MIRA
INFORM REPORT
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Report Date : |
06.06.2007 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE INFOCOMM
LIMITED |
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Registered Office : |
EO 1, Reliance Greens,
Village Motikhavdi, P. O. Digvijaynagaram, District Jamnagar-361140, |
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Country : |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
31.07.2002 |
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Com. Reg. No.: |
04-41035 |
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CIN No.: [Company Identification No.] |
U64202GJ2002PLC041035 |
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Legal Form : |
Closely held
public limited liability company. |
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Line of Business : |
Subject is a
provider of a complete range of Telecom services, covering mobile and fixed
line telephony including broadband, national and international long distance
services, data services and a wide range of value added services and applications. . The company has
license to offer telecom services in 20 circles under the unified access
License. In addition it has received the Letter of Intent for the J & K
circle. This has enabled the company to offer services across the length and
breadth of |
RATING & COMMENTS
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MIRA’s Rating
: |
Ba |
RATING
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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 450000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Reliance
Infocomm Limited is a new and closely held public limited company promoted by
Reliance Industries Limited, the flagship Company of the Reliance Group. The
Company has started its business activities only during the financial year
2003-2004. The company at present is caught in a controversy over equity
pattern and investment from promoter company. Various newspaper clippings
that are incorporated in this report will give a better idea about the
present status of the company. Trade relations are reported as fair. Payments
are reported as slow, but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
EO 1, Reliance Greens,
Village Motikhavdi, P. O. Digvijaynagaram, District Jamnagar-361140, |
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Tel. No.: |
91-288-2222900,
2224122 |
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Fax No.: |
91-288-2233883 |
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Location : |
Owned |
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Head Office : |
1 Block, 2nd
Floorm Dhirubhai Ambani, |
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Tel. No.: |
91-22-30375552,
30375534 |
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Fax No.: |
91-22-30375522 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office : |
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Tel No. : |
91-79-26582200 /
26586600 |
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Fax No. : |
91-79-26581623 /
26588800 |
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Email : |
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Website : |
DIRECTORS
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Name : |
Anil Dhirubhai
Ambani |
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Designation : |
Chairman and
Managing Director |
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Address : |
1 Block, 2nd
Floorm Dhirubhai Ambani, |
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Tel No.: |
91-22-30375552,
30375534 |
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E-Mail : |
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Date of
Birth/Age : |
4th
June 1959 |
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Qualification
: |
B. Sc (Chemical),
MBA from the wharton school, |
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Name : |
Prof. Jayraman
Ramchandran |
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Designation : |
Director |
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Name : |
Mr. Gautam B.
Doshi |
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Designation : |
Director |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Reliance
Communication Technologies Limited |
2205000000 |
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Reliance
Industries Limited |
315000000 |
7.57 |
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Kaizen Commercial
Private Limited |
30000000 |
0.72 |
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Greenwich Capital
Private Limited |
95600000 |
2.30 |
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Perigee Trading
Private Limited |
94700000 |
2.27 |
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Warbug Capital
Private Limited |
94700000 |
2.27 |
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Kaizen Commercial
Private Limited |
30000000 |
0.72 |
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Ganesh
Infrastructure Capital Fund |
30420000 |
0.76 |
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Satyam
Infrastructure Fund |
800000 |
0.02 |
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Fairever Trader
and Consultant Private Limited |
3400000 |
0.08 |
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Prena Auto
private Limited |
3300000 |
0.08 |
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Softnet Traders
and consultants private limited |
3300000 |
0.08 |
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Mr. Mukesh D.
Ambani |
500000000 |
12.00 |
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Other |
757280000 |
18.18 |
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Reliance Group
Companies (N A) -Preference |
1920000 |
100.00 |
BUSINESS DETAILS
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Line of
Business : |
Subject is a
provider of a complete range of Telecom services, covering mobile and fixed line
telephony including broadband, national and international long distance
services, data services and a wide range of value added services and applications. . The company has
license to offer telecom services in 20 circles under the unified access License.
In addition it has received the Letter of Intent for the J & K circle.
This has enabled the company to offer services across the length and breadth
of |
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Exports to : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS
|
Particulars |
Unit |
Projected By 31.12.2005 |
Actual Production |
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Provider of
Telephone other telecom related Services |
Subscriber Base |
40 Million |
11 Millions |
GENERAL INFORMATION
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Customers : |
v
Agriculture
Industry v
Buying
agents v
Clinics v
Construction
Companies v
Contractor
v
Corporate
Accounts v
Department
stores v
Distributor
v
Electronics
Industry v
Financial
Institution v
Government
Bodies v
Hospitals v
Hotels
v
Individuals
v
Manufacturers v
Property
developers v
Related
companies v
Retailers
v
Schools
v
Wholesalers
v
End-Users
v
Trading
Firms v
Transportation
Industry |
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No. of
Employees : |
235 |
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Bankers : |
v
State
Bank of v
Allahabad
Bank v
ICICI
Bank v
IDBI
Bank Limited v
Bank
of v
Corporation
Bank v
Union
Bank of v
Dena
Bank v
Punjab
National Bank v
HDFC Bank
Limited |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Chaturvedi and
Shah Chartered
Accountants 712-713, Tulsiani
Chambers, 212, Nariman Point, Mumbai-400021 |
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Tel. No. : |
91-22-22308500 |
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Fax No.: |
91-22-22872703,
22846585 |
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Parent
Company: |
v
Reliance
Communication Technologies Limited v
Anil
Dhirubhai Ambani Enterprises Group |
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Group
companies : |
v
Reliance
Energy Limited v
Reliance
Capital Mutual Fund Limited |
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Subsidiaries : |
v
Reliance
Gateway Network Limited v
Reliance
Info invest Limited v
Reliance
Infocomm Solutions v
Netizen
Gujarat Limited v
Netizen
Rajasthan Private Limited v
Reliance
Webstores Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000000 |
Equity Shares |
Re. 1.00/- each |
Rs. 10000.000 Millions |
|
5000000000 |
Preference Shares |
Re. 1.00 /- each |
Rs. 5000.000 Millions |
Issued, Subscribed
& Paid-up Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
4163500000 |
Equity Shares |
Re. 1.00/- each |
Rs. 4163.500 millions |
|
1920000000 |
Equity Shares |
Re. 1.00/- each |
Rs. 1920.000 Millions |
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Total |
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Rs. 6083.500 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
6083.500 |
5975.900 |
3470.200 |
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2] Share
Application Money |
0.000 |
0.000 |
81.700 |
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3] Reserves &
Surplus |
106747.600 |
110997.500 |
16879.800 |
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4] (Accumulated
Losses) |
0.000 |
(3903.000) |
(0.000) |
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NETWORTH
|
112831.100 |
113070.400 |
20431.700 |
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LOAN FUNDS |
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1] Secured Loans |
7693.900 |
24423.600 |
8360.000 |
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2] Unsecured
Loans |
0.000 |
0.000 |
8880.000 |
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TOTAL BORROWING
|
7693.900 |
24423.600 |
17240.000 |
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DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
120525.000 |
137494.000 |
37671.700 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
94121.700 |
106313.300 |
6484.700 |
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Capital work-in-progress
|
0.000 |
12259.100 |
54953.200 |
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Intangible
|
60327.300 |
0.000 |
0.000 |
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INVESTMENT
|
109.200 |
101.900 |
79.800 |
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DEFERREX TAX ASSETS
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
|
525.000
|
280.500 |
0.000 |
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Sundry Debtors
|
9551.800
|
8378.600 |
0.200 |
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Cash & Bank Balances
|
761.200
|
173.600 |
65.200 |
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Other Current Assets
|
0.000
|
0.000 |
0.000 |
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Loans & Advances
|
39468.400
|
37389.400 |
13547.600 |
Total Current Assets
|
50306.400
|
46222.100 |
13613.000 |
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Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
84339.600
|
27290.700 |
37441.400 |
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Provisions
|
0.000
|
145.300 |
58.700 |
Total Current Liabilities
|
84339.600
|
27436.000
|
37500.1 |
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Net Current Assets
|
34033.200
|
18786.100 |
(23887.100) |
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MISCELLANEOUS EXPENSES
|
0.000 |
33.600 |
41.100 |
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TOTAL
|
120525.000 |
137494.000 |
37671.700 |
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PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
55743.100 |
27069.600 |
1.200 |
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Profit/(Loss) Before Tax
|
466.100 |
1598.100 |
0.300 |
Provision for Taxation
|
43.600 |
5501.200 |
0.200 |
Profit/(Loss) After Tax
|
509.700 |
(3903.100) |
0.100 |
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Export Value
|
1084.400 |
1418.200 |
1222.600 |
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Import Value
|
16443.700 |
15025.500 |
28914.700 |
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Total Expenditure
|
55189.800 |
30972.700 |
1.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
0.91
|
(14.42) |
8.34 |
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Net Profit Margin
(PBT/Sales) |
(%) |
0.84
|
5.91 |
25.00 |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
0.32
|
1.05 |
0.01 |
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Return on Investment (ROI)
(PBT/Networth) |
|
0.00
|
0.02 |
0.00 |
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|
Debt Equity Ratio
(Total
Liability/Networth) |
|
0.82
|
0.46 |
2.84 |
|
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|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
0.60
|
1.69 |
0.37 |
LOCAL AGENCY FURTHER INFORMATION
Subject has taken of
over Basic Telecom Service from Reliance Telecom Limited as per the scheme of
arrangement approved by Hon. Gujarat High Court as per their order dated
16-05-2003. As per the scheme of arrangement with Reliance Infocomm Limited for
demerger of Basic Telephone Services Undertaking of Reliance Telecom Limited
and reduction of capital of RTL.
Nature of Restructuring
Amalgamation : As
per Scheme of Amalgamation approved by Hon. High Court of Gujarat vide their
order dated 16-12-2002
Subject (Co no 21441) transfer all their assets and
liabilities to Reliance Information and Communications limited with effect from
24-12-2002 and subsequently the name of company was changed to Reliance
Infocomm Limited with effect from 24-12-2002.
Demerger: Reliance
Infocomm Limited has taken of over Basic telecom Service from Reliance Telecom
Limited as per the scheme of arrangement approved by high Gujarat High Court as
per their order dated 16-05-2003.
As per the scheme
of arrangement with Reliance Infocomm Limited for demerger of Basic Telephone
Service Undertaking of Reliance Telecom Limited and reduction of capital of
RTL.
Acquisition : On 12th
January, 2004 Reliance Infocomm Limited acquired 100 % of the undersea cable
company. FLAG Telecom for US$ 211 millions through Reliance Gatway Net Limited
a wholly owned subsidiary of RIC. This acquisition provides RIC with an
international gateway to global markets . FLAG is international Wholesale
Telecommunication Service Provider.
The FLAG
acquisition also make RIC the only
Bifurcation of
Reliance Group. RIC become part of Anil Ambani Enterprises Group with effect
from 26-06-2005. the Anil Dhirubhai Ambani Enterprises Group comprising
Reliance Infocimm Limited Reliance Energy Limited and Reliance capital Mutual
Fund Limited . the group originally belongs to Reliance Group founded by late
Mr. Dhirubhai H. Ambani (1932-2002)
History:
Subject was
incorporated on 1st March 1994 at Ahmedabad in
Subject became a
deemed public limited company w.e.f. 27.01.2001.
The name of the
company was changed to Reliance Infocomm Limited w.e.f. 31st May,
2002.
On 31st July,
2002, another company was incorporated under the name and style of “ Reliance
Information and Communication Limited” with Company Registration Number 41035
of Gujarat ROC [U64202GJ2002PTC41035].
As per Scheme of Amalgamation
ordered by the Honourable High Court of Gujarat on 16th December
2002, Reliance Infocomm Limited and Reliance Information and Communication
Limited were amalgamated.
After the
amalgamation subject continued to be known as “Reliance Infocomm Limited” with
the new Company Registration Number 41035 of Gujarat ROC,
Reliance Infocom
Limited was originally incorporated at Mumbai having Company Registration No.
11-109474 dated 17.07.1997, now amalgamated and formed this new company at
Ahmedabad with a Fresh Certificate of Incorporation.
Subject is a part
of the Reliance Group of companies.
BUSINESS
The company has
applied for licence to provide global mobile personal communication by
satellite (GMPCS) services and to act as Internet service Provider [ISP].
Presently, the company is incurring pre-operative expenses.
Subject provides
following services:
1] Global
2] Internet Service Provider (ISP)
Services
The company
commenced its commercial operations very recently.
Subject is a member
of the Reliance group,
The group’s total
revenue is of Rs.650,000 millions (US$ 13.3 billions), cash profit of over Rs.75,000
millions (US$ 1.5 billions), net profit of over Rs.36,000 millions (US$ 740
millions) and export of Rs.114,000 millions (US$ 2.3 billions). The group has
total assets of Rs.690,000 millions (US$ 14.1 billions).
Subject company is
in process of establishing a nation-wide, high capacity, integrated (wireless
and wire line) and convergent (voice, data and video) digital network, to offer
services that will span the entire Infocomm value chain – infrastructure,
services for enterprises and individuals, applications and consulting.
The advanced
facilities based on intelligent next generation communication network with
terabit bandwidth will leapfrog Indian into a centre stage of global
communication and information technology space. This initiate, at the
convergence of information technology and communications, will foster a new way
of life – Digital way of life for a New India.
The company offers
voice communication from home, office or on the move, data communication, or
audio-visual communication, it brings a range of services that are high on
quality and assured on delivery.
Subject offers a
range of products and services to meet the needs of individuals, businesses and
carriers.
Mobile telephony, fixed
line telephony and Internet service now come with a range of solutions that
make the experience of communication entirely different and pleasurable.
Even to service
providers, Reliance’s range of services will boost their efficiency and
business success.
As a one-stop shop
for new age telecommunication solutions, subject has laid out one of the
biggest fibre optic networks in the world. Digital and broadband-capable, this
60,000 km of terabit capacity network, covering over 600 towns and cities in
On 14.03.2001, an
extra ordinary resolution was passed by the Board of Directors of the subject,
to determine the borrowing power/limits of the subject not exceeding Rs.750,000
millions, from FI’s and Commercial Banks
for its project.
The Project Cost:
So Far Rs.9,390 millions, further orders worth Rs.24,660 millions were given to
international vendors for the import of transmission equipments, electrical
instruments, etc. for the project.
Subject have
deposits of Rs. 8,000 millions (Rs.14,500 millions) from Reliance Industries
Limited and Lease Finance of Rs.164.171 millions as on 01.04.2001. Corporate
Loan of Rs.1,593.411 millions for 3 to 30 years has been availed.
The Telecom
Regularity Authority of India (TRAI),the company has pegged its subscriber base
during the first year of operations at close to six millions.
This works out to
an astonishing 60 percent of the existing mobile market that the cellular
operators have painfully notched up over the past seven years. The South Korean conglomerates LG
Electronics (LGE) and Samsung who are in the race to bag the prestigious order
for code division multiple access (CDMA) handsets, which will be bundled with
the limited mobility services of the company.
Both the companies
are known leaders in the CDMA handset and equipment business, having catered to
the South Korean market for more than eight years.
Subject imports
capital goods, components & spares, etc. from reputed manufacturers and
suppliers in
Caption
administrative office premises of area admeasuring 5000 sq. ft. situated on
ground floor of a building is also owned by the company. Though the registered
office of the company is situated at “Avdhesh House”, all the activities are
carried out from its administrative office at “Premchand House-Annexe”
building, where the telecom services of group companies are functioning
together”.
PRESS CLIPPINGS
Reliance Infocomm
welcomes Ms. Nalini Gupta as Marketing Advisor at the Chairman's Office
Mumbai, July 20, 2005
Reliance Infocomm today welcomed
Ms. Nalini Gupta, who joins the team as Marketing Advisor - Chairman's
Office.
Ms. Gupta comes to Reliance
Infocomm from Airtel Enterprise Services (AES), where she was Chief
Products and Marketing Officer. Her responsibilities included Product
Management of voice and data products, along with new introductions.
Prior to Bharti, Ms. Gupta has
worked in
Ms. Gupta is a B.S. as well as an
M.S. in Computer Sciences from The College of Staten Island, City University of
New York.
Reliance Infocomm Limited, an Anil
Dhirubhai Ambani Enterprises group company, is
The Anil Dhirubhai Ambani
Enterprises Group is a member of the Reliance Group, founded by Shri Dhirubhai
H. Ambani (1932-2002).
Mumbai, July 18, 2005
ADA Enterprise today welcomed
Debabrata Chowdhury, who joins the team as Vice President - Technology
Development . He will be a key technology resource for the Group.
Debabrata comes to ADAE from Bharti
Tele-ventures Limited, where he was Chief Technology Officer,
Prior to Bharti, Debabrata has
worked in the
Debabrata is B.S. in Electrical
Engineering and has pursued Graduate studies in Electrical Engineering from
The Anil Dhirubhai Ambani
Enterprises Group is a member of the Reliance Group, founded by Shri Dhirubhai
H. Ambani (1932-2002).
Colour handset @ Rs2799
from Reliance Infocomm
- Rs 1,000 bonus talktime on new handsets
DAKC (
With
Reliance Infocomm announcing a bonus talk time of Rs 1,000 on purchase of new
handsets across the country, effectively, a new colour handset will now be
available at Rs 2,799.
The price
for some popular black-and-white handsets would work out to Rs999.
For prepaid
subscribers, the bonus talk time that is valid for 90 days from the date of
purchase can be consumed for making calls to Reliance IndiaMobiles. It is open
for all new handsets activated between July 10 and 31, 2005.
On postpaid
tariff plans, it will be credited to the monthly bills at the rate of Rs 200 a
month for five months. The bonus could be consumed for making calls to both
Reliance IndiaMobile and Fixed Wireless Phone and the offer will be effective
from July 9 to August 09, 2005.
As the company
expands its subscriber base, the company is looking to spread the fruits of
mobile revolution and excitement of owning a colour handset.
The LG
5130, for instance, has unique features such as a speakerphone and Hindi
interface to facilitate SMS in the national language, multimedia capabilities,
and a screen large enough to support video clips, games, wallpapers and other
such multimedia applications available on R World. The phone also doubles up as
a wireless modem to provide access to the Internet anywhere, anytime with R
Connect service.
Reliance
Infocomm Limited, an Anil Dhirubhai Ambani Enterprises group company, is
The Anil
Dhirubhai Ambani Enterprises group, is a member of the Reliance Group, founded
by Shri Dhirubhai H. Ambani (1932-2002).
DAKC (
Mumbai, July 12, 2005: ADA
Enterprises today welcomed Ramesh Venkat, who joins the team as President
(Finance).
Ramesh comes to ADA Enterprises
from Vedanta/Sterlite group, where he was the Group CFO (Chief Financial
Officer) from 2001, responsible for Finance, Treasury, corporate planning and
related functions.
A Chartered Accountant, Cost
Accountant and Company Secretary of nearly 20 years standing, Ramesh has had a
brilliant academic record. He started his career with Hindustan Lever Limited,
and has thereafter worked with ANZ Grindlays Bank and Credit
The Anil Dhirubhai Ambani
Enterprises group, is a member of the Reliance Group, founded by Shri Dhirubhai
H. Ambani (1932-2002).
Reliance Infocomm
welcomes Sanjay Behl as Head of Branding
DAKC (
Reliance Infocomm today welcomed
Sanjay Behl, who joins the team as Head of Branding. He will be a key marketing
resource for the Group.
Behl comes to Reliance Infocomm from
Nokia, where he was Head of Marketing for its
An MBA in marketing management,
Behl started his career with Hindustan Lever Limited His ten years at HLL
included two years with Unilever's global brand core team for two household
care brands.
Reliance Infocomm Limited, an Anil
Dhirubhai Ambani Enterprises group company, is
The Anil Dhirubhai Ambani
Enterprises group, is a member of the Reliance Group, founded by Shri Dhirubhai
H. Ambani (1932-2002).
Reliance-Intel Gamebox
Nationals from May 28
- Country's biggest PC game championship,
to be held in 104 cities at 230 WebWorlds
- 15,000 gaming buffs to test nerves on
World's most popular PC games
DAKC (
Reliance WebWorld and Intel
launched
Some 15,000 gaming enthusiasts are
expected to participate in the championship that includes popular games such as
Counter Strike: Condition Zero, Need for Speed, Unreal Tournament 2004,
Warcraft III: The Frozen Throne and FIFA 2004.
Winners from each participating
Reliance WebWorld will fight it out at the WebWorld level between 30th May to
2nd June-05 and circle level between 4th to 6th June 04 and Zonal levels
between 10th to 12th June-05. The Zonal winners will lock horns at the national
finals on June 18th & 19th in Mumbai.
While the national winner will win
a TVS Victor motorbike, thanks to TVS who are prize sponsors, circle level
winners will pocket a Yepp55 Samsung Digital Audio Players.
Announcing the launch, Sarup
Chowdhary, CEO, Reliance WebWorld said, "Gamers across
In addition to supporting play on
the Reliance WebWorld network, special Game Dedicated Servers have been set up
at the Reliance Data Centre to allow hordes of gamers to game.
Sunil Buch, Head Marketing WebWorld
adds "The Gamebox National Championship is being supported by Radio in the
6 top cities of Mumbai,
Reliance WebWorld is a world-class
nationwide chain of retail outlets for all Infocomm products and services,
digital information, entertainment and communication in Real Broadband. Each
store has three modules - a Customer Convenience Centre, a JAVAGREEN, and a
Broadband Centre (BBC). While JAVAGREEN is a gourmet coffee bar, at the
broadband centre one can enjoy video chat and conferencing, multiplayer online
gaming, Digital Electronic News Gathering (DENG), digital photo imaging,
virtual office and high-speed Internet surfing - about 100 times faster than a
dial-up.
Reliance Infocomm Limited, a Reliance
group company, is
Parent
company
v
Reliance
Industries Limited
v
Reliance
Communications Technology Limited
“Brindavan” 2nd Floor, Shree Ram Mills Premises, Ganpatrao
Kadam Marg, Worli, Mumbai – 400 018,
Tel. No. 91-22-24916000
Fax No. 91-22-24916112
- Incorporated on 30.06.2000 at Mumbai in
(The company was
holding 80 % equity shares = 100 millions equity share in the company as on
27.01.2001)
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.40.56 |
|
|
1 |
Rs.80.81 |
|
Euro |
1 |
Rs.54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
|