MIRA INFORM REPORT

 

 

Report Date :

17.03.2012

 

IDENTIFICATION DETAILS

 

Name :

THADEY LEATHER COMPANY

 

 

Registered Office :

53/55 Vepery High Road, Periamet, Chennai – 600003, Tamilnadu

 

 

Country :

India

 

 

Year of Establishment :

1947

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Manufacturer, Trader and Exporter of Finished leather and shoes.

 

 

No. of Employees :

3500 (Approximately) [Group Employees]

 

 

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 a well established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The concern 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INFORMATION PARTED BY

 

Name :

Mr. Aftab

Designation :

Manager – Ambur Unit

Contact No.:

91-4174-245086

Date :

14.03.2012

 

 

LOCATIONS

 

Registered Office :

53/55 Vepery High Road, Periamet, Chennai – 600003, Tamilnadu, India

Tel. No.:

91-44-25613500 – 99 Lines

Fax No.:

91-44-25611277

E-Mail :

taw@tawahid.com

Website :

www.tawahid.com

 

 

Factory :

66/1, Kommesswaram, MC Road, Ambur – 635802, Tamilnadu, India

Tel. No.:

91-4174-242438/ 243319

 

 

Branches :

Located at :

·         Chennai

 

 

PARTNERS

 

Name :

Mr. T Faizan Ahmed

Designation :

Partner

 

Other partner name is Not Divulged

 

 

KEY EXECUTIVES

 

Name :

Mr. Aftab

Designation :

Manager – Ambur Unit

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader and Exporter of Finished leather and shoes.

 

 

Products :

Leather

·         Bovine/ Catttle

·         Buffalo/ Bison

·         Chicken leg

·         Chinchilla

·         Crocodile/ Aglligator

·         Deer

·         Fox

·         Goat

·         Kangaroo

·         Lamb/ Sheep

·         Mink

·         Ostrich

·         Pig/ Hog

·         Others

·         Exotic

·         Snake

·         Fish

·         Lizard

·         Stingray/ Shagreen

·         Men’s Complete shoes, Dress and Casuals Moccasin, Handswen, Strobel, etc.

 

 

Exports :

 

Products :

Finished Leather Shoes

Countries :

·         USA

·         Europe

 

 

Imports :

 

Products :

·         Chemicals

·         Raw Hides, etc

Countries :

·         Spain

·         Portugal

·         Italy

 

 

Terms :

 

Selling :

L/C/ Credit (30 days)

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

·         OEM’s

 

 

No. of Employees :

3500 (Approximately) [Group Employees]

 

 

Bankers :

State Bank of India, Leather International Branch, Periamet, Chennai – 600003, Tamilnadu, India

 

 

 

Banking Relations :

--

 

 

Auditors :

Not Available

 

 

Sister Concerns :

·         Faizan Shoes Private Limited

Address : 53/55, Vepery High Road, Chennai – 600003, Tamilnadu, India

·         T Abdul Wahid and Company

Address : 53/55, Vepery High Road, Chennai – 600003, Tamilnadu, India

·         T Abdul Wahid Tanneries Private Limited

Address : 53/55, Vepery High Road, Chennai – 600003, Tamilnadu, India

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

--

Total :

Not Divulged

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

NOT DIVULGED

 

The above information has been denied by Mr. Aftab.

 

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

 

 

LOCAL AGENCY FURTHER INFORMATION

 

THADEY LEATHER COMPANY

 

This is a member of the group of T Abdul Wahid and Co. This firm was started in 1947 and was the first firm to be started with respect to the Wahid group. All other units came after this. Though the firm is a partnership firm with Wahid family members owing all the firms of the group, this particular firm Thadey Leather Company is being looked after by Mr Faizan Ahmed.

 

The corporate office is in Vepery high Road and the factory is situated in Ambur.

 

A Note about Ambur:

 

Arnbur as you know is the Mecca for finished leather and leather goods. Factories in Ambur manufacture shoes for world's leading footwear brand names likes Florsheim, Lumberjack, Cole Haan, Gabor, Caterpillar, Clarks, Fretzmen, Hi-Line, Hugo, Boss etc. Some of the Indian big names that have set up manufacturing units here are Althaf Shoes, Roshan Carim omer and company, Faizan Shoes  Limited ( a member of T Wahid and Company, sister concern of Thadey leather company) Farida Shoes, SSC, Bonaventure, NMZ, TAW, KAR, Kareema Leather Products, Mohib Shoes, Mohib India Shoes,Shalimar Tanning Company, Harmain Leather Exports, Bliss Shoes,Fahim Tanning Company.Afra Leather Exports etc.; and now FDls (Foreign Direct Investments) have become very common, to name a few establishments ITARES (Italy Renzi Shoes) of Italy, Allen Solly of Switzerland etc. These companies provide a major chunk of employment to the low1 population. Traders of supplying shoe materials to these companies have a huge business over here. It has been recognized as 'Town of Export Excellence' for leather products by Government of India.

 

Mr T Abdul Wahid established Thadey leather company and T Abdul Wahid and Co (TAW) in 194711949 with a leased tannery in Chennai. A remarkably short five years later, the company emerged as the largest exporter of vegetabvle tanned leather to America and Europe and wet blue skins to the Soviet Union. Came the seventiesand TAW diversified into finished leathers. Two ultra modern tanneries, fitted with equipmebt from Europe capable of producing 2 million sq.ft every month. By the turn of the decade TAW group was supplying fine kidskin to reputed shoe manufacturers worldwide. The next move was logical. Taw entered into production of shoes for the western markets.

 

Today its highly sophisticated shoe factories are a pool of American and European footwear manufacturing expertise. Thadey leather company manufactures and exports finished leather and leather shoes.

 

Given below in the factory column you will find details of the groups manufacturing facilities. They have a centralized production facility which is used by all firms of the group. You will have to study the whole group to get an idea of how big Thadey Leather Company is.

 

A , B and C Tanneries

 

Established in the year 1949 at Ambur, North Arcot District, the A Tannery manufactures finished hides and skins while the B Tannery produces EIT and WBC goat skins and the Tannery C is solely a manufacturer of goat skins. The Tanneries provide direct employment to 1600 people.

While the A and C Tanneries have finished leather from skins capacity of 1.5 million sft per month and a finished leather from hides capacity of 1,00,000 sft per month, the B Tannery has a capacity of 36,00,000 pcs of vegetable tanned goat skin and chrome tanned goat skins.

 

Footwear Division:

Established in the year 1986 at kommeswaram Ambur, this division has expanded and diversified its activities, operating from a single large complex. An 1800 strong work force is currently employed in this complex which has two shoe upper manufacturing facilities which together have a capacity to produce 5000 pairs of Men’s and women’s uppers per day. The complex also has a completed shoe unit with a capacity of 3000 prs/day and a unit to manufacture leather unit soles, insoles and counters. The footwear Division is totally self-contained in the sense that all vital components are manufactured in-house.

 

State of the art machinery, skilled work force, and the ever-present stress on Quality has seen this Division attract some of the leading names of the global footwear industry to repose their trust and confidence in it.

The individual capacity of shoe uppers and full shoes stand at 15,00,000 prs and 10,00,000prs respectively.

 

Faizan Shoe Private Limited

 

As part of its expansion activities, the company in 1993 started a new venture Faizan Shoes Private Limited, with its factory located in Solur, Ambur. This facility has a capacity to manufacture 2000 prs of shoe uppers and 2000 prs of completed Shoes a day. Employing around 600 workers, the factory specializes in men’s moccasin shoes and sophisticated women’s shoe-uppers for export, Mr. Faizan Ahmed is the Managing Director of the company.

 

In its ceaseless quest of implementing new technologies, TAW has never lost sight of a basic truth- there is only one earth. Little wonder then, the qualities of TAW'S facilities for exceed regulatory requirements, and adhere to a world class environmental program. Senior management commitment, current technologies and associations with Central leather research institute, National Environmental Research Institute and UNlDO Industrial Pollution Research Team, has enabled TAW to take positive strides in environmental control and protection.

 

Effluent Treatment plants employing Anaerobic treatment in combination with extended aeration, have been installed for all the three leather processing plants, which individually handle 150,200,300 m3(cube)/day of waste water.

 

A State-of the art chrome recovery plani.with a capacity if 90,000 Ltrs./week, encourages reuse of chromium and ensures a ZERO chromium discharge in the treated water.

 

It's a matter of pride that TAW has successfully maintained around 30 hectares of GREEN land for sustainable development.

 


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.50.31

UK Pound

1

Rs.79.05

Euro

1

Rs.65.83

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

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

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

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

-

 

 

 

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.