MIRA
INFORM REPORT
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Report Date : |
06.03.2012 |
IDENTIFICATION DETAILS
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Name : |
ARVIND FOOTWEARS PRIVATE LIMITED |
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Registered
Office : |
E 56, Panki Industrial Area, Site III, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
17.10.1996 |
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Com. Reg. No.: |
20-020863 |
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Capital
Investment / Paid-up Capital : |
Rs.7.650
millions |
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CIN No.: [Company Identification
No.] |
U18104UP1996PTC020863 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
KNPA01414A |
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PAN No.: [Permanent Account No.] |
AABCP1870B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Exporter of Leather Footwear
and Components. |
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No. of Employees
: |
499 (Approximately) |
RATING & COMMENTS
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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 368000 |
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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 reported
as fair. Business is active. Payments are reported to be usually correct 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/ Factory : |
E 56, Panki Industrial Area, Site III, |
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Tel. No.: |
91-512-2692518/ 20/ 21/ 22 |
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Fax No.: |
91-512-2692519/ 2290671 |
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E-Mail : |
arvind@arvinco.com |
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Website : |
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Area : |
16848 sq ft |
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Location : |
Leased |
DIRECTORS
As on 30.09.2011
|
Name : |
Mr. Arvind Bagla |
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Designation : |
Managing Director |
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Address : |
2A/377, A-2, Azad Nagar, |
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Date of Birth/Age : |
22.06.1965 |
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Qualification : |
M.B.A |
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Date of Appointment : |
17.10.1996 |
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01011700 |
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Other Directorship :
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Name : |
Mr. Rajendra Kumar Jalan |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
10.12.1953 |
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Date of Appointment : |
30.09.2009 |
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DIN No.: |
02674948 |
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Other Directorship :
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
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Names of Shareholders |
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No. of Shares |
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Arvind Bagla |
|
317085 |
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Udit Jalan |
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283500 |
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Anushrie Bagla |
|
32160 |
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Arvind Kumar and Sons (HUF) |
|
41505 |
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Indra Jalan |
|
750 |
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Krishana Jalan |
|
8250 |
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Rajendra Kumar Jalan |
|
6750 |
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Rajendra Kumar Jalan (HUF) |
|
45000 |
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Ram Gopal Arvind Kumar (HUF) |
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15000 |
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Maya Bagla |
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15000 |
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Total |
|
765000 |
As on 30.09.2011
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Directors
or relatives of directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Leather Footwear
and Components. |
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Products : |
v Western Cowboy Boot v Men's, Ladies and Children's casual Shoes v Sandals |
PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
2010-11 |
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Licensed Capacity |
N.A. |
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Installed Capacity |
N.A. |
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Actual Production (in Nos.) |
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Shoe |
581170 |
GENERAL INFORMATION
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No. of Employees : |
499 (Approximately) |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Santosh K. Gupta and Associates Chartered Accountants |
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Address : |
128/110, Block - G, Kidwai Nagar, |
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Tel. No.: |
91-512-2605686 |
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Fax No.: |
91-512-2605690 |
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E-Mail : |
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Income-tax
PAN of auditor or auditor's firm : |
AARFS6820K |
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Subsidiaries : |
Arkay Boots and
Shoes Private Limited CIN No.: U19202UP2000PTC025044 |
CAPITAL STRUCTURE
As on 30.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
765000 |
Equity Shares |
Rs.10/- each |
Rs.7.650
millions |
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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 |
7.650 |
7.650 |
2.700 |
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2] Share Application Money |
0.000 |
0.000 |
1.943 |
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3] Reserves & Surplus |
84.312 |
73.517 |
61.441 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
91.962 |
81.167 |
66.084 |
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LOAN FUNDS |
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1] Secured Loans |
104.420 |
107.127 |
76.304 |
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2] Unsecured Loans |
1.158 |
3.115 |
4.299 |
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TOTAL BORROWING |
105.578 |
110.242 |
80.603 |
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DEFERRED TAX LIABILITIES |
1.335 |
1.693 |
0.000 |
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TOTAL |
198.875 |
193.102 |
146.687 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
38.033 |
36.347 |
31.612 |
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Capital work-in-progress |
0.000 |
1.783 |
0.000 |
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INVESTMENT |
0.900 |
0.400 |
1.400 |
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DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
37.585
|
24.545 |
19.867 |
|
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Sundry Debtors |
132.234
|
104.040 |
82.749 |
|
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Cash & Bank Balances |
16.445
|
23.931 |
16.289 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
17.921
|
26.253 |
18.875 |
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Total
Current Assets |
204.185
|
178.769 |
137.780 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Sundry Creditors |
23.698
|
4.822 |
14.119 |
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Other Current Liabilities |
12.547
|
8.375 |
3.178 |
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Provisions |
7.998
|
11.000 |
6.808 |
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Total
Current Liabilities |
44.243
|
24.197 |
24.105 |
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Net Current Assets |
159.942
|
154.572 |
113.675 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
198.875 |
193.102 |
146.687 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
437.498 |
401.883 |
283.822 |
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Other Income |
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TOTAL (A) |
437.498 |
401.883 |
283.822 |
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Less |
EXPENSES |
|
|
|
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|
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|
400.897 |
354.137 |
251.427 |
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Administrative Expenses |
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Advertising Expenses |
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TOTAL (B) |
400.897 |
354.137 |
251.427 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
36.601 |
47.746 |
32.395 |
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|
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|
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Less |
FINANCIAL
EXPENSES (D) |
12.249 |
11.020 |
7.998 |
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
24.352 |
36.726 |
24.397 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.238 |
4.543 |
4.396 |
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PROFIT BEFORE
TAX (E-F) (G) |
19.114 |
32.183 |
20.001 |
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Less |
TAX (H) |
7.195 |
14.573 |
6.711 |
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PROFIT AFTER TAX
(G-H) (I) |
11.919 |
17.610 |
13.290 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
68.796 |
54.170 |
42.460 |
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend on Equity Shares |
1.530 |
2.550 |
1.350 |
|
|
|
Tax on Dividend |
0.248 |
0.433 |
0.230 |
|
|
BALANCE CARRIED
TO THE B/S |
78.937 |
68.797 |
54.170 |
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EARNINGS IN
FOREIGN CURRENCY |
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|
Export of Goods |
423.946 |
395.767 |
278.261 |
|
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TOTAL EARNINGS |
423.946 |
395.767 |
278.261 |
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IMPORTS |
|
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Raw Materials |
7.617 |
15.017 |
6.872 |
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Spare Parts |
0.024 |
1.352 |
1.322 |
|
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Capital Goods |
2.991 |
3.898 |
1.404 |
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TOTAL IMPORTS |
10.632 |
20.267 |
9.598 |
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|
Earnings Per
Share (Rs.) |
15.58 |
23.02 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.72
|
4.38 |
4.68 |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.89
|
14.96 |
11.81 |
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.40 |
0.30 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
1.63
|
1.66 |
1.58 |
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|
Current Ratio (Current Asset/Current Liability) |
|
4.62
|
7.39 |
5.72 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
Total Income
increased by 8 % to Rs.437.498 millions as against Rs.401.883 millions in the
previous year .Profit before Depreciation, Interest and Tax decreased by 23% to
Rs.36.600 millions as against Rs.47.746 millions in the previous year. Though
sales of footwear was increased by 105929 pair in compare to the sale in the
previous year. But this increase of sales of footwear could not be converted in
increase in value of sales due adverse rate of euro in compare to previous
year. The average realization euro in term of Rupee has come down by
approximate 12% in compare to previous year. Due to stiff competition in
international market the impact of adverse exchange could not be shifted to
customer. Resultant that Profit after tax for the year decreased to Rs.11.919
millions as against Rs.17.610 millions in the previous year.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U18104UP1996PTC020863 |
|
Name of the
company |
ARVIND FOOTWEARS PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
E 56, Panki Industrial Area, Site III, E-Mail: arvind@arvinco.com |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90269133 |
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
State Bank of E-Mail: jkscoknp@gmail.com |
|
Nature of description
of the instrument creating or modifying the charge |
(i) Supplemental
Agreement of Loan cum Hypothecation (SME-4)
(ii) Letter of
Arrangement (SME-1) (iii) Link Letter
(SME-12) |
|
Date of
instrument Creating the charge |
29.03.2010 |
|
Amount secured by
the charge |
Rs.145.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest: Interest to be
charged @ 2.75% below SBH BPLR. Present effective rate being 9.50% p.a. with
monthly rests or at such other rate(s) as may be notified by the Bank to the
Borrower form time to time. Terms of
Repayment: Working Capital -
Repayable on demand. Margin: 25% on Raw
Material-Imported/Indigenous, Semi Finished Goods, Finished Goods,
Components/ consumables/ spares 50% on Domestic
receivables 25% on EPC 25% on LC 25% on BG Extent and
Operation of the charge: The Company's
assets as mentioned hereunder are hypothecated to secure following credit facilities
aggregating Rs.145.000 millions granted by the Bank to the Borrower:- 1. CC(PC) Rs.10.000 millions 2.
FBP/FUBDRs.80.000 millions 3. BNLC Rs.50.000 millions 4. BG Rs. 2.500 millions 5. LC Rs.2.500 millions TOTAL
Rs.145.000 millions Rs.5.000 millions
interchangeability from PC to FUBD Rs.30.000
millions interchangeability from FUBD to BNLC 100%
interchangeability from LC to BG |
|
Short particulars
of the property charged |
First charge on
entire current assets (both present and future) by way of hypothecation of
raw materials, goods, vehicles and all other movables assets of the Borrower. Hypothecation of
all the Borrower's book debts, receivables, documents of title to goods,
outstanding monies, bills, invoices, documents, contracts, guarantee,
securities, engagement, investments and rights etc. Hypothecation of
all the Borrower present and future machinery belonging to or in the
possession or control of the Borrower wherever lying, stored, kept or in
transit |
|
Date of latest
modification prior to the present modification |
01.04.2009 |
|
Particulars of
the present modification |
The various
credit facilities granted by the Bank has now been enhanced from Rs.115.000
millions to Rs.145.000 millions. Therefore, total
amount of charge secured against hypothecation of stocks, book debts, plant
and machinery etc. |
FIXED ASSETS:
v
v
v
Building (Unit No.1)
v
Building (Unit No.2)
v
v
Lift
v Plant and
Machinery
v
Office Equipments
v Computer
v Fax Machine
v Refrigerator
v Fire
Extinguishers
v Invertors,
v Xerox Machine
v Hand Set
(Telephone)
v Office equipment
other
v Air Conditioners
v Aqua guard Machine
v Water Cooler
Machine
v Cooler
v Paper Shreder
v Digital Camera
v Microwave Oven
v Four Lane Digital
Machine
v Furniture and
Fixture
v Furniture and
Fixture B-11
v Electrical Fitting
v Electrical Fitting
B-11
v Generator
v Motor Car
v Motor Van
v Water Storage Tank
v Reserve Osmosis
Plant
v
Cooling Plant
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.49.80 |
|
|
1 |
Rs.78.79 |
|
Euro |
1 |
Rs.65.74 |
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 |
4 |
|
--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 |
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 |
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.