MIRA
INFORM REPORT
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Report Date : |
26.09.2007 |
IDENTIFICATION DETAILS
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Name : |
ARS SYSTEMS AND COMMUNICATIONS LIMITED |
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Registered Office : |
41, Pali Hill, Near |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.04.2000 |
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Com. Reg. No.: |
125716 |
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CIN No.: [Company
Identification No.] |
U92100MH2000PLC125716 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA14186E |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Dealing in Chemicals, Paper, Leather, Petroleum Products etc. |
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 85540 |
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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 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 : |
41, Pali Hill, Near |
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Tel. No.: |
91-022-26000555 / 75 / 26045474 |
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Fax No.: |
91-022-26499118 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Sudhir Brijmohan Mehra |
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Designation : |
Whole Time Director |
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Address : |
403, Shailja Apartments, Pali Hill, Bandra (West), Mumbai 400 050, |
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Date of Birth/Age : |
07.05.1962 |
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Date of Appointment : |
10.04.2000 |
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Name : |
Mr. Sanjay Vinod Mehra |
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Designation : |
Whole Time Director |
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Address : |
202, Neptune Apartments, Pali Hill, Bandra (West), Mumbai 400 050, |
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Date of Birth/Age : |
22.06.1965 |
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Date of Appointment : |
10.04.2000 |
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Name : |
Mr. Brijmohan Jagdishpal Mehra |
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Designation : |
Whole Time Director |
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Address : |
403, Shailja Apartments, Pali Hill, Bandra (West), Mumbai 400 050, |
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Date of Birth/Age : |
18.02.1935 |
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Date of Appointment : |
01.11.2001 |
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Name : |
Mr. Vinod Jagdishpal Mehra |
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Designation : |
Whole Time Director |
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Address : |
202, Neptune Apartments, Pali Hill, Bandra (West), Mumbai 400 050, |
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Date of Birth/Age : |
10.02.1939 |
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Date of Appointment : |
01.02.2002 |
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Name : |
Mr. Rajiv Jayantilal Shah |
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Designation : |
Director |
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Address : |
406, Veena Vihar, 17 / |
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Date of Birth/Age : |
29.05.1964 |
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Date of Appointment : |
31.01.2005 |
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Name : |
Mr. Tejas Navinchandra Seth |
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Designation : |
Director |
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Address : |
272 / 273, Hind Rajasthan Shopping Centre, Cosmopolitan Society, Block
No. 1, Near |
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Date of Birth/Age : |
14.05.1972 |
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Date of Appointment : |
31.01.2005 |
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Name : |
Mr. Sanjeev Rajendra Mehrotra |
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Designation : |
Director |
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Address : |
401, Shiv Sagar Apartments, 41, Pali Hill, Bandra (West), Mumbai 400
050, |
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Date of Birth/Age : |
24.02.1962 |
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Date of Appointment : |
31.01.2005 |
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Name : |
Mrs. Sangeeta Sudhir Mehra |
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Designation : |
Whole Time Director |
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Address : |
403, Shailja Apartments, Pali Hill, Bandra (West), Mumbai 400 050, |
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Date of Birth/Age : |
30.12.1965 |
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Date of Appointment : |
30.06.2005 |
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Name : |
Mr. Deepak Rupchand Sumani |
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Designation : |
Whole Time Director |
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Address : |
2 / 31, Jai Shashtri Nagar, Mulund Colony, Mumbai 400 082, |
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Date of Birth/Age : |
04.08.1966 |
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Date of Appointment : |
30.06.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Sudhir B Mehra |
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391024 |
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Mrs. Usha B Mehra |
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260682 |
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Mrs. Tripta V Mehra |
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260682 |
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Mr. Sanjay V Mehra |
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260681 |
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Mr. Brijmohan J Mehra |
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65172 |
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Mr. Vinod J Mehra |
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65172 |
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Mr. Sanjiv R Mehrotra |
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10 |
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Mr. Sanjay Gupta |
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10 |
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Total |
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1303433 |
Equity share breakup (percentage of total equity)
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S. No. |
Category |
Percentage |
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1 |
Directors ore relatives of directors |
99.99 |
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2 |
Other top fifty (50) shareholders (other
than listed above) |
0.01 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in dealing in Chemicals, Paper, Leather, Petroleum
Products etc. |
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Products : |
Trade Sales |
GENERAL INFORMATION
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Bankers : |
Oriental Bank of Commerce,
Santacruz (West) Branch, Aajay
Apartments, |
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Facilities : |
SECURED LOAN
UNSECURED LOAN
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dhirajlal Desai and Company Chartered Accountants |
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Address : |
A – 33, Navyug Niwas, 167 Dr. D B Marg, Opposite Minerva Cinema,
Mumbai 400 007, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1400000 |
Equity shares |
Rs. 10/- each |
Rs. 14.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1303400 |
Equity shares |
Rs. 10/- each
|
Rs. 13.034
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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13.034 |
13.034 |
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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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8.351 |
7.064 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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21.385 |
20.098 |
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LOAN FUNDS |
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1] Secured Loans |
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3.800 |
7.822 |
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2] Unsecured Loans |
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1.347 |
1.095 |
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TOTAL BORROWING |
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5.147 |
8.917 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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26.532 |
29.015 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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4.343 |
2.761 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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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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23.054 |
14.035 |
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Sundry Debtors |
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44.017 |
58.307 |
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Cash & Bank Balances |
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11.120 |
5.742 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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17.318 |
11.593 |
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Total
Current Assets |
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95.509 |
89.677 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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70.056 |
61.047 |
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Provisions |
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3.298 |
2.419 |
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Total
Current Liabilities |
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73.354 |
63.466 |
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Net Current Assets |
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22.155 |
26.211 |
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MISCELLANEOUS EXPENSES |
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0.034 |
0.043 |
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TOTAL |
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26.532 |
29.015 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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63.442 |
117.492 |
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Other Income |
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4.474 |
6.597 |
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Total Income |
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67.916 |
124.089 |
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Profit/(Loss) Before Tax |
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2.165 |
2.122 |
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Provision for Taxation |
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0.879 |
0.760 |
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Profit/(Loss) After Tax |
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1.286 |
1.362 |
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Expenditures : |
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Purchases made for re-sale |
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60.741 |
102.495 |
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Increase/(Decrease) in Finished Goods |
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(9.018) |
2.451 |
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Salaries, Wages, Bonus, etc. |
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1.176 |
1.077 |
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Managerial Remuneration |
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1.440 |
1.440 |
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Interest |
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5.618 |
6.937 |
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Insurance Expenses |
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0.028 |
0.021 |
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Power & Fuel |
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0.603 |
0.594 |
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Depreciation & Amortization |
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0.812 |
0.459 |
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Other Expenditure |
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4.351 |
6.493 |
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Total Expenditure |
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65.751 |
121.967 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.89 |
1.09 |
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Net Profit Margin (PBT/Sales) |
(%) |
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3.41 |
1.71 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.16 |
2.29 |
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Return on Investment (ROI) (PBT/Networth) |
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0.01 |
0.10 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.53 |
3.60 |
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Current Ratio (Current Asset/Current Liability) |
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1.30 |
1.41 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
Ř
Building
Ř
Office Equipment
Ř
Computers
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Vehicles
Ř
Furniture and Fixtures
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Name of the company |
ARS
SYSTEMS AND COMMUNICATIONS LIMITED |
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Presented
By |
ORIENTAL
BANK OF COMMERCE, SANTACRUZ (WEST), MUMBAI 400 054 |
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1) Date and description of instrument creating the change |
6the February 2002 Packing Credit Agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 50.000 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 |
To secure the due repayment of the packing credit limit of Rs. 5.000 millions interest and other charges thereon 1. Hypothecation and first charge in bank’s facour all the company’s stocks consisting of stocks being computers, computer peripherals, food products, stainless steel products, general merchandise, ready to eat food products, dehydrated vegetables and blended products which expression shall include all products, finished / semifinished goods and movable property inclusive of goods / row materials purchased / to be purchased and belonging to them which now or hereafter from time to time during the continuance of this agreement shall be brought in, stored or hereinafter from time to time during the continuance of this agreement shall be brought in, stored or be in or about their premises, godowns or any other godown or godowns or be in course of transit from one godown to another or wherever else the same may be for the purpose of processing and / or shipment as continuing security for payment of the balance due and payable inclusive of interest, cost and other charges and for all debts and liabilities to the bank in terms of the loaning documents executed by the borrower company with the Bank. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest: As per FEDAI Rules Incase of nil export or short export, the company shall pay interest at the rate as applicable in the cash credit account which ever is higher with quarterly rest or at such other rate as the bank may fix from time to time. Margin: 25% of the Hypothecated assets. |
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5) Name and Address and description of the person entitled to the charge. |
Oriental
Bank of Commerce, Santacruz (West) Branch, Aajay Apartments, |
As Per Web Details:
ARS Worldwide
headquartered in
ARS Worldwide, this
division came into being 1999, distinguishing between the various product
categories being exported as the result forming a division in the parent
company Subject In 1999, Subject exclusively partnered with various companies
manufacturing quality products there by helping in increasing the production
capacity and in-turn increasing the market share in various product categories.
With the increase in the market share and the increased exposure in the
international market Subject began its international marketing division for
various products that is dedicated to provide quality products and ensuring
customer driven targets.
Their division has
continued to grow through in leaps arid is positioned for the future with a
product mix and geographical presence that matches global market opportunities.
They have an innovative culture comprised of a diverse group of talented people
who develop, manufacture and market its products effectively, with the increase
and the potential in the world market, Subject has increased the exports
capacity. By the beginning of the year 2002, It has further set its vision and
target to increase the exports manifolds.
At ARS Foods, they
understand the importance of customer choice. They are committed to offering a
balanced array of product and price in their ever-growing portfolio of Fast
Moving Consumer Goods.
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.39.75 |
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|
1 |
Rs.80.33 |
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Euro |
1 |
Rs.56.29 |
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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
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
|
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 |
|