1. Summary Information

 

 

Country

India

Company Name

VISHWANATHAN AND COMPANY

Principal Name 1

Mr. V Venkatesan

Status

Satisfactory

Principal Name 2

Mr. Ravi Venkatesan

 

 

 

Registration #

--

Street Address

A2 III Phase, Guindy Industrial Area, Chennai – 600032, Tamilnadu, India

Established Date

1975

SIC Code

--

Telephone#

91-44-22501276

Business Style 1

Manufacturer

Fax #

Not Available

Business Style 2

Exporter

Homepage

Not Available

Product Name 1

Finished Leathers

# of employees

510 (Approximately)

Product Name 2

Shoes

Paid up capital

Not Divulged

Product Name 3

Shoes Uppers

Shareholders

Not Available

Banking

State Bank of India

Public Limited Corp.

NO

Business Period

37 Years

IPO

NO

International Ins.

-

Public Enterprise

NO

Rating

Ba (50)

Related Company

Relation

Country

Company Name

CEO

Sister Concern

India

Subramnian and Company

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

--

Current Liabilities

--

Inventories

--

Long-term Liabilities

--

Fixed Assets

--

Other Liabilities

--

Deferred Assets

--

Total Liabilities

--

Invest& other Assets

--

Retained Earnings

--

 

 

Net Worth

--

Total Assets

--

Total Liab. & Equity

--

 Total Assets

(Previous Year)

--

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Turnover

250,000,000

Net Profit

--

Turnover (Previous yr)

--

Net Profit(Prev.yr)

--

 

MIRA INFORM REPORT

 

 

Report Date :

15.09.2012

 

IDENTIFICATION DETAILS

 

Name :

VISHWANATHAN AND COMPANY

 

 

Registered Office :

A2 III Phase, Guindy Industrial Area, Chennai – 600032, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Year of Establishment :

1975

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

Legal Form :

Partnership Concern with an unlimited liability of the partners

 

 

Line of Business :

Manufacturer, Exporter and Importer of Finished Leathers, Shoes and Shoes Uppers.

 

 

No. of Employees :

510 (Approximately) (In Factory 500) (In Office 10)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

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

 

 

INFORMATION PARTED BY

 

Name :

Mr. Sundaram 

Designation :

Manager

Contact No.:

91-44-22501431

Date :

14.09.2012

 

 

LOCATIONS

 

Registered Office :

A2 III Phase, Guindy Industrial Area, Chennai – 600032, Tamilnadu, India

Tel. No.:

91-44-22501276

Fax No.:

Not Available

E-Mail :

info@viswagroup.com

viswas_co@eth.net

 

 

Factory  :

45A, Sipcot Industrial Area, Ranipet, District Vellore – 632403, Tamilnadu, India

 

 

PARTNERS

 

Name :

Mr. V Venkatesan

Designation :

Partner

 

 

Name :

Mr. Ravi Venkatesan

Designation :

Partner

 

 

Name :

Mr. Hari Venkatesan

Designation :

Partner

 

 

Name :

Mr. Karthik Venkatesan

Designation :

Partner

 

 

KEY EXECUTIVES

 

Name :

Mr. Sundaram 

Designation :

Manager

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Finished Leathers, Shoes and Shoes Uppers.

 

 

Exports :

 

Products :

·         Finished Leathers

·         Shoes

·         Shoes Uppers

Countries :

·         USA

·         Uk

 

 

Imports :

 

Products :

·         Chemicals

Countries :

·         Europe

 

 

Terms :

 

Selling :

L/C and Credit (30 days)

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers  and End Users

 

 

No. of Employees :

510 (Approximately) (In Factory 500) (In Office 10)

 

 

Bankers :

State Bank of India, Sipcot, , Ranipet, Tamilnadu, India

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

Not Available

 

 

Sister Concern :

Kaushik Leathers Private Limited

 

Name: Subramnian and Company

Address: A2 III Phase, Guindy Industrial Area, Chennai – 600032, Tamilnadu, India

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

Not Divulged

Total :

Not Divulged

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

250.000

 

 

 

 

 

 

The above information has been parted by Mr. Sundaram 

 

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

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last one year

Yes

12]

Profitability for last one year

No

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

No

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

31]

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

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

 

PROFILE

 

This is a partnership firm started in the year 1975. One of the oldest leather manufacturers in Tamilnadu it is a family firm. The partners are :

1.  Mr. V Venkatesan

2.  Mr. V Ravi Venkatesan

3.  Mr. Hari Venkatesan

4.  Mr. Karthik Venkatesan

 

The head office is situated in Chennai in the Guindy Industrial Area and the factory is situated in Ranipet.   The firm has been in business for the past 35 years and has a very good reputation. They are manufacturers of Cow finished leather, Shoes and shoe uppers. The office at Guindy Industrial estate-serves as a liaison office for all their group concerns. The group consists of:

 

1. Vishwanathan and Company

2. Subramanian and company

3. Kaushik leathers Private Limited

 

The factory is situated in Ranipet and employs about 500 people. A word about Ranipet must be said here. Ranipet is situated about 3 hours drive from Chennai and has a large concentration of tanneries processing hides and skins from raw to finish. Various items of leather like lining, upper and suede leathers are made here for supply to national and international customers. There are any number of factories that are doing job tanning here.

Besides these, there are many highly sophisticated and modern units where world class shoes, garments and leather goods are made. Sipcot industrial complex is dedicated to leather and heavy engineering industries. The Sipcot Industrial complex houses leather factories whose products are known worldwide.   Now the factory is called Kaushik Leather Industries Private Limited and is in the Sipcot Industrial area. The extent of the factory is 1.49 acres. They have the state of the art machinery to manufacture quality finished leather and shoes. The capacity in finished leather is about 10,000 sq.ft per month. The products manufactured here and sent to Chennai from where they are exported to USA and UK. Their export activities are large while their import activities are negligible.

 

They are members of AISHTMA.

 

The All India Skin and Hide Tanners and Merchants Association,

"Leather Centre",

43/53, Raja Muthiah Road, Periamet, Chennai - 600 003, Tamilnadu, India

Telephone: 0091-44-25610636, 25615247

Fax: 0091-44-25615292

E-mail: aishtma@vsnl.com  and assn@aishtma.com 

Website: http://www.aishtma.com

 

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

So, you can imagine the extent of the leather manufactured in Tamilnadu. The firm has a turnover of Rs.250.000 Millions per year and employs about 500 people. Their bankers are State Bank of India, Sipcot, Ranipet and other banks here in Chennai.

 

A large sized leather exporter who is more than three decades old and has a very good reputation. Their factory is registered with the Registrar of companies at Chennai and the registration number is U 19119 TN 1981 PTC 008927. The authorized capital of the company is 5.000 Millions and the paid up capital is Rs4.560 Millions. They are a cash rich company and do not have any major outstanding loans.

 

The sale arm is Vishwanathan and Company. Situated in Chennai they look after sales and Logistics. About 10 people work here. Packing, shipping is all done through Vishwanathan and Company.


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.54.73

UK Pound

1

Rs.88.61

Euro

1

Rs.71.34

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 


 

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

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--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

 

50

 

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.