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Report Date : |
17.03.2012 |
IDENTIFICATION DETAILS
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Name : |
THADEY LEATHER COMPANY |
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Registered
Office : |
53/55 Vepery High Road, Periamet, Chennai – 600003, Tamilnadu |
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Country : |
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Year of
Establishment : |
1947 |
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Capital
Investment / Paid-up Capital : |
Not Divulged |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners |
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Line of Business
: |
Manufacturer, Trader and Exporter of Finished leather and shoes. |
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No. of Employees
: |
3500 (Approximately) [Group Employees] |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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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) |
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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 |
INFORMATION PARTED BY
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Name : |
Mr. Aftab |
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Designation : |
Manager – Ambur Unit |
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Contact No.: |
91-4174-245086 |
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Date : |
14.03.2012 |
LOCATIONS
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Registered Office : |
53/55 Vepery High Road, Periamet, Chennai – 600003, Tamilnadu, India |
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Tel. No.: |
91-44-25613500 – 99 Lines |
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Fax No.: |
91-44-25611277 |
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E-Mail : |
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Website : |
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Factory : |
66/1, Kommesswaram, MC Road, Ambur – 635802, Tamilnadu, India |
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Tel. No.: |
91-4174-242438/ 243319 |
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Branches : |
Located at : ·
Chennai |
PARTNERS
|
Name : |
Mr. T Faizan Ahmed |
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Designation : |
Partner |
Other partner name is Not Divulged
KEY EXECUTIVES
|
Name : |
Mr. Aftab |
|
Designation : |
Manager – Ambur Unit |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Trader and Exporter of Finished leather and shoes. |
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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. |
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Exports : |
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Products : |
Finished Leather Shoes |
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Countries : |
·
USA ·
Europe |
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Imports : |
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Products : |
·
Chemicals ·
Raw Hides, etc |
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Countries : |
·
Spain ·
Portugal ·
Italy |
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Terms : |
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Selling : |
L/C/ Credit (30 days) |
GENERAL INFORMATION
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Customers : |
·
Wholesalers ·
Retailers ·
OEM’s |
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No. of Employees : |
3500 (Approximately) [Group Employees] |
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Bankers : |
State Bank of India, Leather International Branch, Periamet, Chennai –
600003, Tamilnadu, India |
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Banking
Relations : |
-- |
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Auditors : |
Not Available |
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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
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Capital Investment : |
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Owned : |
Not Divulged |
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Borrowed : |
-- |
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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,
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 |
|
|
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 |
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--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--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.