MIRA
INFORM REPORT
|
Report Date : |
11.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
CREW B.O.S. PRODUCTS LIMITED |
|
|
|
|
Registered
Office : |
624, Jaina Tower-1, District Centre Janakpuri, New Delhi-110058 |
|
|
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|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
30.12.1988 |
|
|
|
|
Com. Reg. No.: |
55-034472 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 128.932 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51909DL1988PLC034472 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELC07477B DELC06492D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC3222F |
|
|
|
|
Legal Form : |
Public limited liability company. The company shares are listed to the
Stock Exchange. |
|
|
|
|
Line of Business
: |
The company is engaged in fashion accessories products, footwear and
finished leather business. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6400000 |
|
|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
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Comments : |
Subject is well established company having satisfactory track record. Trade
relations are reported to be fair. Business is active. Payments are reported
to be regular and as per commitments. The company can be considered normal 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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 : |
624, Jaina Tower-1, District Centre Janakpuri, New Delhi-110058, India
|
|
Tel. No.: |
91-11-45530149 |
|
Fax No.: |
91-11-45530148 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
199, Udyog
Vihar, Phase - 1, Gurgaon – 122016, Haryana, India |
|
Tel. No.: |
91-124-4139400 / 4139440 / 4139411 |
|
Fax No.: |
91-124- 4005011 |
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|
|
|
Factory 1 : |
199, Udyog
Vihar, Phase-I, Gurgaon-122001, Haryana, India |
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|
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|
Factory 2 : |
172, Udyog
Vihar, Phase-1, Gurgaon-122001, Haryana, India |
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|
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|
Factory 3 : |
Plot No. 8 and
9, Sector -7, IMT, Manesar, Gurgaon, Haryana, India |
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|
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Factory 4 : |
Plot No. 37,
Sector-4, IMT, Manesar, Gurgaon, Haryana, India |
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Factory 5 : |
Plot No. 153,
Sector- 4, IMT, Manesar Gurgaon, Haryana, India |
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Factory 6 : |
Plot No 12,
Sector- 4, IMT, Manesar Gurgaon, Haryana, India |
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Factory 7 : |
140, Leather
Complex, Jalandhar, Punjab, India |
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Factory 8 : |
71/3B and 70/2,
Manthangal Village, Walaja Taluk, Vellore District, Tamilnadu, India |
|
|
|
|
Factory 9 : |
Plot No.SPL-190,
Industrial Area Neemrana, District Alwar Rajasthan, India |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Tarun Oberoi |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr. Robin
Bartholomew |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Deepak
Manchanda |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Mr. Gautam Nair |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Mr. Jitindar Bir
Singh |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Naveen Ganzu |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Tarun Joshi |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjeev Sehgal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Sanjay Kumar Babu |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|||||||||
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|||||||||
|
|
|
|
|||||||||
|
Individuals / Hindu Undivided Family |
2,461,240 |
18.06 |
|||||||||
|
Bodies Corporate |
2,339,080 |
17.16 |
|||||||||
|
Sub Total |
4,800,320 |
35.22 |
|||||||||
|
|
|
|
|||||||||
|
Total shareholding of Promoter and Promoter Group (A) |
4,800,320 |
35.22 |
|||||||||
|
|
|
|
|||||||||
|
(1) Institutions |
|
|
|||||||||
|
|
559,145 |
4.1 |
|||||||||
|
Sub Total |
559,145 |
4.1 |
|||||||||
|
(2) Non-Institutions |
|
|
|||||||||
|
Bodies Corporate |
1,740,553 |
12.77 |
|||||||||
|
|
|
|
|||||||||
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
3,529,581 |
25.9 |
|||||||||
|
|
2,307,244 |
16.93 |
|||||||||
|
Any Others (Specify) |
693,000 |
5.08 |
|||||||||
|
Non Resident Indians |
691,000 |
5.07 |
|||||||||
|
|
2,000 |
0.01 |
|||||||||
|
Sub Total |
8,270,378 |
60.68 |
|||||||||
|
Total Public shareholding (B) |
8,829,523 |
64.78 |
|||||||||
|
Total (A)+(B) |
13,629,843 |
100 |
|||||||||
|
|
- |
- |
|||||||||
|
(1) Promoter and Promoter Group |
- |
- |
|||||||||
|
|
363,624 |
- |
|||||||||
|
Sub Total |
363,624 |
- |
|||||||||
|
Total (A)+(B)+(C) |
13,993,467 |
- |
|||||||||
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in fashion accessories products, footwear and
finished leather business. |
||||||||
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|
||||||||
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Actual
Production |
|
Fashion Accessories |
Nos. |
7000000 |
3993152 |
|
Footwear |
Paris |
3000000 |
1482293 |
|
Finished Leather |
Sq. Ft. |
14800000 |
4192175 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||||||||||||
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||||||||||||||||||||||||||||||||||||||||||
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Bankers : |
·
Citi Bank N.A. ·
Canara Bank ·
Allahabad Bank ·
Standard Chartered Bank ·
IDBI Bank ·
Bank of Baroda ·
State Bank of India ·
ICICI Bank ·
Bank of India |
||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Anil K. Goyal and Associates Chartered Accountant |
|
Address : |
204-206,
Siddharth Chambers, Hauz Khas, New Delhi – 110016, India |
|
|
|
|
Name : |
Arora and Choudhary Associates Chartered Accountant |
|
Address : |
8/28, W.E.A. Abdul
Aziz Road, Karol Bagh, New Delhi -110005, India |
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|
|
|
Wholly Owned Subsidiary : |
·
Vogue Home Products Limited ·
Crew B.O.S Far East Limited ·
Crew ROR Products Limited |
|
|
|
|
Joint Ventures : |
·
Centre of Excellence in Design Limited |
|
|
|
|
Group of Employees : |
·
The Crew BOS C.G.H.S. Limited ·
Crew BOS Society |
|
|
|
|
Subsidiaries : |
·
Crew MAG Exports Limited ·
Crew BOS Enterprises Limited ·
Emporio BOS Design Limited ·
Villa BOS Leather Limited |
|
|
|
|
Associates : |
·
Fable Concept and Technology Private Limited ·
Elan Trade Post Private Limited ·
Crew Republica Retail Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29000000 |
Equity Shares |
Rs.10/- each |
Rs. 290.000 Millions |
|
1000000 |
Preference Shares |
Rs.10/- each |
Rs. 10.000 Millions |
|
|
TOTAL |
|
Rs. 300.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12893200 |
Equity Shares |
Rs.10/- each |
Rs. 128.932
Millions |
|
|
|
|
|
AS ON 19.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29000000 |
Equity Shares |
Rs.10/- each |
Rs. 290.000 Millions |
|
1000000 |
Preference Shares |
Rs.10/- each |
Rs. 10.000 Millions |
|
|
TOTAL |
|
Rs. 300.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13993467 |
Equity Shares |
Rs.10/- each |
Rs. 139.935
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
128.932 |
128.182 |
128.182 |
|
|
2] Share Application Money |
24.221 |
25.165 |
0.000 |
|
|
3] Reserves & Surplus |
1452.252 |
1224.943 |
1039.249 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1605.405 |
1378.290 |
1167.431 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2769.070 |
2055.572 |
1604.154 |
|
|
2] Unsecured Loans |
105.166 |
120.929 |
43.498 |
|
|
TOTAL BORROWING |
2874.236 |
2176.501 |
1647.652 |
|
|
DEFERRED TAX LIABILITIES |
33.982 |
29.206 |
37.207 |
|
|
|
|
|
|
|
|
TOTAL |
4513.623 |
3583.997 |
2852.290 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1438.909 |
1419.714 |
1314.449 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
31.448 |
25.783 |
20.783 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1791.998
|
1554.133 |
1318.439 |
|
|
Sundry Debtors |
3431.885
|
1404.578 |
878.285 |
|
|
Cash & Bank Balances |
86.097
|
150.924 |
49.023 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
502.159
|
329.621 |
198.590 |
|
Total
Current Assets |
5812.139
|
3439.256 |
2444.337 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2347.286
|
1026.232 |
716.698 |
|
|
Other Current Liabilities |
180.606
|
109.701 |
136.911 |
|
|
Provisions |
240.981
|
165.981 |
75.981 |
|
Total
Current Liabilities |
2768.873
|
1301.914 |
929.590 |
|
|
Net Current Assets |
3043.266
|
2137.342 |
1514.747 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
1.158 |
2.311 |
|
|
|
|
|
|
|
|
TOTAL |
4513.623 |
3583.997 |
2852.290 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6210.054 |
4443.195 |
3343.632 |
|
|
|
Other Income |
4.224 |
22.148 |
2.469 |
|
|
|
Income from
fortieture of Share Warrants |
0.000 |
0.000 |
29.850 |
|
|
|
TOTAL (A) |
6214.278 |
4465.343 |
3375.951 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material
Manufacturing & Others |
4624.189 |
3325.813 |
2449.930 |
|
|
|
Personnel,
Administration & Selling |
849.007 |
669.402 |
582.188 |
|
|
|
Increase /
(Decrease) in Stocks |
(48.197) |
(163.545) |
(95.114) |
|
|
|
TOTAL (B) |
5424.999 |
3831.670 |
2937.004 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
789.279 |
633.673 |
438.947 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
387.350 |
254.167 |
187.157 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
401.929 |
379.506 |
251.790 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
95.731 |
109.863 |
80.675 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
306.198 |
269.643 |
171.115 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
79.775 |
82.000 |
57.500 |
|
|
|
|
|
|
|
|
|
|
Adjustments of prior
years |
(2.138) |
(1.949) |
(0.072) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
224.285 |
185.694 |
113.543 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
882.509 |
696.815 |
583.272 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1106.794 |
882.509 |
696.815 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4245.155 |
3125.007 |
2080.549 |
|
|
TOTAL EARNINGS |
4245.155 |
3125.007 |
2080.549 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.40 |
14.49 |
8.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1127.530 |
1223.420 |
879.600 |
1089.850 |
|
Total Expenditure |
944.780 |
1113.510 |
728.820 |
936.610 |
|
PBIDT (Excl OI) |
182.750 |
109.910 |
150.780 |
153.240 |
|
Other Income |
0.890 |
11.020 |
0.950 |
2.670 |
|
Operating Profit |
183.640 |
120.930 |
151.730 |
155.910 |
|
Interest |
91.870 |
116.670 |
112.950 |
126.640 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
91.770 |
4.260 |
38.780 |
29.270 |
|
Depreciation |
24.830 |
22.800 |
26.820 |
24.810 |
|
Profit Before Tax |
66.940 |
(18.540) |
11.970 |
4.460 |
|
Tax |
17.500 |
(11.000) |
3.500 |
2.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
49.440 |
(7.550) |
8.470 |
1.670 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
49.440 |
(7.550) |
8.470 |
1.670 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.61
|
4.16 |
3.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.93
|
6.07 |
5.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.22
|
5.55 |
4.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.20 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.54
|
2.54 |
2.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.10
|
2.64 |
2.63 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions 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 |
No |
|
9. Name of person contacted |
No |
|
10. Designation of contact person |
No |
|
11. Turnover of firm for last three years |
Yes |
|
12. Profitability for last three years |
Yes |
|
13. Reasons for variation <> 20% |
------ |
|
14. Estimation for coming financial year |
No |
|
15. Capital in the business |
Yes |
|
16. Details of sister concerns |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
No |
|
19. Payments terms |
No |
|
20. Export / Import details |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
Yes |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
Yes |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
No |
PERFORMANCE REVIEW
The company is engaged
in fashion accessories products, footwear and finished leather business. The
Company is growing on consistent basis and has healthy plans for its expansion.
The income from operations increased to Rs. 6307.602 Millions from Rs. 4592.862
Millions in the previous year yielding a growth of 37.34%. The operating profit
for the year increased to Rs 789.279 Millions from 633.673 Millions registering
a growth of 24.56%.The net profit increased to Rs. 224.285 Millions from
185.694 Millions registering a growth of 20.78 %. The Company expects to keep
up the healthy trend in the financial year 2011-12 on the basis of diversified
product range and growing strategies adopted.
SUBSIDIARY
COMPANIES
CENTRE OF EXCELLENCE IN DESIGN LIMITED
Centre of Excellence
in Design Limited is a joint venture between the Crew B.O.S. Products Limited
and Matrix Clothing Private Limited. The object of the Company is to carry on
the business of creative and stylish designing of lifestyle products,
retailing, processing, assembling and crafting all type of apparel and wearing
apparels made from all type of leather and non leather materials.
VOGUE HOME PRODUCTS LIMITED
Vogue Home
Products Limited, wholly owned subsidiary of Crew B.O.S. Products Limited is
engaged in manufacture and export of home furnishing and small leather goods.
CREW MAG EXPORTS LIMITED
Crew MAG Exports
Limited. is a subsidiary of Crew B.O.S. Products Limited and it is engaged in
the manufacturing of leather footwear.
CREW B.O.S. ENTERPRISES LIMITED
This is a wholly
owned subsidiary of Crew B.O.S. Products Limited, carrying on the business of
creative and stylish designing of lifestyle products, wearing apparels made of
leather or non leather, consumer products, cosmetics, artificial furniture, beauty
products and designer goods and furnishing.
EMPORIO B.O.S. DESIGN LIMITED
A wholly owned
subsidiary of Crew B.O.S. Products Limited, with the main objects of carrying
on the business of creative and stylish designing of lifestyle products,
wearing apparels made of leather or non leather, consumer products, cosmetics,
artificial furniture, beauty products and designer goods and furnishing.
CREW ROR PRODUCTS LIMITED
A wholly owned
subsidiary of Crew B.O.S. Products Limited with the main objects of carrying on
the business of manufacturing and trading including import and export of all
kinds of fashion accessories made from leather, wood, metal, poly-urythene and
fabrics including leather bags, portfolios, travel bags, shoes, wallets,
leather garments and belts of all kinds, wearing apparel of leather and fabric,
garments, textile, furniture.
CREW REPUBLICA RETAIL LIMITED
Incorporated on
19th February, 2010 with the main objects to establish/manage/carry retail
business or trade in India through retail outlets showrooms for retailing in
house manufactured leather goods and apparels as well as manufactured by other
popular brands.
CREW P.P.O LEATHERS LIMITED
Incorporated on
10th February, 2011, as a wholly owned subsidiary with the main objects to carry
on the manufacturing of leather products and accessories
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
Leather industry
occupies a predominant place in India, being the second largest producer next
to China. The industry is equipped with a potential for employment generation,
growth and exports. The industry experienced a positive metamorphosis from
being a mere transporter of raw materials to an established exporter of value
added and finished leather products. Currently it is on an ever increasing
phase with optimum utilization of available raw materials and maximum returns
from exports. Leather industry in India is facing a shift of focus away from
the domestic market due to globalization, which has opened up leather sector to
foreign capital leading towards a complete transformation of the production
chain in the industry. The control of the value chain is exercised by the
international buyers and that even the largest firms in the Indian industry
have little independence with respect to design and specification of the
products being produced. The informal labour processes are augmented by the
employment based on caste and segregated by gender.
SYNOPSIS OF THE
INDUSTRY
The leather industry
occupies an important place in the Indian economy in view of its huge potential
for employment, growth and exports. Endowed with the largest cattle population
in any country of the world and cheap and abundant manpower both skilled and
unskilled, India is well-equipped to have a distinctive advantage in the
production of leather and leather goods.
The leather
industry is spread across different segments, namely, tanning and finishing,
footwear and footwear components, leather garments, leather goods including
saddler and harness, etc. The product variation covers semi and finished
leather, footwear and footwear components, garments for ladies and gents,
handbags for ladies and gents, wallets, diaries and cardholders, gloves and
fashion accessories, tableware, upholstery (for houses, offices and vehicles),
and luggage and portfolio bags.
The global trade
in leather and leather products has been increasing over the years. Although
the exports of Indian leather and leather products have grown manifold during
the past decades, their country's share in global trade is around 3% among
world imports of leather products. Whereas India's share in world imports of
leather footwear is 1%. Major exporting countries of leather footwear are China
(14% share), Portugal (6% share), Brazil (5% share) and Indonesia (4% share).
India's share in
world imports of leather goods is 7%. Major exporting countries are China (22%
share), Italy (22 % share), France (7% share) and Greece (5% share),
India's share in
world imports of harness and saddlery is 8%. Major exporting countries of
harness and saddlery are Germany (14 % share), U.K. (14 % share), China (12%
share).
Overall, India is
facing fierce competition in international market from countries like China,
Vietnam, Thailand, Indonesia, etc., which are emerging as major manufacturing
countries.
East European
countries like Poland, Romania, Czech and Slovak Republics have re-emerged as
major production centres particularly for footwear sector. These countries pose
major challenge to Indian exporters as they enjoy geographical advantage.
To augment the
footwear sector, Indian Government has come up with numerous initiatives.
Footwear sector is now de-licensed and de-reserved, providing expansion of
capacities on modern lines with state-of-the-art machinery. Government has also
permitted 100% Foreign Direct Investment through the automatic route for the
footwear sector.
PROSPECTS
FOREFRONT
The leather sector
offers a good potential which Indian entrepreneurs can exploit in European
Union and other markets characterized by ever growing competitiveness in terms
of price and quality, on one hand, and the environmental considerations, on the
other. With a strong foothold that the Indian leather industry has had for long
in these markets, and its advantage of raw material and labour resources,
Indian leather exporters can mount a concerted marketing campaign to wrest a
share consistent with their inherent strength and potential. This has to be
done against the background of the well-known salient features of these
markets:
• The world's
second largest import and export market
• A difficult
buyers' market with hyper competition and high expectations
• A dynamic multi-faceted
market with rapid technological development and innovations A market where a
considerable amount of buying power is devoted to satisfying individual needs
• A market
influenced by the rising average age of the population and low birth rate
• A market where
environment awareness and eco-friendly production becomes more and more a
pre-requisite for successful marketing of products
The emerging trend
in these markets has been towards direct imports. The other noteworthy feature
is the integration of retailing and manufacturing, particularly for the
footwear sector. This has led to increased emphasis on distribution aspects of
business. Other distributors, like departmental stores, mail order houses,
super markets and non-leather shops have also gained importance. Many outlets
get direct supplies either from the manufacturers and importers or from
wholesalers and buying associations.
These developments
necessitate the marketing strategies to be attuned to the specifics of the
different channels, keeping in sharp focus the changes taking place in the
distribution pattern of chain stores, retailers, discounters, etc.
The strategy
should focus on a structural approach to the promotion of export of leather
products from India. This must include market information for exploring new
markets, participation in different international trade fairs, organizing trade
delegations, organizing buyer-seller meets, liaisoning with the representatives
of the buying houses, etc.
FIXED ASSETS
·
Land
·
Building
·
Computer
·
Electrical Fittings
·
Furniture and Fixtures
·
Plant and Machinery
·
Vehicles
·
Computer Software
·
Technical Recipes and
Formulae
STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED MARCH 31,
2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.03.2012 (Audited) |
31.12.2011 (Unaudited) |
31.03.2012 (Audited) |
|
1. |
Net Sales/Income
from Operations |
1089.850 |
879.601 |
4320.404 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of material consumed |
555.677 |
283.648 |
1689.967 |
|
|
Purchase of Traded Goods |
220.314 |
222.946 |
1066.282 |
|
|
(Increase) / Decrease in Stock in Trade |
(15.004) |
9.641 |
135.337 |
|
|
Employees Cost |
135.803 |
87.509 |
401.233 |
|
|
Depreciation |
24.805 |
26.821 |
99.249 |
|
|
Other Expenditure |
39.816 |
125.067 |
430.893 |
|
|
Total |
961.411 |
755.632 |
3822.961 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
128.439 |
123.969 |
497.443 |
|
|
|
|
|
|
|
4. |
Other Income |
2.669 |
0.947 |
5.140 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
131.108 |
124.916 |
502.583 |
|
|
|
|
|
|
|
6. |
Interest |
126.635 |
112.949 |
448.128 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
4.473 |
11.967 |
54.455 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
4.473 |
11.967 |
54.455 |
|
|
|
|
|
|
|
10. |
Tax Expense |
2.800 |
3.500 |
12.800 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
1.673 |
8.467 |
41.655 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
1.673 |
8.467 |
41.655 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
139.935 |
139.935 |
139.935 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
0.12 |
0.61 |
2.98 |
|
|
b) Basic and diluted EPS after extraordinary items |
0.12 |
0.61 |
2.98 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
9193147 |
9193147 |
9193147 |
|
|
- Percentage of Shareholding |
65.70% |
65.70% |
65.70% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
3183797 |
3183797 |
3183797 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
66.32% |
66.32% |
66.32% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
22.75% |
22.75% |
22.75% |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
1616523 |
1616523 |
1616523 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
33.68% |
33.68% |
33.68% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
11.55% |
11.55% |
11.55% |
STATEMENT OF
ASSETS AND LIABILITIES AS ON 31.03.2012
|
EQUITY AND LIABILITIES |
31.03.2012 [Rs. In
Millions] |
|
|
Audited |
|
SHAREHOLDERS
FUNDS |
|
|
1] Share Capital |
139.935 |
|
2] Reserves & Surplus |
1548.533 |
|
Sub Total Shareholder’s
Funds |
1688.468 |
|
|
|
|
SHARE
APPLICATION MONEY PENDING ALLOTTMENTS |
|
|
NON-CURRENT LIABILITIES |
|
|
1] Long-tem borrowings |
278.692 |
|
2] Deferred Tax Liabilities (net) |
26.282 |
|
Sub Total Non
Current Liabilities |
304.973 |
|
|
|
|
CURRENT
LIABILITIES |
|
|
1] Short Term Borrowings |
2593.640 |
|
2] Trade Payables |
3025.838 |
|
3] Other Current Liabilities |
190.977 |
|
4] Short Term Provisions |
261.481 |
|
Sub Total
Current Liabilities |
6071.936 |
|
TOTAL EQUITY AND
LIABILITIES |
8065.377 |
|
|
|
|
ASSETS |
|
|
NON CURRECNT
ASSETS |
|
|
1] Fixed Assets |
1420.284 |
|
2] Goodwill on Consolidation |
-- |
|
3] Non-current Investments |
182.410 |
|
4] Deferred Tax Assets (net) |
-- |
|
5] Long Term Loans and Advances |
25.371 |
|
6] Other Non Current Assets |
-- |
|
Sub Total Non Current Assets |
1628.064 |
|
|
|
|
CURRENT ASSETS |
|
|
1] Current Investments |
--
|
|
2] Inventories |
1794.407
|
|
3] Trade Receivables |
3968.437
|
|
4] Cash and cash equivalents |
58.814
|
|
5] Shot Tem Loans and Advances |
615.654 |
|
6] Other Current Assets |
-- |
|
Sub Total Current Assets |
6437.313 |
|
TOTAL
ASSETS |
8065.377 |
NOTE:
1. The above results for the quarter / year ended March 31st,
2012 have been reviewed by the Audit Committee and taken on record by the Board
of Directors at their Meeting held on May 29th, 2012.
2. The previous period’s figures have been regrouped / rearranged wherever
necessary to make them comparable with the current period’s figures.
3. Provision for Income Tax Rs. 20.500 Million has been made during the
year.
4. The results of the Company are prepared in accordance with the Accounting
Standards issued by the Institute of Chartered Accountants of India (ICAI).
5. Income from operation includes Domestic Sales of Rs. 1110.335 Millions
(previous year Rs. 1726.380 Millions) and International Merchant Trading of Rs.
1147.546 Millions (previous year Rs. 1774.576 Millions)
6. Income from operations includes domestic sales of Rs. 106.430 Millions
(previous year Rs. 216.946 Millions) and export sales of Rs. 172.085 Millions
(previous year Nil) made to its subsidiaries / associate companies
7. Investor complaints received and pending for redressal at the beginning,
during and end of the quarter are NIL.
8. The company has made no provision for write off the loans and investments
made in non functional subsidiary and joint venture companies namely Crew MAG
Exports Limited Rs. 146.044 Millions, Crew ROR Products Limited Rs. 65.931
Millions and Centre of Excellence in Design Limited Rs. 30.485 Millions.
9. The Company has a disputed Income Tax demand of Rs. 3.101 Millions for
assessment year 2005-2006 and Rs. 5.014 Millions relating to financial year
2006-07 which have not been provided for being contested in appeal. However the
Company has already paid the above demand.
10. With regards to furnishing the information in respect to minority
interest as per section 41 of the listing agreements the same has been compiled
with.
11. The Company has sent letters to vendors to identify their status of
registration as Micro, Small and Medium Enterprises Development Act, 2006. The
Company has received replay from few vendors and has provided interest of Rs.
1.057 Millions and delayed payment to them.
12. As per the scheme of share holders issued earlier, some of the warrant
holders did not subscribe within the statutory period and therefore the Company
forfeited the subscription paid by them amounting to Rs. 10.377 Millions which
is shown under “Extra-ordinary Item”.
13. Other expenses includes Rs. 29.880 Millions (Previous year Rs. 30.179
Millions) being loss from Forward booking / Derivative transactions for the
year.
14. a) The Company continues to do international merchant trade in Dubai. Now
with the opening of WOS in Mauritius this trading stands shifted to Mauritius.
Thereafter during the year goods were returned back and resold to different
vendors out of which Company is yet to collect Rs. 2277.190 Millions against such
sales. Till the date of results Rs. 341.700 Millions has been recovered and
balances Rs. 1935.490 Millions is yet to be recovered. RBI compliances if
applicable as regard resale of such material are pending.
b) During the year
the Company has shifted the business of International Merchant Trading to its
wholly owned subsidiary i.biz. Trade Post, Mauritius, the total sales effected
through the subsidiary amounting to Rs. 1553.788 Millions (USD 30.99 Million).
The Company has given corporate guarantee of USD 25 million for bank facility
availed by the subsidiary.
c) No provision
has been made in respect of overdue debts related to International Trading and
Domestic Trading Management has confirmed this to be good and realizable.
15. The various debit and credit balances are subject to confirmation. The
company has sent letter to certain parties for confirmation of statement of
account / balances for the year. The Company has not received confirmed
statement / balance confirmation from those parties except in few cases, in
case of variance upon reconciliation this may affect the profitability.
16. The physical stock at the yearend has been taken and valued as certified
by Management.
17. There was a Tax Survey on the company on April 12th, 2010. The
proceeding are on and final report of Survey team was not finalized. Therefore
tax impact due to survey is not quantifiable and remains unprovided and will be
dealt with in the year when finalized.
18. During the year Company sold its WOS-Crew BOS Far East Limited, Hong
Kong. This was not functional and the loan given / investment made net of
recoveries from sale of shares have been written off which amounts to Rs. 2.706
Millions.
19. Keeping in view the expansion plans of the company the board does not
recommend any payment of dividend.
WEBSITE DETAILS
PROFILE
Subject
was incorporated in 1988 under the name and style of Motherson Unimetex Private
Limited. Subsequently the name was changed to Subject.
The
Company’s business model is based on manufacture and export of fashion accessories
and home decoration products made from fabrics, leather, metal, wood etc. The
company is involved in selling fashion accessories products innovated through
unique ideas. The company’s product profile ranges from belts, bags,
portfolios, business cases, footwear, wallets, boxes, furniture to home
furnishings. Subject is constantly engaged in broad basing its product
portfolio in order to keep itself abreast with the latest changes in fashion
trends around the world. In order to enlarge and strengthen its product
portfolio it has recently started manufacture and exports of watch straps.
It
was rated as top exporter from North India by Council of Leather Exports for
the financial year 1999-2000 and 2001-02 in the category of leather goods and accessories.
The company operates from its seven facilities in Gurgaon and Manesar for
manufacturing various fashion products. The company’s revenue model is based on
catering to the outsourcing requirements of the leading international brands in
U.S. and Europe. The company has a highly scalable business model and there is
tremendous scope for ramping up every individual client account.
The
company’s customer profile comprises reputed international retail brands like
NEXT PLC, ESPIRIT, ZARA, MASSIMODUTTI, ARMANI EXCHANGE, TESCO, H and M in
Europe. The customers in USA include GAP, BANANA REPUBLIC, OLD NAVY, CHICO’s,
FOSSIL.
Over
the years, Crew B.O.S has fully transformed itself from being just a bags and
belt manufacturer to a multi-product company catering to a complete range of
fashion accessories and home decoration products.
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 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. 55.36 |
|
|
1 |
Rs. 85.63 |
|
Euro |
1 |
Rs. 69.21 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.