MIRA
INFORM REPORT
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Report Date : |
17.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
R R SYSTEMS PRIVATE LIMITED |
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Registered Office : |
103 Bajaj House, 97 Nehru Place, New Delhi 110 019 |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
29.01.1999 |
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Com. Reg. No.: |
11-98142 |
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CIN No.: [Company
Identification No.] |
U30007DL1999PTC098142 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Distributor and Supplier of Computer Hardware & Peripherals |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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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Maximum Credit Limit : |
USD
5000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
103 Bajaj House, 97 Nehru Place, New Delhi 110 019 |
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Tel. No.: |
91-11-26224857, 26293126, 26293125/ 26224356 |
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Mobile No.: |
91-9810168944 |
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Fax No.: |
91-11-26293126, 26293127 |
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Area : |
500 Sq.ft. |
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Location : |
Owned (Commercial) |
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Head
Office : |
103, Bajaj House,
97, Nehru Place, New Delhi – 110 019, INDIA. |
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Tel.
No.: |
91-11-26293125 / 26293126 |
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Fax
No.: |
91-11-26293127 |
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Branches
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Located at:- Jaipur, Rajasthan |
SOLE PROPRIETOR/PARTNERS/DIRECTORS
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Name : |
Mr Bharat Bhushan |
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Designation : |
Director |
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Address : |
141/11 Pratap Nagar, Gurgaon, Haryana |
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Date of Birth/Age : |
15/02/1958 |
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Date of Appointment : |
29/01/1999 |
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Name : |
Mr Kamal Singh Chandalia |
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Designation : |
Director |
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Address : |
B-2/2, Rana Pratap Bagh, Delhi |
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Date of Appointment : |
29/01/1999 |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Mr Bharat Bhushan |
10 |
0.25 |
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Mr Kamal Singh Chandalia |
2790 |
69.75 |
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Mr. Nishant Arya |
1200 |
30.00 |
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Total |
4000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Distributor and Supplier of Computer Hardware & Peripherals |
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Products : |
Ø CPUs Ø Hard Disks Ø Printers Ø DVD Writers Ø Digital Cameras Ø Monitors |
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Imports from : |
Japan, Singapore and China |
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Terms : |
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Selling : |
Cash and Credit (30 days) |
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Purchasing : |
Cash and Credit (7 days) |
GENERAL
INFORMATION
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Customers : |
Wholesalers and Retailers |
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No. of Employees : |
20 |
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Bankers : |
Ø Indian Bank, Nehru Place, New Delhi – 110 019, India Ø Corporation Bank, Nehru Place, New Delhi – 110 019, India |
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Facilities : |
Credit limits worth Rs.2.000 million |
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Banking Relations : |
Satisfactory |
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Auditors : |
Desh Raj & Company, Chartered Accountants (Mr Desh Raj, Membership No. 83914) |
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Address : |
39-A/10, Second Floor, Jawala Heri Market, Paschim Vihar, New Delhi 110 063 |
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Tel. No.: |
91-11-25278817 |
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Mobile No.: |
91-11-25266425 |
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Fax No.: |
91-9811049911 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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4000 |
Equity
Shares |
Rs.100/- each |
Rs.0.400 |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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4000 |
Equity
Shares |
Rs.100/- each |
Rs.0.400 |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.400 |
0.400 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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1.343 |
1.131 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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1.743 |
1.531 |
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LOAN FUNDS |
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1] Secured Loans |
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0.122 |
0.395 |
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2] Unsecured Loans |
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1.193 |
1.332 |
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TOTAL BORROWING |
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1.315 |
1.727 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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3.058 |
3.258 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.559 |
1.859 |
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Capital work-in-progress |
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INVESTMENT |
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0.119 |
0.111 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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7.658 |
5.296 |
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Sundry Debtors |
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17.230 |
16.551 |
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Cash & Bank Balances |
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0.984 |
0.489 |
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Other Current Assets |
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0.058 |
0.062 |
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Loans & Advances |
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0.114 |
0.017 |
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Security Deposit |
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0.023 |
0.000 |
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Total Current Assets |
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26.067 |
22.415 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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24.687 |
21.129 |
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Provisions |
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Total Current Liabilities |
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24.687 |
21.129 |
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Net Current Assets |
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1.380 |
1.286 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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Preliminary Expenses |
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0.000 |
0.002 |
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TOTAL |
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3.058 |
3.258 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other income] |
275.670 |
287.313 |
312.676 |
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Profit/(Loss)
Before Tax |
0.314 |
0.335 |
3.515 |
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Provision
for Taxation |
0.102 |
0.101 |
0.125 |
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Profit/(Loss)
After Tax |
0.212 |
0.234 |
3.390 |
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Total
Expenditure |
277.268 |
285.897 |
309.161 |
KEY
RATIOS
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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PAT / Total Income |
0.08 |
0.08 |
1.08 |
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Net Profit Margin |
0.11 |
0.12 |
1.12 |
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Return on Total Assets |
0.76 |
0.96 |
NA |
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Return on Investment (ROI) |
12.17 |
15.31 |
NA |
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Current Ratio |
1.06 |
1.06 |
NA |
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Quick Ratio |
0.75 |
0.81 |
NA |
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Debt Equity Ratio |
0.75 |
1.13 |
NA |
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Current Liabilities/Networth |
14.16 |
13.80 |
NA |
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Fixed Asset / Networth |
0.89 |
1.21 |
NA |
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Average Collection Days |
22.83 |
21.03 |
NA |
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Account Receivables Turnover |
15.99 |
17.35 |
NA |
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Inventory Turnover |
35.97 |
54.22 |
NA |
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Asset Turnover |
176.67 |
154.51 |
NA |
LOCAL AGENCY
FURTHER INFORMATION
The subject is an Authorised Distributor for the following companies :
Ø Intel
Ø Samsung
Ø LG Electronics India Pvt Ltd
Ø TVS Electronics
Ø HP India
Company’s fixed assets include Office Building, Car and Cell Phone.
BUSINESS
Subject is engaged in distributing and trading of all kinds of Computer and Channel provider of IT Products and Hardware Solutions.
Subject deals with Laser Printers, Scanners, Key Boards, CD/DVD Roms, Hard Disks, Monitors and UPS.
The company is also into data recovery from corrupted hard disks and consulting for systems integration, network designing and structured cabling. Revenues and derived entirely from the private sector with emphasis on manufacturing, education and services.
The company is an authorised dealer for Intel, LG, Samsung and Seagate.
Subject does not import or export.
Industry
Overview :
The Indian economy is
in the booming mode today driven by the IT Revolution in the country. Its GDP
growth has touched 7 per cent. There is no sector, today, which is not being
influenced by IT. The Indian IT market per se has touched $25 billion mark by
2004, out of which The domestic market accounts for $8 billion and export
market $16 billion. According to IDC, the domestic market has grown more than
22 per cent over the previous year. The IT export market has grown 32 per cent
in the same period. Sectors like IT Services, IT enabled Services and BPO has
actually given a push to the export market and taken India to greater heights.
IDC also predicts that the growth ratio will remain constant till 2009, but
there is a feeling that this market would grow much faster because the biggest
buyer the government sector has really been active. The Department of
Information Technology, Government of India has taken some historic steps like
announcement of State Wide Area Network (SWAN) up to the block level to provide
connectivity for e-governance and has also set up NIXI (National Internet
Exchange and Indian Domain Name) in order to control bandwidth. The SoHo and
SME markets are making rapid strides in terms of IT implementation. Vendors are
mulling over strategies to capture the rural markets. The population has
touched more than a billion, and there is a flow of FDI to capture this huge
market. Top electronics manufacturers have already opened their outlets here.
press
clipping
This Delhi based channel partner showed revenues of Rs.294.900 millions in Financial Year 2001-02, a decrease a 29%. RR Systems started operations in 1999 as a distributor and channel provider of IT products and hardware solutions. The firm is also into data recovery from corrupted hard disks and consulting for systems integration, network designing and structured cabling. Revenues are derived entirely from the private sector, with emphasis on manufacturing, education and services.
Laser-Scanners, Keyboards, CD/DVD Roms, hard disks, monitors and UPS. After a tumultuous year last fiscal, which saw a negative growth, the company bounced back to register a positive growth and managed to hit the black.
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
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Currency |
Unit
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Indian Rupees |
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US
Dollar |
1 |
Rs.44.27 |
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UK
Pound |
1 |
Rs.86.87 |
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Euro |
1 |
Rs.57.27 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--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 |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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