MIRA
INFORM REPORT
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Report Date : |
19.01.2007 |
IDENTIFICATION DETAILS
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Name : |
PARK
ELECTRONIK |
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Registered Office : |
406, 4th
Floor, 56 Eros Apartment, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1993 |
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Legal Form : |
Sole
Proprietory Concern |
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Line of Business : |
Distributor
and Supplier of Computers, Computer Hardware and Accessories. |
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 : |
USD50000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established concern having satisfactory track. Trade relations are
fair. Payments are usually correct and as per commitments. The
concern can be considered normal for business dealings at usual trade term
and conditions. |
LOCATIONS
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Registered Office : |
406, 4th
Floor, 56 Eros Apartment, |
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Tel. No.: |
91-11-26293749
/ 26293946 / 66606550 / 20062910 |
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Mobile No.: |
91-9810024028 |
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Fax No.: |
91-11-26416376 |
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E-Mail : |
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Website : |
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Area : |
1200
Sq. ft approx |
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Location : |
Owned-Commercial |
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Branch
Office/ Showroom : |
J -
44, Sector – 18, Near Center Stage Mall, Noida – 201303, Uttar Pradesh |
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Contact
Person: |
Mr
Suraj Chopra |
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Tel.
No.: |
91-120-25125046
/ 25125047 / 25125048 |
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Mobile
No.: |
91-9818774466 |
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Fax No.: |
91-120-25125047 |
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Location: |
Rented-Commercial |
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Branch
Office : |
Kurukshetra,
Jaipur, Dehradun and Panipat |
SOLE PROPRIETOR
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Name : |
Mr Ajay
Kumar |
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Designation : |
Proprietor |
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Date of Birth/Age : |
48
years |
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Qualification : |
BE |
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Experience : |
24
years |
KEY EXECUTIVES
|
Name
: |
Mr
Bansi |
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Designation
: |
Executive
Admin and Accounts |
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Mobile
No.: |
91-9818775500 |
BUSINESS DETAILS
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Line of Business : |
Distributor
and Supplier of Computers, Computer Hardware and Accessories. |
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Products : |
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Brand Names : |
Subject
is an authorised distributor for the following companies
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Exports to : |
Subject
does not export and supplies in the domestic market to retailers and
corporates |
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Imports from : |
Subject
does not import and purchased computers and hardware, computer peripherals
from the domestic market. |
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Terms : |
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Selling : |
Cash
against Delivery |
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Purchasing : |
On
Credit : 15 days |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
52 |
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Bankers : |
Oriental
Bank of Commerce, ICICI
Bank Limited, |
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Facilities : |
Subject
is reportedly enjoying Cash Credit facilities, Bank Guarantee Facilities,
Over Draft facilities from Oriental Bank of Commerce. |
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Auditors : |
Gupta
and Associates Chartered
Accountants |
CAPITAL STRUCTURE
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Capital
Investment : |
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Owned : |
Rs
12.500 Millions |
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Borrowed : |
N.A. |
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Total : |
Rs
12.500 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
750.000 |
600.000 |
460.000 |
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Profit/Loss for the year |
9.500 |
8.525 |
6.550 |
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Provision for Taxation |
0.600 |
0.675 |
0.550 |
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Profit/(Loss) After Tax |
8.900 |
7.850 |
6.000 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
|
1.19
|
1.31 |
1.30 |
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Net
Profit Margin(PBT/Sales) |
|
1.27
|
1.42 |
1.42 |
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Return
on Investment (ROI)(PBT/Networth) |
|
0.76
|
0.89 |
0.87 |
LOCAL AGENCY FURTHER INFORMATION
Mr Ajay
Kumar, BE, Proprietor and CEO of the Park Electronic Group is a professionally
qualified engineer and having experienced of around 24 years in Computer
Hardware industry.
Industry Overview
Consequent shift has been from monopoly of Government as service
provider to private entry in telecom to promote competition and establishing a
neutral regulatory agency. The essence of the convergence spirit and the
vitality of changes have led to lowering of tariffs, plentiful availability of
bandwidth at increasingly lower cost, competition and growth in technology.
Sales of Personal Computers (PC) crossed 3.6 million units during the
year 2004-05, registering a growth of 20%. Sales in 2005-06 are expected to
cross 4.7 million units. The growth in PC sales is largely attributed to
increased IT consumption by Industry verticals and corporate sectors such as
Telecom, Banking and Financial Services, Manufacturing and IT enabled services.
Apart from these traditional sectors, higher consumption is also being
witnessed in SMEs, IT training institutes and other computer centric small
enterprises. In addition, the trend of increased PC purchase in households,
smaller towns and cities is continuing. Aggressive pricing by the PC vendors
has also helped improve the PC penetration, especially in the households and
the SME segments. The Department has conducted a study on ‘Improving PC
penetration in the country’. The report envisages a seven-fold growth in the
domestic IT market by 2008 with annual PC sales at 28 million.
The software and services industry continue to be the dominating factor
in the overall growth of the Indian industry. In 2004-05, the Indian software
and services industry exports witnessed a healthy growth, with total exports
reaching Rs. 801800.000 Millions (US$ 17.7 billion), an increase of 37% over
the previous financial year. This segment will continue to show a robust growth
and the total value of software and services export is estimated at Rs. 1032000.000
Millions(US$ 23.4 billion) in 2005-06, an increase of 29 per cent in Rupee
terms and 32 per cent in dollar terms. The Business Process Outsourcing
(ITES-BPO) sector has emerged as a key driver of growth for the Indian software
and services Industry. The ITES-BPO industry is likely to grow by about 37% in
2005-06 to reach US$ 6.3 billion. In 2004-05, the Indian ITES-BPO industry grew
by 48% to US$ 4.6 billion.
The Desktop PC market grossed 2.340 million units registering a growth
of 36% in the first half of 2005-06 over the same period last fiscal. With
sound macroeconomic condition and buoyant buying sentiment in the market, PC
sales are expected to touch 4.700 million units during the year 2005-06. A
similar growth trend was also witnessed in all other associated peripherals.
FURTHER
INFORMATION
Established in 1993 the subject is engaged in the business of Distributor & Supplier of Computers Desktop, Laptop and Hardware & Accessories and authorised Distributor of Microsoft Software
Park Electronik is one of the leading
distributors of computer hardware & accessories, Microsoft Software in
During the year 2005 the subject received
distribution rights for Microsoft hardware and Sony. It was appointed as the
regional distributor for AOC brand CRT and TFT monitors in north
Taiwan-based TPV Technology, which owns AOC
brand, is already present in
The distributor registered a growth of 30% in FY 2004-05, clocking a turnover of Rs 600.000 Millions. Ajaya attributes this growth to a good mix of product portfolio, which includes push as well as pull products. The new branches will begin operations with a set of pull products and will later expand to include premium push products.
In its bid to better equip its 18-member sales team, Park Electronik has engaged itself towards providing regular training to its employees.
Park Electronik, a division of Park Network, has been appointed as regional distributor for TPV Technology Limited's AOC brand CRT and TFT monitors for the entire northern zone.
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PARK ELECTRONIK: A
consistent performer |
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With a high market
credibility and full commitment towards its customers, Park Electronik is one
of the few consistent distribution-focused companies in the northern part of
the country. |
Some impressive highlights at Park for 2004-05 include bagging distribution
rights for Microsoft hardware and Sony. It was recently appointed as the
regional distributor for AOC brand CRT and TFT monitors in north
the NCR region around
Taiwan-based TPV Technology, which owns AOC brand, is already present in
The distributor registered a growth of 30% in FY 2004-05, clocking a turnover of Rs 600.000 Millions. Ajaya attributes this growth to a good mix of product portfolio, which includes push as well as pull products. The new branches will begin operations with a set of pull products and will later expand to include premium push products.
In its bid to better equip its 18-member sales team, Park Electronik has engaged itself towards providing regular training to its employees
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts,
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.21 |
|
|
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.39 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
--- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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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 |
|
54 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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