MIRA
INFORM REPORT
|
Report Date : |
17.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
TERACOM LIMITED |
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Registered Office : |
Plot No. 250, Kundaim Industrial Estate, Kundaim, Goa – 403 115 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.02.2001 |
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Com. Reg. No.: |
002950 |
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CIN No.: [Company
Identification No.] |
U24241GA2001PLC002950 |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Subject is engaged in designing and manufacturing
innovative optical technology solutions to enable telecommunication at very
high speed to meet this bandwidth demand. |
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 2690000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Trade relations are fair. Payments are usually correct and as per
commitments. The company is doing well. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 250, Kundaim Industrial Estate, Kundaim, Goa – 403 115, India |
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Tel. No.: |
91-832-3208260/ 3206879/ 1111236166 |
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Fax No.: |
91-832-2396165 |
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E-Mail : |
Sales- OFC: sales@teracomfibre.com
Sales-Telecom: sales@teracom.in Sales Power Cables: terexel@teracom.in Corporate Information: info@teracom.in |
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Website : |
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Corporate Office : |
Teracom House, B – 84, Sector – 60, Noida – 201 301, Uttar Pradesh,
India |
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Tel. No.: |
91-120-3290587/ 3290672/ 11113021003/ 3021004 |
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Fax No.: |
91-120-2585422 |
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Manufacturing Facility: |
Pant Nagar, Plot No. – 17 to 19 and 52 to 54, Sector – 5, Pant Nagar –
263 145, Uttaranchal, India |
DIRECTORS
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Name : |
Mr. Rajeev Venkatraman Coimbatore |
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Designation : |
Executive Director |
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Address : |
F-59, Medha, Apartments, Mayur Vihar Phase – I, Delhi – 110 091, India |
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Date of Birth/Age : |
26.06.1970 |
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Date of Appointment : |
22.02.2002 |
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Name : |
Mr. Mukesh Arora |
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Designation : |
Managing Director |
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Address : |
B-26, Sector – 36, Noida – 201 301, Uttar Pradesh, India |
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Date of Birth/Age : |
27.05.1966 |
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Date of Appointment : |
30.03.2003 |
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Name : |
Mr. Badri Nath Iyengar |
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Designation : |
Director |
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Address : |
174, National Media Centre Building Society, Shankar Chowk, NH – 8,
Gurgaon 122 001, Haryana, India |
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Date of Birth/Age : |
08.03.1937 |
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Date of Appointment : |
30.05.2006 |
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Name : |
Mr. Anirudh Kumar Jain |
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Designation : |
Director |
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Address : |
8/1 – B, Aravali View Rail Vihar, Sector – 56, Gurgaon – 122 003,
Haryana, India |
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Date of Birth/Age : |
02.08.1941 |
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Date of Appointment : |
30.05.2006 |
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Name : |
Mr. Pankaj Garg |
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Designation : |
Director |
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Date of Birth/Age : |
07.10.1971 |
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Date of Appointment : |
11.04.2005 |
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Name : |
Mr. Santoki Koike |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Foreign Holdings ( Foreign institutional investors, Foreign Companies,
Foreign Financial Institutions, Non Resident Indians or Overseas corporate
bodies |
|
9.00 |
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Bodies corporate ( not mentioned above ) |
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0.10 |
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Directors or relatives of directors |
|
90.00 |
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Indian Public |
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0.90 |
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Total |
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100 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in designing and manufacturing innovative optical technology solutions to enable telecommunication at very high speed to meet this bandwidth demand. |
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Products : |
v
Multi-Tube
Armored/Dielectric Cable |
GENERAL
INFORMATION
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Suppliers : |
v
Hongze Mechano-electronic Manufacturing Company Limited |
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No. of Employees : |
100 |
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Bankers : |
v Punjab National
Bank, New Delhi v ICICI Bank
Limited, Race Cource circle, Alkapuri, Baroda, Gujarat, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Mayur Batra and Company Chartered Accountants |
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Address : |
7, Barakhamba Road, New Delhi – 110001, India |
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Associates/Subsidiaries : |
v Nextera Telecom
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
38131700 |
Equity Shares |
Rs. 10/-
each |
Rs. 381.317 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
110.000 |
100.000 |
100.00 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
562.507 |
103.609 |
1.430 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
672.507 |
203.609 |
101.430 |
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LOAN FUNDS |
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1] Secured Loans |
87.964 |
11.616 |
0.000 |
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2] Unsecured Loans |
0.000 |
4.848 |
4.702 |
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TOTAL BORROWING |
87.964 |
16.464 |
4.702 |
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DEFERRED TAX LIABILITIES |
12.194 |
8.709 |
0.000 |
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DEFFERED CREDITORS |
0.000 |
0.000 |
152.399 |
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TOTAL |
772.665 |
228.782 |
258.531 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
161.420 |
80.896 |
73.605 |
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Capital work-in-progress |
100.482 |
11.153 |
0.000 |
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INVESTMENT |
0.500 |
0.000 |
145.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
60.303 |
178.567 |
11.471 |
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Sundry Debtors |
875.020 |
965.471 |
328.142 |
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Cash & Bank Balances |
292.666 |
40.647 |
316.864 |
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Other Current Assets |
13.212 |
8.107 |
4.394 |
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Loans & Advances |
89.140 |
19.476 |
2.229 |
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Total
Current Assets |
1330.341 |
1212.268 |
663.100
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
762.774 |
1069.800 |
630.563 |
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Provisions |
65.856 |
12.368 |
0.073 |
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Total
Current Liabilities |
828.630 |
1082.168 |
630.636
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Net Current Assets |
501.711 |
130.100 |
32.464
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MISCELLANEOUS EXPENSES |
8.552 |
6.633 |
7.462 |
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TOTAL |
772.665 |
228.782 |
258.531 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2056.547 |
993.835 |
873.024 |
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Other Income |
5.648 |
8.817 |
22.385 |
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Total Income |
2062.195 |
1002.652 |
895.409 |
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Profit/(Loss) Before Tax |
304.411 |
121.462 |
20.840 |
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Provision for Taxation |
10.514 |
19.284 |
0.000 |
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Profit/(Loss) After Tax |
293.897 |
102.178 |
20.840 |
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Expenditures : |
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Raw Material Consumed |
1604.739 |
803.894 |
834.180 |
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Increase/(Decrease) in Finished Goods |
(8.387) |
(8.958) |
0.181 |
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Salaries, Wages, Bonus, etc. |
27.814 |
14.498 |
10.104 |
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Managerial Remuneration |
20.781 |
3.173 |
0.000 |
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Payment to Auditors |
1.818 |
0.276 |
0.000 |
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Interest |
4.659 |
0.952 |
5.583 |
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Insurance Expenses |
3.015 |
1.284 |
0.000 |
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Power & Fuel |
5.429 |
4.683 |
4.596 |
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Depreciation & Amortization |
4.645 |
4.905 |
6.648 |
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Other Expenditure |
93.271 |
56.483 |
10.505 |
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Total Expenditure |
1757.784 |
881.190 |
871.797 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
14.25
|
10.19 |
2.32 |
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Net Profit Margin (PBT/Sales) |
(%) |
14.80
|
12.22 |
2.39 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
20.40
|
9.39 |
2.83 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.45
|
0.60 |
0.20 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.36
|
5.39 |
6.26 |
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Current Ratio (Current Asset/Current Liability) |
|
1.60
|
1.12 |
1.05 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U24241GA2001PLC002950 |
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Name of the
company |
TERACOM LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
Plot No. 250, Kundaim Industrial Estate, Kundaim, Goa – 403 115, India |
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Type of charge |
A Charge on
Immovable Property, Book Debts, and Movable Property ( not being pledge ) |
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Particular of
charge holder |
CIN : L65190GJ1994PLC021012 Name : ICICI Bank Limited , Landmarkrace Cource Circle, Alkapuri, Baroda –
390 015, Gujarat, India |
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Nature of
description of the instrument creating or modifying the charge |
|
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Date of
instrument Creating the charge |
03.10.2006 |
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Amount secured by
the charge |
Rs. 195.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
Terms of repayment
Margin
a)
Against
Inventory: Borrower shall maintain uniform margin of 25% against all
components of Inventory b)
Against Book
Debts: Cover period of 9 days and margin of 25% c)
Cash margin
for LC/BG – 10% Extent operation of the charge As per Schedule 1 |
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Name of the company |
M/s TETACOM PRIVATE LIMITED |
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Presented By |
Punjab National Bank and Teracom Private
Limited |
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1) Date and description of instrument creating the change |
i)
Deed of
Hypothecation to secure LC on DA Basis ii)
General
Counter Indemnity, both dated 13.10.2005 Copy of sanction letter dually
accepted by the borrower. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 30.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
i)
Hypothecation
of goods/ assets represented by documents drawn/ covered under the Letter of
Credit issued under the above said limit, which now or hereafter from time to
time during the continuance of this agreement shall be brought in, stored or
to be in or about their premises or godowns at 250, Kundaim Industrial
Estate, Kundaim, Goa or any other godowns or to be in course of transit from
one godown to another or wherever else the same may be. ii)
General
Counter Indemnity of the Company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
i)
The company
agree to reimburse and indemnity the Bank for all the amounts paid under LG
together with interest as applicable to Cash Credit ( Presently at the rate
of BPLR + 1.50% i.e. 12.25%p.a. ) or such other rate as may be prescribed by
the bank from time to time for cash credit amount with monthly rest and for
costs and charges. ii)
Margin on
ILC/ FLC ( DA/DP ): 10% upto 90 usance and beyond 90 days iii)
Margin on
LG: 20% (100% margin for guarantees against disputed liabilities iv)
Commission
on ILC/FLC (DA/DP) and LG shall be charged as per schedule of service charges |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National
Bank, Large Corporate Branch, A-9, Connaught Place, New Delhi |
Website Details
Attached:
Business:
Subject is one of the leading private Sector companies in India contributing to the growth of the Telecom & Power Infrastructure Sectors in the World’s fast growing & emerging economies.
As Telecom & Power Sectors continue to get unshackled in India, Subject contributes to the progress in these Sectors by providing wide range of high quality & cost competitive products & Turnkey Services.
Subject’s diversified status originates from its chosen corporate strategy to create multiple drivers of growth on its test competencies: low cost manufacturing, superior technology absorption skills, Highly skilled manpower, effective supply chain management & widely spread Service Centers. Over a period of time, the strategic forays into new businesses are likely to give access to a significant market share for Subject in these emerging & high growth markets.
Milestones:
v Incorporated as Teracom Private Limited. Mar, 2002
v Signed Strategic MoU for cooperation to manufacture & supply of CDMA 2000 1X Mobile Handsets in India. Oct, 2002
v Bagged Bulk Contract for Supply of CDMA 2000 1X Mobile Handsets.
v Received ISO9001:2000 accreditation of Goa facility. Oct, 2002
v Received prestigious RDSO Type Approval for Armoured Fiber Optic Cables for Supply to Indian Railways. May, 2004
v Received TEC Type Approval for 12F/24F/48F Fiber Optic Cables.
v Signed Strategic MoU for co-operation to manufacture & supply CDMA Fixed Wireless Phone in India. Aug, 2004
v Bagged Bulk Contract for Supply of 525,000 Units of CDMA 2000 1X Fixed Wireless Phone worth Rs.237 Crores. Dec, 2004
v Exceeded the Rs.100 Crores Turnover mark. Jun, 2005
v Received Infrastructure Approval for manufacture of High Fiber Count Ribbon Fiber Optic Cable.
v Commenced supplies of ADSL2+ CPE MODEMS.
v Received contract for Supply of 100,000 Units of CDMA 2000 1X Fixed Wireless Phones. Feb, 2006
v Commenced partial production of Power/Control Cables at Goa facility. Mar, 2006
v Initiated green field HT Power Cable Project in Uttaranchal. May, 2006
v Received prestigious ISO 14001 certification.
v Crossed Rs.200 Crores Turnover Milestone. Jun, 2006
v Bagged Contract for Supply of 401,000 Units of CDMA 2000 1X Fixed Wireless. Dec, 2006
v Received Commercial Supply Contract for High Fiber Count Ribbon Fiber Optic Cable. Jan, 2007
v Received Letter of Intent for Supply of High Fiber Count Ribbon Fiber Optic Cable using G.652D Fiber, for the first time in India. Apr, 2007
v Bagged Turnkey Service Contract for Installation & Commission of Telecom Infrastructure for leading Telecos in India. Apr, 2007
v First Indian Company to cross Supply Landmark of 1 Million CDMA 2000 1X Phones. Jun, 2007
The Company
Subject is fast emerging Corporate House with significant business interests in 2 exponentially growing Business Sectors – Telecom & Power. With a desire to cater fully integrated Products & Services to their prestigious list of Clients, Subject has set up world-class manufacturing facilities in Goa & Uttaranchal to cater to the diversified needs of the Customers. They have set-up Projects & Systems Integration Units to provide optimal solutions, interconnectivity & compatibility of their products to customers’ existing systems. They have also established a network of after-sale service centers to ensure timely service to their valuable customers.
To ensure continuity & sustainability of their commitment & continuous improvement in their products to their valued customers, Subject has put in place Quality Management Systems & Processes in accordance with ISO 9001 & ISO 14001 international quality standards.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.39 |
|
UK Pound |
1 |
Rs. 81.49 |
|
Euro |
1 |
Rs. 58.49 |
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. |
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 |
|