MIRA INFORM REPORT
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Report Date : |
10.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN HAIR EXPORTS |
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Registered
Office : |
No.146 B, A Block, 1st Street, Kamaraj School
Road, Thanikachallam Nagar, Chennai – 600 110, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Year of
Establishment : |
2001 |
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Capital
Investment / Paid-up Capital : |
Not Available |
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Legal Form : |
Sole Proprietary Concern |
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Line of Business
: |
Manufacturer and Exporter of Human Hair. |
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No. of Employees
: |
6 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (43) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 an
established proprietary concern having a satisfactory track record. Trade relations
are fair. Business is active. Payment terms are reported as usually correct. The concern can
be considered 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
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 |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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. Rajendran |
|
Designation : |
Office Assistant with inputs from Mr. Syed Shamsuddin |
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Contact No.: |
91-9940247966/ 9176456505 |
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Date : |
03.03.2014 |
LOCATIONS
|
Registered Office/ Factory : |
No.146 B, A Block, 1st Street, Kamaraj
School Road, Thanikachallam Nagar, Chennai – 600 110, Tamilnadu, India |
|
Tel. No.: |
91-44-26710731 |
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Mobile No.: |
91-9940247966/ 9176456505 (Mr. Rajendran) |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
SOLE PROPRIETOR
|
Name : |
Mr. Syed Shamsuddin |
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Designation : |
Proprietor |
KEY EXECUTIVES
|
Name : |
Mr. Rajendran |
|
Designation : |
Office Assistant with inputs from Mr. Syed Shamsuddin |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Human Hair. |
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Products : |
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Terms : |
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Selling : |
L/C and Credit (30 days) |
GENERAL INFORMATION
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Customers : |
Wholesalers, Retailers and End Users |
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No. of Employees : |
6 (Approximately) |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
Not Available |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Not Available |
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Borrowed : |
Not Available |
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Total : |
Not Available |
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
Particulars |
|
|
31.03.2013 |
|
Sales Turnover (Approximately) |
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20.000 |
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The above information has been parted by Mr. Rajendran.
Note : Sole Proprietary and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
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2) Locality of the firm |
Yes |
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3) Constitutions of the firm |
Yes |
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4) Premises details |
No |
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5) Type of Business |
Yes |
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6) Line of Business |
Yes |
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7) Promoter’s background |
No |
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8) No. of employees |
Yes |
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9) Name of person contacted |
Yes |
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10) Designation of contact person |
Yes |
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11) Turnover of firm for last one year |
Yes |
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12) Profitability for last three years |
No |
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13) Reasons for variation <> 20% |
-- |
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14) Estimation for coming financial year |
No |
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15) Capital in the business |
No |
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16) Details of sister concerns |
No |
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17) Major suppliers |
No |
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18) Major customers |
No |
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19) Payments terms |
Yes |
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20) Export / Import details (if applicable) |
No |
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21) Market information |
-- |
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22) Litigations that the firm / promoter
involved in |
-- |
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23) Banking Details |
Yes |
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24) Banking facility details |
No |
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25) Conduct of the banking account |
-- |
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26) Buyer visit details |
-- |
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27) Financials, if provided |
Yes |
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28) Incorporation details, if applicable |
No |
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29) Last accounts filed at ROC |
No |
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30) Major Shareholders, if available |
No |
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31)
Date of Birth of Proprietor/Partner/Director, if available |
No |
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32)
PAN of Proprietor/Partner/Director, if available |
No |
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33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
No |
WEBSITE DETAILS:
NEWS:
HUMAN HAIR BEING SMUGGLED
OUT, HURTING EXPORT EARNINGS
Exporters ask government to take deterrent action, since livelihoods are
involved
December 16, 2013
Indian exporters of human hair, a majority of them small enterprises, are
facing a peculiar challenge - raw human hair is allegedly being smuggled across
India's land borders to countries like Myanmar, thereby hurting potential
foreign exchange earnings.
Exporters of raw human hair - collected mainly from temples and households,
largely from Andhra Pradesh and Tamil Nadu, but also from other parts of the
country - cater to the beauty market in the Western world.
The industry complains that raw hair, a household waste product collected by
the industry for processing and selling, is being collected by smugglers from
Myanmar and transported in trucks through the borders.
"The livelihood of millions of Indians depends on the collection,
processing and sale of human hair. Besides, it also brings foreign exchange
earnings. Smuggling is a threat to both," said Benjamin Cherian, president
of the All India Human Hair Exporters Association, and managing director of Raj
Hair International Private Limited.
The industry has requested the government to take strict action against
smugglers, including putting regulations in place to prohibit transporting of
raw hair through the borders.
Human hair export from India is a Rs.25000.000 millions business (about $400
million at the current exchange rate), and the country is a key player in the global
beauty industry. China is a much bigger player, with hair exports of $5
billion. However, Indian hair is considered more suitable for Caucasian hair,
and this has increased its acceptability. Even the Chinese industry mixes some
Indian hair to improve the quality of the hair it sells, said Cherian.
Two types of hair are collected in India. One is Remy hair (the highest grade
of human hair, a preferred choice for hairpieces and wigs because it creates a
natural look) collected from temples where pilgrims tonsure their hair as part
of a religious vow. The Tirumala Tirupathi Devasthanam (TTD) is where the most
such tonsuring happens. The temple authorities classify it and sell it on the
basis of global tenders through the Metal Scrap Trading Corporation, earning
Rs.3000.000-4000.000 millions a year, according to industry sources.
The second kind is non-Remy hair - household waste collected by gypsy groups or
nomads from villages, who sell it to dealers in hair, who in turn sell it to
hair export firms. The latter process it, make it reusable and export it to the
West, where it is used to make wigs and hairpieces. Several lakhs of people
work in the collection, stocking, and processing of hair.
The price of Remy hair depends mainly on the length and strength of the hair.
The price of Remy hair sourced from TTD is as high as Rs.24000 a kg.
Considering its lack of availability, Remy hair comprises only 15 per cent of
total exports, the remainder being non-Remy hair. The price of non-Remy hair is
Rs.3000-3500 a kg, on average.
Smugglers deploy people to collect raw non-Remy hair from rural areas, export
it in bulk through the borders, and have it processed in Myanmar. The
collectors get a 20-30 per cent commission. The hair is transported mainly to
China where wigs and hairpieces are made, the industry alleges.
By a rough estimate around 3,000-4,000 kgs of raw hair, worth Rs.12.000
millions at the current market price, is smuggled through the borders every
day. Bundles of hair cannot go unnoticed by the authorities, because of their
sheer volume, said an industry source.
To ramp up growth, the industry has revived its association, which is now
looking to improve value addition in export products and make it a
Rs.50000.000-70000.000 millions business in the next five years. It can export
wigs and hairpieces as value-added products, to increase foreign exchange
earnings, said Cherian.
HUMAN HAIR EXPORTER CRIES FOUL
Visakhapatnam, July 26, 2013:
The export of human hair has taken a beating in
recent years, as unscrupulous elements from countries such as China and Myanmar
are resorting to unfair trade practices and the Government of India is unable
to do anything to control them, according to K. K. Gupta of Srinivasa Hair
Exports, a leading exporter from Andhra Pradesh.
He made the complaint at an interactive session
organised by the Director-General of Foreign Trade (DGFT) here on Friday to
promote exports and reduce trade deficit. Contrary to popular belief, he said,
“most of the human hair is collected from villages. We get only 10 per cent of
our raw material from temples. When women comb their hair, there is hair fall.
It is collected in villages and we get it through agents. We process it and
export it.”
Of late, he complained that agents from China,
Myanmar and other countries have been penetrating the villages and get human
hair by paying hawala money to the agents. “They then take it to the border and
smuggle it to countries such as China, Myanmar and others. As a result, honest
exporters are at the receiving end. “Hair exports went down by
Rs.400.000-500.000 millions last year due to this. The Government of India should take steps to check
it,” he pleaded.
Further, he said these merchants evade import duty
in China and therefore the importers in that country buy from these elements
rather than placing orders with established Indian exporters.
In response, M. Ponnuswamy, the Commissioner of
Central Excise and Customs, told him that the border authorities would be
alerted and steps taken to check underinvoicing.
Kakinada port
Prasad, a rice exporter, complained that the old
port of Kakinada from where the bulk of rice exports take place, is in a sorry
shape as there are no proper approach roads to the port and no adequate number of
jetties. Infrastructure at the port should be strengthened to improve rice
exports, he pleaded.
Padmanabhan of the Seafood Exporters Association of
India said hygiene should be maintained at the Visakhapatnam fishing harbour and
the uncertainty over shifting of the harbour should also be ended for taking up
long-term measures to improve the harbour. Otherwise, it would not be possible
to adhere to the stringent norms imposed by the European Union. Seafood exports
would suffer, he said and added that more export incentives should be given to
the trade.
In response, G. V. L Satya Kumar, the Visakhapatnam
port Chairman, said the shifting of the Visakhapatnam fishing harbour to
Bheemunipatnam was inevitable sooner or later, and that the Visakhapatnam port
will co-operate with the industry to take up all required steps for export
promotion.
A HAIRY BUSINESS
THAT IS BOOMING INTO A MILLION DOLLAR INDUSTRY
December 30, 2013
It
is a hairy business, but it is not dirty; rather it is being seen as the
fastest growing export from the Southern Indian
state of Andhra Pradesh. This bizarre export of human hair to the US, China,
Europe and the Middle East is fasting booming into a Rs.15000.000 millions
($241.857 million) industry.
The
economy may be in a slump but the export of human hair is booming. As per rough
estimates, over 3,000 tonnes of hair has been shipped out of the Visakhapatnam
Port this year.
The
hair trade is swiftly turning into a growing industry, and now even the famous
Hindu temples of the South, wherein people often shave off their hair as mark
of their respect to the deity, are getting into the business. The famous Andhra
Varahalakshmi Nrusimhaswami Temple in Simhachalam are coming out with e-auction
global tenders, that will allow buyers from international markets to buy human
hair that is offered at the hill shrine by lakhs of devotees.
The
Tirumala Tirupati Devasthanam that has a daily visitor tally of about 65,000
people has also taken up the e-auctioning of human hair through global tenders.
|
|
As
per estimates, a ton of human hair approximately costs Rs.5.000 millions in the
international market. The demand is high for virgin remy hair (quality hair) in
European countries, such as Switzerland, Italy and France, while the non-remy
is sent to China.
The
virgin remy hair was earlier collected from hair salons but as people
increasingly subjected their hair to various treatments, such as colouring,
straightening, waving or curling, the quality has diminished. And that explains
the mad rush to the templed, where it is easy to find tresses that have not
been teased and tangled too much.
HAIR TRADERS GO ON A TEMPLE TRAIL TO ADD TO RS.25000.000 MILLIONS HAIR TRADE MARKET
October 12, 2013
KOLKATA: The next time you're at the salon, it may
be worth remembering that the trimmings ending up on the floor will be swept up
and sold, becoming part of a business that's worth 25000.000 millions. Yes, that's how much India's annual hair harvest is worth. And business
is booming, according to KS Prithviraj, president of the Indian Human Hair
Exporters Welfare Association, although the estimates vary a little. He puts
annual growth at anywhere between 10% and 30%.
But if you've subjected your hair to various
treatments such as colouring, straightening, waving or curling, then be advised
that it isn't really regarded as the best quality stuff. That status is given
to tresses that haven't been teased and tangled too much and is known as virgin
remy hair in the trade.
This is why the cream of the crop is no longer
coming from the sweepings at hairdressers but from temples. To the extent that
the Tirumala Tirupati Devasthanams holds an e-auction for the hair tonsured off
devotees. It raised 740.000 millions from the sale of hair in
September, albeit down from the high of 1300.000 millions in June this year, when there was a surge in contributions. Talk to the
hair people about the shift in the market over the past few years and they have
some interesting sociological commentary to offer.
For instance, women in south India used to maintain
their hair with minimal intervention, according to them. This is changing.
"These days it is difficult to get good
quality black remy hair in the salons. Those who go to the upmarket salons
generally experiment with hair to give different looks. So the hair exporters
have to increase their dependence on temple hair," said N Nandakumar, who
runs hair trader Bhavani Enterprises. There is a premium on the hair of women
who live in the rural areas, he said.
"As village women don't dye, bleach and streak
their hair, even their comb waste is sometimes used," he said.
The key to good hair health is the state of the
cuticle, which forms the outermost covering. Virgin remy hair will have this
sheath of overlapping cells perfectly aligned, preventing the strands from
tangling and keeping them soft and shiny. This is what works best for hair
extensions and wigs, providing a natural appearance. Temples in Tamilnadu and
Andhra Pradesh are the major sourcing centres for such hair, fetching $200 to
$1,000 a kg depending on the length of the strands.
"We have increased our sourcing by 7-10% from
temples as salon hair is not suitable to meet the demand from high-value
customers in the US," said Shree Ram, owner of Uja Export and Import, a
hair trader. The procurement ratio of temple to salon hair now stands at 80:20,
having been 70:30 a few years back, said A Kishorekumar of Chennai-based Human
Hair India.
Temples such as Tiruchi Mariamman, Irkangudi
Mariamman, Tayamangalam Muthumariamman and Palani Murugan, besides Tirumala,
are the major sources for hair traders. The central government-owned MSTC
Limited has been conducting quarterly e-auctions of hair for the Tirumala
Tirupati Devasthanams (TTD) since September 2011.
"We are now planning to extend this facility
to the Simhachalam temple in Vijaywada," said A Rajamanickam, assistant
general manager of MSTC's Visakhapatnam branch.
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 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.60.99 |
|
|
1 |
Rs.102.07 |
|
Euro |
1 |
Rs.84.53 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
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 |
|
43 |
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.