MIRA
INFORM REPORT
|
Report Date : |
12.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
MIRZA INTERNATIONAL LIMITED |
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|
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Registered
Office : |
14/6 Civil Lines, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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|
|
Date of
Incorporation : |
05.09.1979 |
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Com. Reg. No.: |
20-004821 |
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Capital
Investment / Paid-up Capital : |
Rs. 185.400 Millions |
|
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|
|
CIN No.: [Company Identification
No.] |
L19129UP1979PLC004821 |
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|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Leather and Leather
Footwear. |
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No. of Employees
: |
2518 (Approximately) |
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 10000000 |
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|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a fine track record. Financial position of the company appears to be strong. Over all
fundamentals of the company appears to be sound and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International Finance
Corporation expects to come out with its rupee linked bonds issue before the
end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs
41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched
in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans: A- |
|
Rating Explanation |
Adequate degree of safety low credit risk. |
|
Date |
September 2013 |
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.
LOCATIONS
|
Registered Office/ Head Office : |
14/6, Civil Lines,
|
|
Tel. No.: |
91-512-2530775 / 844 / 676 |
|
Fax No.: |
91-5+612-2530166 / 2534301 |
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E-Mail : |
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|
Website : |
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Corporate and Marketing Office : |
A-7, Mohan
Cooperative Industrial Estate, |
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Tel. No.: |
91-11-26959553/ 9554 |
|
Fax No.: |
91-11-26959559/ 0499 |
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|
Factory 1 : |
Kanpur – Unnao
Link Road, Magarwara, Unnao – 209 801, Uttar Pradesh, India |
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Factory 2 : |
Kanpur – Unnao
Link Road, Sahjani, Unnao – 209 801, Uttar Pradesh, India |
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Factory 3 : |
UPSIDC Industrial
Area, Site II, Unnao – 209 801, Uttar Pradesh, India |
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Factory 4 : |
C-4, 5, 36 and
37, Sector – 59, Noida – 201 303, Uttar Pradesh, India |
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Factory 5 : |
1A, Sector-Ecotech-
I, Extension- I, Greater Noida – 201 308, Uttar Pradesh, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Irshad Mirza |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rashid Ahmed Mirza |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
Diploma in Leather Technology, |
|
Experience : |
36 Years |
|
|
|
|
Name : |
Mr. Shahid Ahmad Mirza |
|
Designation : |
Whole- time Director |
|
Date of Birth/Age : |
55 Years |
|
Qualification : |
Diploma in Leather Goods Technology, U.K |
|
Experience : |
33 Years |
|
|
|
|
Name : |
Mr. Tauseef Ahmad Mirza |
|
Designation : |
Whole- time Director |
|
Date of Birth/Age : |
43 Years |
|
Qualification : |
Diploma in Shoe Technology, |
|
Experience : |
23 Years |
|
|
|
|
Name : |
Mr. Tasneef Ahmad Mirza |
|
Designation : |
Whole- time Director |
|
Date of Birth/Age : |
40 Years |
|
Qualification : |
Degree in Leather Technology, |
|
Experience : |
15 Years |
|
Date of Appointment : |
01.01.1997 |
|
Other Directorships : |
· Shoemax Engineering Limited · Shoemac Leather Tech Engineers Limited · Emgee Projects Private Limited · Mirza Holdings Private Limited · Red Tape International Private Limited · Azad Multispeciality Hospitals and Research Centre Limited ·
Mirza Agrotech Private Limited |
|
|
|
|
Name : |
Mr. N.P. Upadhyay |
|
Designation : |
Whole- time Director |
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|
|
|
Name : |
Dr. Yashveer Singh |
|
Designation : |
Director |
|
Date of Birth/Age : |
65 Years |
|
Qualification : |
M.SC., M. Phil, PhD |
|
Date of Appointment : |
06.02.2012 |
|
|
|
|
Name : |
Mr. Pashupati Nath Kapoor |
|
Designation : |
Director |
|
Date of Birth/Age : |
74 Years |
|
Qualification : |
B. Tech (Mech) IIT and M.S. (Mech), |
|
Date of Appointment : |
08.07.1994 |
|
|
|
|
Name : |
Mr. Qazi Noorus Salam |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Sudhindra Jain |
|
Designation : |
Director |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
M. Com., LL.B, FCA |
|
Date of Appointment : |
30.07.2008 |
|
Other Directorships : |
Rajdhani Leasing and Industries Limited |
|
|
|
|
Name : |
Mr. Subhash Sapra |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Islamul Haq |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
|
|
Designation : |
Vice President (Accounts) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
60155981 |
64.89 |
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|
60155981 |
64.89 |
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|
|
|
|
|
1000000 |
1.08 |
|
|
1000000 |
1.08 |
|
Total shareholding of Promoter and Promoter Group (A) |
61155981 |
65.97 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5500 |
0.01 |
|
|
41500 |
0.04 |
|
|
47000 |
0.05 |
|
|
|
|
|
|
3777887 |
4.08 |
|
|
|
|
|
|
20596751 |
22.22 |
|
|
6114846 |
6.60 |
|
|
1013535 |
1.09 |
|
|
948967 |
1.02 |
|
|
2500 |
0.00 |
|
|
62068 |
0.07 |
|
|
31503019 |
33.98 |
|
Total Public shareholding (B) |
31550019 |
34.03 |
|
Total (A)+(B) |
92706000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
92706000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Leather and Leather
Footwear. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
Chrome Leather |
Sq. Mtr. |
*756427 |
|
Footwear |
Pair |
3103933 |
|
Shoe Uppers |
Pair |
3265560 |
(Figures
in lacs)
|
Particulars |
Unit |
Licensed
Capacity (As per LI/Licence) |
Installed
Capacity |
*Actual
Production |
|
Footwear |
Pairs |
N.A. |
48.00 |
31.04 |
|
Chrome Leather |
Sq. Mtr. |
N.A. |
-- |
7.56 |
* Represents final
production for sale and does not include intermediate products consumed for
down stream production. Installed capacity figures are as certified by the
Management and being a matter of technical nature not verified by the auditors.
These have been expressed in units of quantities in which licences have been
issued except in case of leather where it has been expressed in Sq.Mtrs. Which,
in the opinion of the Management, is the appropriate unit of quantity.
GENERAL INFORMATION
|
No. of Employees : |
2518 (Approximately) |
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Bankers : |
Punjab National
Bank, The Mall, Kanpur, Uttar Pradesh, India |
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Facilities : |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
Khamesra Bhatia
and Mehrotra Chartered
Accountants |
|
|
|
|
Cost Auditors : |
Mr. A.K.
Srivastava Cost Accountant |
|
|
|
|
Secretarial
Auditors : |
Savita Jyoti
Associates Company
Secretaries |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
225000000 |
Equity Shares |
Rs.2/- each |
Rs.450.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
92706000 |
Equity Shares |
Rs.2/- each |
Rs.185.400 millions |
|
|
|
|
|
Note:
The reconciliation
of the number of shares outstanding at the beginning and at the end of the
reporting period
|
Particulars |
Equity
Shares |
|
|
Number |
Rs. in Millions |
|
|
Shares
outstanding at the beginning of the year |
92706000 |
185.400 |
|
Shares Issued during
the year |
- |
- |
|
Shares bought
back during the year |
- |
- |
|
Shares outstanding at the end of the year |
92706000 |
185.400 |
The details of
Shareholders holding more than 5% shares
|
Name of Shareholder |
As at 31st March, 2013 |
|
|
No. of Shares |
% of Holding |
|
|
Irshad Mirza |
6793541 |
7.33% |
|
Tauseef Ahmad Mirza |
6944000 |
7.49% |
|
Tasneef Ahmad Mirza |
7728650 |
8.34% |
|
Yasmin Mirza |
11300850 |
12.19% |
Details of shares alloted/bought
back during the previous five years immediately preceding the date of
Balance Sheet:
Company has not
issued any shares as fully paid up pursuant to contracts without payment being received
in Cash or by way of shares allotted as fully paid up as by way of Bonus Shares
and has not bought back any shares during the period of five years immediately
preceding the date of this Balance Sheet.
Rights,
Preferences and restrictions attached to Shares:
The Company has
only one class of Equity Shares having a par value of Rs.2/- each. Each shareholder is entitled to
one vote per share held. The Dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General Meeting,
except in case of Interim Dividend. In the event of liquidation of the Company,
the Equity Shareholders are eligible to receive remaining assets of the
Company, after distributing all the preferential amounts, in the proportion of
their Shareholding.
Disclosure pursuant to Note no. 6(U) of Part I of Schedule VI to the
Companies Act, 1956
|
Name of Shareholder |
As at 31st March, 2013 |
|
|
Rs. In Millions |
Per Shares |
|
|
Dividend proposed
to be distributed to equity shareholders |
46.400 |
0.50 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
185.400 |
185.400 |
185.400 |
|
(b) Reserves & Surplus |
2327.500 |
1882.500 |
1600.100 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2512.900 |
2067.900 |
1785.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
503.800 |
458.600 |
351.700 |
|
(b) Deferred tax liabilities (Net) |
189.800 |
183.000 |
174.000 |
|
(c) Other long term liabilities |
20.300 |
17.300 |
11.200 |
|
(d) long-term provisions |
48.300 |
43.4000 |
38.400 |
|
Total Non-current Liabilities (3) |
762.200 |
702.300 |
575.300 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1040.200 |
1024.000 |
839.400 |
|
(b) Trade payables |
485.000 |
344.400 |
302.200 |
|
(c) Other current
liabilities |
183.300 |
377.500 |
241.000 |
|
(d) Short-term provisions |
75.900 |
71.500 |
68.100 |
|
Total Current Liabilities (4) |
1784.400 |
1817.400 |
1450.700 |
|
|
|
|
|
|
TOTAL |
5059.500 |
4587.600 |
3811.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2516.100 |
2247.700 |
1877.800 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
298.400 |
165.200 |
158.400 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
7.000 |
7.000 |
10.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
47.100 |
63.300 |
42.200 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
2868.600 |
2483.200 |
2088.400 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1383.000 |
1274.400 |
1047.200 |
|
(c) Trade receivables |
325.500 |
369.600 |
312.200 |
|
(d) Cash and cash
equivalents |
38.700 |
119.700 |
48.000 |
|
(e) Short-term loans and advances |
16.500 |
45.500 |
31.400 |
|
(f) Other current assets |
427.200 |
295.200 |
284.300 |
|
Total Current Assets |
2190.900 |
2104.400 |
1723.100 |
|
|
|
|
|
|
TOTAL |
5059.500 |
4587.600 |
3811.500 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6434.000 |
5565.300 |
4844.400 |
|
|
|
Other Income |
3.300 |
3.200 |
12.500 |
|
|
|
TOTAL (A) |
6437.300 |
5568.500 |
4856.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2290.300 |
2139.100 |
1765.400 |
|
|
|
Purchases of Stock-in-Trade |
1529.800 |
1324.100 |
1198.400 |
|
|
|
Changes in inventories of finished
goods work-in-progress and Stock-in-Trade |
(118.200) |
(181.300) |
(168.400) |
|
|
|
Employee benefits expense |
328.600 |
288.400 |
248.900 |
|
|
|
Other expenses |
1248.000 |
1120.000 |
964.300 |
|
|
|
Prior year adjustment –
Depreciation |
0.000 |
0.000 |
6.700 |
|
|
|
TOTAL (B) |
5278.500 |
4690.300 |
4015.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1158.800 |
878.200 |
841.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
315.700 |
272.000 |
174.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
843.100 |
606.200 |
667.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
199.200 |
152.700 |
131.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
643.900 |
453.500 |
536.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
209.500 |
100.400 |
144.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
434.400 |
353.100 |
391.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1170.400 |
911.200 |
613.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
45.000 |
40.000 |
40.000 |
|
|
|
Proposed Dividend- Equity Shares |
46.400 |
46.400 |
46.400 |
|
|
|
Dividend on Tax |
7.900 |
7.500 |
7.700 |
|
|
BALANCE CARRIED
TO THE B/S |
1505.500 |
1170.400 |
911.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
4282.900 |
3622.200 |
3123.800 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Stock-in-Trade |
421.500 |
410.800 |
515.800 |
|
|
|
Stores, Chemicals and Packing Materials |
95.200 |
23.500 |
15.200 |
|
|
|
Capital Goods |
235.000 |
149.100 |
131.900 |
|
|
TOTAL IMPORTS |
751.700 |
583.400 |
662.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.69 |
3.81 |
4.23 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.75
|
6.34 |
8.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.01
|
8.15 |
11.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.54
|
10.27 |
14.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.22 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.61
|
0.72 |
0.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.16 |
1.19 |
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 |
Yes |
|
8] |
No. of employees |
Yes |
|
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 |
no |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
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 |
Yes |
PERFORMANCE OF THE
COMPANY:
The Company for
the financial year ended on March 31, 2013 and the following highlights
evidence the performance during the said period:
• The revenue from
operations increased by 16%.
• The EBITDA increased
to Rs.1158.800 Millions as against Rs.878.200 Millions in the last year.
• Export increased
to Rs.4282.900 Millions from Rs.3622.200 Millions, showing growth of 18.24%.
• Revenue from
Domestic Market increased to Rs.1545.700 Millions from 1453.700 Millions
showing a growth of 6%.
• Profit before
tax increased to Rs.643.900 Millions from Rs.515.600 Millions, showing a growth
of 25%.
• Cash Profit
increased to Rs.633.600 Millions from Rs.505.800 Millions, showing increase of
25%.
• Net profit
increased to Rs.434.4000 Millions from Rs.353.100 Millions, showing increase of
24%.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure
and Developments
Leather Industry
has a special place in the economy of the country. The leather industry is
spread in different segments, namely, tanning and finishing, footwear and
footwear components, leather garments, leather goods including saddlery and
harness, etc.
Today, Leather
Industry is considered among major contributory in India’s growth factors. It
acts as catalyst to reduce Fiscal deficit of the country by emerging as one of
the biggest forex earner along with providing employment opportunities to
skilled / semi skilled young Indian population. The leather industry is an
employment generating sector, providing jobs to 2.5 million people, mostly from
the weaker sections of the society. The down stream industries of leather
sector such as shoes, garments and leather goods factories have provided large
employment opportunities for women. Woman employment is predominant in leather
products sector with about 30% share.
Government of
India, keeping in view the importance of Industry in India’s growth policy,
banned the export of raw or semi finished leather in 1991-92 and allowed only
finished leather for export resulting into conversion of tanner to product
maker thus creating actual creation of wealth both for Industry and producer.
During this year also, Finance Minister, while presenting Union Budget, reduced
duty on import of specified machineries for manufacture of leather and leather
goods from 7.5 % to 5% showing their sign of concern for further development of
leather Industry.
India achieved an
export performance close to US $ 5 billion mark for the first time in 2012-13
and hopeful to achieve positive growth this year too. The provisional data for
the period April-May 2013 vis-a-vis April-May 2012 available with Council for
Leather Exports (CLE) indicates that their export have performed quite well
showing a positive growth of about 9.5% during this period.
SEGMENT WISE
PERFORMANCE
The Company’s
business segments are primarily Shoe Division and Tannery Division. During the
year under review, the Shoe Division revenue was Rs.5573.100 Millions as
against Rs.4911.400 Millions in the previous year and Tannery Division revenue
was Rs.1695.300 Millions as against Rs.144.03 crores in the previous year.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER
(SRN) |
|
1 |
10331186 |
31/12/2011 |
400,000,000.00 |
PUNJAB NATIONAL BANK |
MALL ROAD, KANPUR, UTTAR PRADESH - 208001,
INDIA |
B30376313 |
|
2 |
10265230 |
17/01/2011 |
300,000,000.00 |
PUNJAB NATIONAL BANK |
MALL ROAD, KANPUR, UTTAR PRADESH - 208001,
INDIA |
B05597513 |
|
3 |
10149900 |
06/03/2009 |
100,000,000.00 |
PUNJAB NATIONAL BANK |
MALL ROAD,, KANPUR, UTTAR PRADESH -
208001, INDIA |
A59441006 |
|
4 |
10149906 |
06/03/2009 |
100,000,000.00 |
PUNJAB NATIONAL BANK |
MALL ROAD,, KANPUR, UTTAR PRADESH -
208001, INDIA |
A59441303 |
|
5 |
90271590 |
31/12/2011 * |
2,485,000,000.00 |
PUNJAB NATIONAL BANK |
MALL ROAD, KANPUR, UTTAR PRADESH - 208001,
INDIA |
B30374151 |
* Date of charge modification
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013
|
|
Quarter Ended on |
|
Particulars |
30.06.2013 |
|
|
(Un-audited) |
|
1. a) Net Sales/Income
from Operations |
1572.730 |
|
b) Other Operating Income |
0.016 |
|
Total |
1572.746 |
|
2. Expenditure |
|
|
a) Cost of Material
consumed |
578.480 |
|
b) Purchase of
stock-in-trade |
405.970 |
|
c) Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
(22.922) |
|
d) Employee benefit expense |
85.400 |
|
e) Exchange (gain) / loss |
(61.058) |
|
f) Depreciation and
amortisalicn expense |
55.122 |
|
g) Other expenditure |
334.913 |
|
Total |
1375.906 |
|
3. Profit from operations
before other income, finance costs and exceptional items (1-2) |
196.840 |
|
4. Other Income |
-- |
|
5. Profit from ordinary
activities before finance cost and exceptional items before Interest and
Exceptional Items (3+4) |
196.840 |
|
6. Finance costs |
77.910 |
|
7 Profit from ordinary activities after finance costs but
before exceptional items |
18.930 |
|
8 Exceptional Items |
-- |
|
9. Profit from Ordinary Activities before tax (7+8) |
118.930 |
|
10. Tax expenses |
40.550 |
|
11. Net Profit from Ordinary Activities after tax (9-10) |
78.380 |
|
12. Extraordinary Item (Net
of tax expense Rs.) |
-- |
|
13 Prior Year Adjustment |
-- |
|
14. Net Profit for the
period (11+12-13) |
78.380 |
|
15. Paid-up equity share
capital (Face Value of Rs.2/- per Share) |
185.412 |
|
16. Reserve excluding
Revaluation Reserves as
per Balance sheet of previous
accounting year) |
-- |
|
19. i Earning
Per Share (EPS) (of
Rs.2/- each)
(not annualised) |
|
|
a) Basic |
0.85 |
|
b) Diluted |
-- |
|
19 ii. Earnings Per Share
(after extraordinary items) (of Rs.2/- each)
(not annualised) |
|
|
a) Basic |
0.85 |
|
b) Diluted |
0.85 |
Part II
|
Particulars |
Quarter Ended on |
|
30.06.2013 |
|
|
PARTICULARS OF SHAREHOLDING |
|
|
Public Shareholding |
|
|
- Number of Shares |
31550019 |
|
- Percentage of shareholding |
34.03 |
|
Promoters and promoter group Shareholding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
- |
|
- Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
- |
|
- Percentage of shares (as a % of the total
share capital of the Company) |
- |
|
b) Non-encumbered |
|
|
- Number of Shares |
61155981 |
|
- Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100 |
|
- Percentage of shares (as a % of the total
share capital of the Company) |
65,97 |
|
PARTICULARS |
Quarter ended 30.06.2013 |
|
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
0 |
|
Received during the quarter |
8 |
|
Disposed of during the quarter |
8 |
|
Remaining unsolved at the end of the
quarter |
0 |
(Rs.
in millions)
|
Segment wise (primary) Revenue Results and
Capital Employed |
Quarter Ended on |
|
Particulars |
30.06.2013 |
|
(Un-audited) |
|
|
Segment Revenue |
|
|
Shoes |
1367.938 |
|
Leather |
476.017 |
|
Others |
0.016 |
|
Total |
1843.971 |
|
Less : Inter Seqment Revenue |
271.225 |
|
Income from Operations |
1572.746 |
|
Segment Results (Profit before interest & tax) |
|
|
Shoes |
259.822 |
|
Leather |
1.002 |
|
Others |
0.016 |
|
Total |
260.840 |
|
Less: Interest |
77.910 |
|
- Unallocable expenditure net of other
unallocable income |
64.000 |
|
Total Profit Before Tax |
118.930 |
|
Captital Employed (Segment assets less segment liabilities) |
|
|
Shoes |
1960.453 |
|
Leather |
426.360 |
|
Others |
19.972 |
|
Total Capital Employed in segments |
2406.785 |
Notes:
1.
The
above financial results have been reviewed and recommended by the Audit Committee
and subsequently approved by the Board of Directors at their meeting held
today.
2.
During
the quarter, the Company received 8 complaints, which all were resolved. As
such there was no unresolved investor complaint at the end of quarter.
3.
Figures
for the period have been regrouped wherever necessary in order to make them
comparable.
4. The Statutory Auditors have carried out a Limited Review of the above results.
FIXED ASSETS
Tangible Assets
·
Land Freehold
·
Land Leasehold
·
Buildings
·
Machinery
·
Effluent Treatment Plant
·
Tools and Shoe Lasts
·
Furniture and Fixtures and Electrical Installation
·
Vehicles
·
Computers
PRESS RELEASES:
TURNOVER UP BY 22% - PBT UP BY 25%
The Board of Directors of Mirza International Limited in its meeting held today has taken on record the un-audited financial results of the Company for the second quarter and half year ended on 30th September, 2013. Despite adverse conditions as prevailing in the overseas market, the Company recorded a Gross Income of Rs. 2014.200 Millions during the quarter as against Rs. 1653.200 Millions during the corresponding period in the previous year and thus showing a growth of 22%.
The Gross Revenue for the half year ended on 30th September, 2013 was achieved at Rs. 3648.100 Millions as against Rs. 3069.600 Millions and thus showing an upward growth of about 19%. Thus showing the increased customers acceptance of Company's products in the market despite adverse market conditions prevailing in European Market.
Despite increased prices of major input items viz. Raw Hide and Chemicals and also incresed interest cost on account of ongoing expansion plan, the Profit Before Tax for the quarter ended 30th September, 2013 were at Rs. 251.900 Millions as against Rs. 201.400 Millions for the same period of corresponding year, showing an increase of 25%. It reflects the overall efficient management of operations of the Company.
Also the Earning per Share for the quarter has been Rs. 1.79 as compared to Rs. 1.45 for the corresponding period of previous year and thus showing an increase of 23%.
MIL, a leading Footwear manufacturing Company having reknowned Brands of REDTAPE, OAKTRACK and OAKRIDGE is maintaining a consistent growth record, is confident to achieve heights in terms of Turnover and Profitability in Coming days too.
ANNUAL GENERAL MEETING OF MIRZA INTERNATIONAL LIMITED.
COMPANY DECLARED 25% DIVIDEND
The 34th Annual General Meeting of the Company was held today i.e. 28th September, 2013 at the Auditorium of Council for Leather Exports, HBTI Campus, Nawab Ganj, Kanpur.
Mr. Irshad Mirza, Chairman of the Company addressed the shareholders and other invitees present at the meeting. In his speech, the chairman pointed out that the Year 2012-13 for your Company has been marked with a number of significant achievements. Your Company has earned highest ever Turnover of Rs 6440.000 Millions during 2012-13 against Rs 557.000 Millions during 2011-12, showing an upward growth of 15.7%. Company has also earned highest ever Profit after Tax (PAT) of Rs 434.400 C Millions rores during the year 2012-13 as against Rs 35.31 during 2011-12, thus, showing a jump of 23%.
Shareholders approved the Dividend @ 25% on equity shares as recommended by the Board of Directors of the Company for the year ended 31st March, 2013. The dividend declared demonstrated the managements’ intention to keep the shareholders’ interest at heart.
At the end of his speech, Mr. Irshad Mirza whole-heartedly thanked the shareholders of the Company for their valuable and unshakable support over the years. He also thanked the Bankers of the Company, Central Government, State Government and Council for Leather Exports for their valuable support and cooperation.
In the meeting, besides the shareholders, Managing Director of the Company Mr. Rashid Mirza, Directors of the company viz. Mr. Shahid Mirza, Mr. Tasneef Mirza, Mr. Q.N. Salam, Mr. P.N. Kapoor, Mr. Sudhindra Jain, Mr. N.P. Upadhyay and Mr. Islamul Haq were present. The meeting was also attended by the auditors and officers and employees of the company.
NET PROFIT AFTER TAX INCREASED BY 68%
The Board of Directors of Mirza International Limited in its meeting held today has taken on record the unaudited financial results of the Company for the Quarter ended on 30th June, 2013. The Company recorded a turnover of Rs.1572.700 Millions during the Quarter as against Rs. 1419.600 Millions recorded during the corresponding period of previous year showing an upward growth of about 11%. The Profit before tax were Rs. 118.900 Millions as against Rs. 70.000 Millions during the corresponding period of previous year. After providing for tax of Rs. 40.500 Millions, the net profit for the Quarter ending 30th June, 2013 were Rs. 78.400 Millions as against Rs. 46.700 Millions during the corresponding period of previous year.
Despite lingering recessionary trends in European Countries and political uncertainties in Overseas, Company could achieve a growth of 11% in its Turnover. However, higher commodities prices, high inflation ingeneral and higher interest rates are the factors which have put a strain in Company's margin. The Management is consistently adopting the measures to control costs in all areas to maximise the profit of the Company.
Company is hopeful to improve its profitablility by adopting cost saving measures and also by improving further its working efficiencies.
The Board of Directors have already recommended a dividend of Rs. 0.50 (25%) per equity share of Rs. 2/- each subject to approval of shareholders of the Company in the ensuing Annual General Meeting.
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 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.61.33 |
|
|
1 |
Rs.101.79 |
|
Euro |
1 |
Rs.84.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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.