MIRA
INFORM REPORT
|
Report Date : |
07.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MAHA LAKSHMI TELE SERVICES |
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Registered Office : |
Plot No. 58, Nayakranti Nagar, A S Rao Nagar, ECIL, Hyderabad -500 062
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.11.2001 |
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Com. Reg. No.: |
MRS/732/2005-S.TAX |
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PAN No.: [Permanent
Account No.] |
AGNPM1971D |
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VAT TIN No.: |
28760109876 |
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Service Tax No.: |
AGNPM1971DST001 |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Laying of Optical Fibre Cables, Trenching and Ducting for Telecom
Companies. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed concern undertaking
jobwork for laying of Optical Fibre Cables, Trenchnig and Ducting for telecom
companies. Proprietor is reported as experienced and respectable personnel.
Trade relations are fair. Subject’s future seems to be bright. Payments are
reported as usually correct and as per commitments. The concern can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Plot No. 58, Nayakranti Nagar, A S Rao Nagar, ECIL, Hyderabad -500 062
Andhra Pradesh, India |
|
Location : |
Leased for 5 years (Monthly Rent Rs. 3500.00) |
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Administrative Office : |
Plot No. 285, RKH Colony, Near A S Rao Nagar, Malkajgiri Municipality,
Hyderabad – 500 062, Andhra Pradesh, India |
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Tel. No.: |
91-40-27130636 |
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Mobile No: |
91-9246289636 / 9246170636 / 9866013042 / 9246542640 / 9246244369 |
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Fax No.: |
91-40-27130636 |
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E-Mail : |
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Factory / Godown : |
Plot No. 42, Nayakranti Nagar, A S Rao Nagar, ECIL, Hyderabad - 500
062 Andhra Pradesh, India |
SOLE PROPRIETOR
|
Name : |
Mrs. Ratna Kumari Mikkilineni |
|
Designation : |
Proprietrix |
|
Address : |
Plot No. 101-102, Krishnaveni Residency, S3 , IInd Floor,
Netaji Nahar, Kapra Hyderabad – 500 062, Andhra Pradesh, India |
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Date of Birth/Age : |
15.08.1971 |
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PAN No.: |
AGNPM1971D |
KEY EXECUTIVES
|
Name : |
Mr. Venkat Rao |
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Designation : |
Key Person |
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Date of Appointment : |
10.11.2001 |
BUSINESS DETAILS
|
Line of Business : |
Laying of Optical Fibre Cables, Trenching and Ducting for Telecom
Companies. |
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|
Products: |
Nil But Only on Job work basis |
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|
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Terms : |
|
|
Selling : |
Credit ( Dely +30 Days-90%, 10% after PBG) |
GENERAL
INFORMATION
|
Customers : |
· Tata Teleservices, Hyderabad · VSNL, Hyderabad · Vodafone, Hyderabad · Railtel Corporation, Hyderabad · Idea Cellular, Hyderabad · Aster Teleservices Private Limited, Hyderabad |
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No. of Employees : |
30 |
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Bankers : |
Corporation Bank, Sainikpuri Branch |
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Facilities : |
· Overdraft Facility – Rs. 2.500 millions · Mortgage loan – Rs. 1.380 millions · Corp Mobile – Rs. 0.500 million |
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Banking
Relations : |
----- |
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Auditors : |
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Name : |
Kotte and Associates Chartered Accountants |
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Associates/Subsidiaries : |
· Sai Ratna Constructions Activity: Civil Works · Genius Working Mens Hostel (300 Occupancy) Activity: Paying Guest Facility |
CAPITAL STRUCTURE
|
Capital Investment : |
(As on
31.03.2007) |
|
Owned : |
Rs. 1.862 millions |
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Borrowed : |
---- |
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Total : |
Rs. 1.862 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2009 (Projected) |
31.03.2008 (Projected) |
31.03.2007 |
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|
SHAREHOLDERS FUNDS |
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|
|
|
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1] Proprietor’s Capital |
8.851 |
3.381 |
1.862 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
8.851 |
3.381 |
1.862 |
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|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
10.800 |
10.140 |
2.770 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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|
TOTAL BORROWING |
10.800 |
10.140 |
2.770 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
PROFIT & LOSS A/C |
6.300 |
5.000 |
0.874 |
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TOTAL |
25.951 |
18.521 |
5.506 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1.300 |
0.500 |
0.521 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
0.000
|
0.000 |
6.378 |
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Cash & Bank Balances |
0.150
|
0.100 |
0.124 |
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Other Current Assets |
34.001
|
24.521 |
1.887 |
|
|
Loans & Advances |
0.000
|
0.000 |
1.500 |
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Total
Current Assets |
34.151
|
24.621 |
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
6.600 |
4.904 |
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Provisions |
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Total
Current Liabilities |
9.500
|
6.600 |
4.904 |
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Net Current Assets |
24.651
|
18.021 |
4.985 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
25.951 |
18.521 |
5.506 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2009 (Projected) |
31.03.2008 (Projected) |
31.03.2007 |
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|
Sales Turnover |
125.000 |
100.000 |
29.485 |
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|
Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
125.000 |
100.000 |
29.485 |
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Profit/(Loss) Before Tax |
8.300 |
6.500 |
0.874 |
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Provision for Taxation |
2.000 |
1.500 |
0.000 |
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Profit/(Loss) After Tax |
6.300 |
5.000 |
0.874 |
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Expenditures : |
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Raw Material Consumed |
19.000 |
12.500 |
3.941 |
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Salaries, Wages, Bonus, etc. |
0.500 |
0.400 |
0.417 |
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Interest |
1.400 |
0.350 |
0.226 |
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Power & Fuel |
0.270 |
0.075 |
1.220 |
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Depreciation & Amortization |
0.500 |
0.100 |
0.088 |
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Insurance Charges |
0.000 |
0.000 |
0.142 |
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Other Expenditure |
95.03 |
80.075 |
22.576 |
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Total Expenditure |
116.700 |
93.500 |
28.610 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2009 (Projected) |
31.03.2008 (Projected) |
31.03.2007 |
|
PAT / Total Income |
(%) |
5.04
|
5.00 |
2.96 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.64
|
6.50 |
2.96 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
23.41
|
25.87 |
8.40 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.94
|
1.92 |
0.47 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.29
|
4.92 |
4.12 |
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Current Ratio (Current Asset/Current Liability) |
|
3.59
|
3.73 |
2.02 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Trade Name |
MAHA LAKSHMI TELE SERVICES |
|
Shop / Office Address |
Plot No. 285, RKH Colony, Near A S Rao Nagar,
ECIL (PO), Hyderabad – 500 062, Andhra Pradesh, India Tel No: 91-40-27130636 |
|
Address of godowns |
Plot No. 42 Naya Kranthi Nagar,. Near Asha
Hospital Tel No: 91-40-40176156 |
|
Location of Branches |
Not Applicable |
|
Date when established |
10.11.2001 |
|
Since when dealing with our bank |
01.04.2003 |
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Type of Account |
OD |
|
Main Line of Business |
Optical Fibre Cable Cable Laying Works,
Tower Civil and Electric Works |
|
Ancillary Business, if any |
NIL |
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Other sources of Income |
NIL |
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Constitution |
Sole proprietorship |
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If individuals the applicant belongs to |
General |
|
Date of Incorporation of the
company |
NA |
|
Date of the commencement of business |
NA |
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Date of Commencement of business |
NA |
|
If trust, copies of the trust Deed and resolution submitted |
NA |
Particulars of Individual / Proprietor, Joint Family Members / Partners
/ Director / Trustees:-
|
Name |
Age |
Husband Name |
Relationship |
|
Mrs. Ratna Kumari |
35 Years |
Mr. M Venkat Rao |
Husband |
Business figures for the last three years
|
Parameter |
Year (2006- 2007) |
Year (2005- 2006) |
Year (2004- 2005) |
|
Sales |
29.500 |
24.811 |
17.543 |
|
Exports, if any |
Nil |
Nil |
Nil |
|
Purchases |
3.941 |
2.050 |
1.234 |
|
Gross profit |
1.802 |
1.640 |
0.992 |
|
Net profit |
0.874 |
1.340 |
0.792 |
|
Capital |
1.861 |
1.639 |
0.609 |
|
Reserves |
|
2.139 |
0.792 |
Present Bankers and Future and Extent of Credit Facilities Enjoyed;
|
Name of the Bank and Branch |
Nature of Facility |
Existing Credit Facility |
|
Corporation Bank, Sainikpuri |
OD |
Rs. 2.500 millions |
Details of Credit Limit (s) Sought :
|
Nature of facility |
Amount |
Purpose |
Repayment |
|
OD Enhancement |
Rs. 10.000 millions |
Towards working capital |
On Demand |
Details of security (ies) Prime as well as collateral :
|
Offered Type of security |
Name of the owner / title holder/ insured depositor |
Location of the property |
|
Collateral
Security House Property |
Mrs. Ratna Kumari Mr. V Vani |
Plot No. 50, 1-98/6/5/50251 Survey No. 76 Arunodaya Colony, Madapur |
Guarantor(s) Proposed:
|
Name of the Guarantors |
Age |
Occupation |
Net Worth as per statement |
|
Mr. Venkat Rao |
39 years |
Business |
Rs. 1.080 millions |
STATEMENT OF ASSETS AND LIABILITIES:-
|
From |
|
|
Name |
Mrs. M Ratnakumari |
|
Son / Daughter / Wife of |
Mr. M Venkat Rao |
|
Address: |
Plot No. 101-102 Krishnaveni Residency, S3, IInd
Floor, Netaji Nagar, Kapra Hyderabad – 500 062, Andhra Pradesh, India |
|
Office: |
Mahalakshmi Teleservices , Plot No. 285, RKH
Colony, Aeraongara, ECIL Hyderabad - 500 062, Andhra Pradesh, India |
|
Occupation |
Business |
|
Annual Income |
Source : Business Annual Income Rs. 1.802 millions |
STATEMENT OF ASSETS AND LIABILITIES:
Details of Assets Owned:-
Investment in business capital
|
Name of the company |
Amount invested (Rs. in
millions) |
|
Mahalakshmi Teleservices |
2.179 |
Immovable properties:
|
Name of the owner |
Location / Address of property
|
Extent of lands |
|
Mrs. Ratna Kumari |
Shivapur (v) Koppal District, Karnataka
State, Survey No. 76, Plot No. 50 Arunodaya Colony Madhapur. |
AC 5.00 116.7 Sq. yards |
|
Extent of building area constructed |
Type of property i.e whether
residential / agricultural / industrial / commercial , etc |
Details of documents conferring right |
|
Nil |
Agriculture Residential plot |
Sale Deeds No. 56 53 |
|
Present market value as on |
|
Rs. 2.000 millions Rs. 9.754 millions |
Others assets:
|
Nature / Detail of assets |
Market value of assets as on |
|
Jewels |
Rs. 0.400 millions |
Total Assets:
|
Rs. |
12.154 millions |
Liabilities:
|
Name of the Institution / Bank |
Details of nature and extent of credit limits / facilities enjoyed |
|
|
Nature of credit facility |
Extent (Rs. in millions) |
|
|
Corporation Bank |
Mortgage loan OD Limits Corp Mobile |
Rs. 1.380 millions Rs. 2.500 millions Rs. 0.500 millions |
Total Liabilities:
|
Rs. |
4.380 millions |
Networth:
|
Rs. |
7.774 millions |
STATEMENT OF ASSETS AND LIABILITIES:
|
From |
|
|
Name |
Mr. M Venkatarao |
|
Son / Daughter / Wife of |
Mr. M Uma Maheshwari Rao |
|
Address: |
Plot No. 101-102 Krishnaveni Residency, S3,
IInd Floor, Netaji Nagar, Kapra Hyderabad – 500 062, Andhra Pradesh, India |
|
Occupation |
Service |
|
Annual Income |
Source : Salary Annual Income : Rs. 0.156 millions |
STATEMENT OF ASSETS AND LIABILITIES:
Immovable properties:
|
Name of the owner |
Description of property |
Location / Address of property
|
Extent of lands |
|
Mr. M Venkat Rao |
Agricultural land |
Shivapur (v) Koppal District, Karnataka |
AC 6.00 |
|
Type of property i.e whether
residential / agricultural / industrial / commercial , etc |
Present market value as on |
Details of encumbrances |
|
Agriculture Land |
Rs. 1.600 millions |
Nil |
Others assets:
|
Nature / Detail of assets |
Market value of assets as on |
|
Cash on Hand |
Rs. 0.200 millions |
Total Assets:
|
Rs. |
1.800 millions |
Networth:
|
Rs. |
Rs.1.800 millions |
STATEMENT OF ASSETS AND LIABILITIES;-
|
From |
|
|
Name |
Mr. Vege Vani |
|
Son / Daughter / Wife of |
Mr. Kode Janardhan Rao |
|
Address: |
1-98-15 Main Road, Madhapur Hyderabad |
|
Occupation |
Business |
|
Annual Income |
Source : Business Annual Income Rs. 0.300 Millions |
STATEMENT OF ASSETS AND LIABILITIES
Details of assets owned
Investment in Business capital
|
Name of the Company / firm / concern in which investment is made |
Amount invested (Rs. in millions) |
|
Working Men’s Hostel |
2.862 |
Life Insurance policies:
|
Date of policy |
Policy No. |
Annual premium |
Sum assured |
|
18.05.2000 |
641246006 |
Rs. 0.025 millions |
Rs. 0.500 millions |
|
28.03.2005 |
646478679 |
Rs. 0.041 millions |
Rs. 0.500 millions |
Immovable properties:
|
Name of the owner |
Location / Address of property
|
Extent of lands |
|
Mrs. M Vani |
D No. 1-98/9/A, plot No. 27, S. No. 25
Madhapur Hyderabad -500 020, |
310 Sq. Yards |
|
Mr. V Vani |
Survey No. 76 Plot No. 50 Auronodaya Colony |
116.7 Sq. Yards |
|
Extent of building area constructed |
Type of property i.e whether
residential / agricultural / industrial / commercial , etc |
Details of documents conferring right |
Date of purchases |
|
9000 Sq.fts |
Residential / commercial Property |
DOC No. 5653/2004 Sales Deed |
21.05.2004 |
|
5753 Sq.fts |
Residential / commercial Property |
Doc No. 5181/05 |
20.04.2005 |
|
Original Purchases Costs |
Present market value as on |
|
Rs. 4.000 millions |
Rs. 8.440 millions (land and Building) Rs. 9.754 millions (Land and Building) |
Other Assets:
|
Nature / Detail of assets |
Market Value of assets as on |
|
Jewels |
Rs. 0.300 millions |
Total Assets:
|
Rs. |
21.356 millions |
Networth:
|
Rs. |
21.356 millions |
OTHER INFORMATION:
Background information:
|
Year of Establishment |
Actual Nov. 2002. Registered on 07.12.2004 |
|
Any change in Registered Office |
No. |
Details of Suppliers:
|
Name of the suppliers and their contacts numbers |
They do work on with Material basis and
hence no major suppliers. Small items they need are purchased by cash or
cheque basis |
Insurance details:
|
Unit’s Assets Covered |
Bank has taken care of insurance as per the
subject |
Financial Analysis:
|
Last available financial statement (year ended dd /mm / yyy) |
Projected till March 2009 31.03.2007-31.03.2008 |
|
|
Advances Taxes paid |
Nil as their payments are paid after
deduction of TDS |
|
|
Change in borrowings (from FY---- to FY---) |
Nil |
|
|
Debtors Position (at last month end __ specify amount >90
days) |
No debtor beyond 90 days |
|
|
Creditor Position (At last month end _specify all suppliers
not paid for more than 90 days) |
NA |
|
|
Stock position (at last month end) |
Not values at their end |
|
|
Drawing power |
Rs. 2.500 millions |
|
|
Any other material development |
Nil |
|
|
Whether the critical ratios conforms to the
bench mark stipulation (As auditor could not be contacted this cannot be taken.
Will take on his arrival ) as per papers submitted to Bank Investment is
shown as Rs. 2.179 millions) |
Current Ratio |
1.25 |
|
Debt Equity Ratio |
2.00:1 |
|
|
DSCR |
1.50 |
|
|
TOL / TNW |
4:1 |
|
|
Promoter Contribution |
25% |
|
Other Business interest of the promoters:-
Construction / hostel facilities
Bank Statement for the last six months:
|
Number of credit / debits , month – wise |
Almost Daily Transaction barring a very few
days |
|
Cheque Bounces |
No Cheque bounces in the past 6 months |
|
Line utilization –any evidence of perennial
overdrawing |
Nil |
|
Municipal and Corporation taxes |
Leased place, hence NA |
Activity levels at the time of visit:-
|
Number of Employees observed |
6 No. (only staff, others work at sites) |
|
Level of activity (Description of Production
/ Delivery / Customers) |
There is no delivery concerned as they lay
cables |
Others particulars:
|
Months (during the current year) |
Purchases |
|
Documents verified |
Yes |
Record of Originals verified:
|
Balance sheet and Schedules |
Yes |
|
Profit and loss Statement and schedules |
Yes |
|
Computation of income |
Yes |
|
Income Tax return |
Yes |
|
Photo identification |
Yes. PAN : AGNPM1971D |
SWOT ANALYSIS OF THE UNIT:-
|
Strengths Capability of delivering goods in time.
Loyal employees |
|
Weakness Arranging the funds to deliver the goods as
payments will be received only after 30 days of delivery (90%) |
|
Opportunities Actually they get more works than what they
do at present. There is a good scope of future work. As such the Turnover
jumped 3 fold from previous financial years. |
|
Threats They don’t see any major threat. They are
afraid that they should be able to complete the works what they get without
loosing. |
CONCLUDING REMARKS / SUMMARY OF FINDINGS:
|
Summary Of Findings: |
|
Mr. Venkat Rao (Husband of Mrs. Ratnakumari
(Proprietrix) is taking care of all the activities as key person. Accounting and
other banking activities an exclusive person is taking care. Auditor Mr.
Murali Krishna (92463-74248) is also an efficient professional in Hyderabad. |
FIXED ASSETS:
· Land and Buildings
· Plant and Machinery
· Furniture and fixture
· Jeep
· Bike
· Honda Active
· Car
· Other assets
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 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.40.47 |
|
UK Pound |
1 |
Rs.81.27 |
|
Euro |
1 |
Rs.62.11 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|