innumerable job tanners here. It is the best place for dealing in sheep items. They can say that it is the leather tanning centre with the largest number of tanneries in Tamil Nadu. No other centre has as many tanneries as Vaniyambadi does. Vaniyambadi is just about 30 minutes drive from Ambur. While there are more tanneries in Vaniyambadi, there are more shoe units in Ambur which are supplying to the best shoe companies abroad. These two neighboring centers are playing an important role in the development of the leather industry in the country. Subject give the design and the raw materials that is wet blue skin to the tanners here and give the specifications for the job work. The raw materials are turned into finished leather suitable for foot wear components here.

 

 

Given below is a small introduction to how important Tamilnadu is to the leather industry of India.

 

Subject is a member of the AISHTMA.

 

The All India Skin and Hide Tanners and Merchants Association, "Leather Centre",

43/53, Raja Muthiah Road, Periamet, Chennai - 600003, Tamilnadu, India

Tel. No. 91-44-25610636/ 25615247

Fax No. 91-44-25615292

E-mail: aishtma@vsnl.com  

           assn@aishtma.com 

Website: http://www.aishtma.com

 

 

According to Aishtma Tamilnadu is in the forefront in leather with an annual production of more than 1.2 billion sq.ft. of finished leather. It is about 60% share in total finished leather production of their country and 45% share in total export from India. There are about 750 tanneries in Tamilnadu and the raw material processed per day is 500-1000 tons and annual turnover more that Rs.100000.000 Millions. The number of operations CETPs is 16 catering to 630 tanneries, the number of ETPs is 94 and there are more that 56 RO plants in Tamilnadu. No Tannery operates without access to any Effluent Treatment plant and 100% connectivity to pollution control devices is a specialty of Tamilnadu. There are 497 leather products units in Tamilnadu producing about 59 million pairs of full shoes, 27 million pairs of shoe uppers, 7.1 million pieces of leather garments and 29.5 million pieces of leather goods. The quality of various leathers being produced here is of high standard and comparable with that of any advanced country. Consequently the state of Tamilnadu once popular for E.I. Tanned hides and skins throughout the world particularly in countries like the USA, the UK, Italy, West Germany, France and Papen is now popular for leather and leather products in these and many other countries. While Chennai, Ambur, Vaniyambadi, Perrambut, Ranipet, Trichy, Erode and Dindigul are the main centers for leather, Chennai, Ambur and Ranipet are the major hub for leather products such as leather shoes, garments and goods. Their country has earned laurels as a good and reliable supplier of leather and leather products in the world market.

 

 

Now let us see their import activities - They are importers of Brazilian Wattle extract. They wattle extract is supplied to many tanners, leather manufacturers in South India. They import from the following companies:

 

TANAC S.A

Rue Torbjorn Weibull, 199

Post Code: 95780-000

Montenegro - RS - Brazil

Phone: +55 (51) 3632-4055

Fax: +55 (51) 3632-2863 / 3632-2499

 

 

TANAC Tannin Unit is situated in Montenegro, Rio Grande Do Sul. At this unit vegetable tannin extracts for the leather industry, flocculants / coagulants and auxiliaries of flocculation for drinking water treatment and of effluents, suspension agents, dispersants and fludificants for mud drilling and adhesives for the wood industry are produced. TANAC exports about 85% of its production which is 30000 tons annually to 70 countries distributed in 5 continents. In the same way that it conducts its forest management activities, also in the tannin production process,

 

   Seta S/A Extrativa Tanino De acacia

 

Estancia Velha - RS

 

Address: Av. 1° de Maio, 1109 Acesso Av. 7 de setembro Bairro das Rosas CEP: 93600-000

 

1941 - Tanneries added the acacia bark directly in the paddles with hides

 

1941 - November 14: Founding of "Sociedade Extrativa Tanino de Acacia Ltda. - SETA", first enterprise to extract the acacia tannin in America

 

1946 - May 16: Founding of the Taquari (RS) branch

 

1987 - June 30: Creation of SETA Quimica aimed at the development, production and commercialization of leather chemical specialties

 

1998 - Constitution of the joint-venture with Mitsubishi Corporation: MITA, which produces woodchips for the production of cellulose

 

1999 - March 18: Foundation of Acquaquimica Ltda., productive unit of tannin-based flocculants and clarifiers

 

1999 - June: Obtained the ISO 9001 Certification, under SETA's Quality Program

 

2001 - Agreement signed with the Universidad de Santa Maria to develop investigation projects in the production of the Black Wattle

 

2003 - SETA Quimica and Acquaquimica are certified with ISO 9001 version 2000 in, the production and commercialization of vegetable tannins and chemical specialties for the leather industry, and, respectively, in development, production and commercialization of tannin-based chemical specialties

 

2004 - Obtained the Forest Stewardship Council - FSC certification

 

2009 - Concentration of the tannin and chemical activities at the Estancia Velha plant

 

2011 - The company maintains the quality certificates and continues to grow with great respect of life and the environment

 

Seta is the company from which Subject import a very large quantity of wattle extract. The firm imports about 10000 tons annually from this company.

 

Turnover and other details:

 

The firm employs about 5 people at the office. Mr. Arif Ahmed looks after the administration and sales and his brother Mr. Pervez Ahmed looks after production and shipment all other production activities, tanning activities are outsourced to firms/ companies in Ambur. Their turnover is about Rs.50.000 Millions and their bankers are Punjab National bank and Canara Bank., Chennai - 600003, Tamilnadu, India

 

Though the firm has made a very good name is very reputed and old, there is no way to assess the financial strength of the firm correctly. Caution advised in all financial transactions with them. Orders may be placed against LCs or documents may be drawn thru bank.

 

A medium sized, old reputed firm.

 


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.55.78

UK Pound

1

Rs.88.04

Euro

1

Rs.69.62

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

-

 

 

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.