MIRA
INFORM REPORT
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Report Date : |
01.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
MOBILE MAGIC PRIVATE LIMITED |
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Registered Office : |
Leela House, 41— A, Opposite Dharampeth, Science College North, Ambazari
Road, Nagpur – 440 010, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.06.2004 |
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Com. Reg. No.: |
11-147219 |
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CIN No.: [Company
Identification No.] |
U64202MH2004PTC147219 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPM04555F |
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PAN No.: [Permanent
Account No.] |
AADCM9454C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Trader of Mobile Phones of all the brands except Nokia |
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 62000 |
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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 a well – established and reputed company meeting its normal
commitments timeously. Trade relations are fair. Business is active. Nothing adverse reported. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
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Name : |
Mr. Deepak Jai Kalyani |
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Designation : |
Operational Manager |
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Contact No.: |
91-9960926111 |
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Date : |
30.09.2008 |
LOCATIONS
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Registered Office/ Factory : |
Leela House, 41— A, Opposite Dharampeth, Science College North,
Ambazari Road, Nagpur – 440 010, Maharashtra, India |
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Tel. No.: |
91-712-2245551 /
2245552 |
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Mobile No.: |
91-9960926111 |
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Fax No.: |
91-712-2245552 |
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E-Mail : |
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Website : |
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Area: |
3000 Sq.fts |
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Locations: |
Rented |
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Regional Office : |
Mumbai Office :- 120 Saket,4th Floor, Above Centurion Bank,
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Others located at : · Karnataka · Chhatisgarh · Madhya Pradesh · Rajasthan |
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Notes: |
Subject have 95 outlets all over India |
DIRECTORS
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Name : |
Mr. Ravi Kedia |
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Designation : |
Director |
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Address : |
Plot No. 318-B, Pooja Model Town, Wardhman Nagar, Satnami Nagar,
Nagpur – 440 008, Maharashtra, India |
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Date of Birth/Age : |
22.08.1972 |
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Date of Appointment : |
29.06.2004 |
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E-Mail : |
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Name : |
Mr. Vijay Kumar |
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Designation : |
Director |
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Qualification : |
Engineer |
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Name : |
Mr. Vivek Kumar |
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Designation : |
Director |
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Qualification : |
Post Graduate |
KEY EXECUTIVES
|
Name : |
Mr. Deepak Jai Kalyani |
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Designation : |
Operational Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Ravi Kumar |
|
333333 |
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Mr. Vijay |
|
333334 |
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Mr. Vivek |
|
333333 |
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Total
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1000000 |
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Names of Allottees |
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No. of Shares |
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Mr. Ravi Kumar Kedia |
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280000 |
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Mr. Vijay Singh |
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280000 |
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Mr. Vivek Palod |
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280000 |
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Total |
840000 |
Equity Share Breakup (Percentage of Total Equity):-
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Category (As on 30.09.2007) |
Percentage |
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Directors or relative of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Trader of Mobile Phones of all the brands except Nokia |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
PDC |
GENERAL
INFORMATION
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Customers : |
End Users |
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No. of Employees : |
35 |
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Bankers : |
·
UCO Bank,
Somalwar Bhavan, 1st Floor, Mount Road, Extn Branch, Nagpur – 440
001, Maharashtra, India ·
Bank of
India, Main Branch, Kingsway, Nagpur – 440 001, Maharashtra, India ·
Bank of
Maharashtra ·
United Bank
India, Ghat Road |
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Facilities : |
Cash Credit – Rs. 40.000 millions (Union Bank of India) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Jay Ashish Maitra and Company Chartered Accountants |
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Address : |
Ramakrishnan and Maitra, 2nd Floor, Zal Complex, Residency
Road, Sadar, Nagpur – 440 007, Maharashtra, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
(As on
30.09.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
10.000 |
1.050 |
1.050 |
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2] Share Application Money |
0.000 |
0.950 |
0.000 |
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3] Reserves & Surplus |
2.332 |
1.520 |
0.870 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
12.332 |
3.520 |
1.920 |
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LOAN FUNDS |
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1] Secured Loans |
22.713 |
2.115 |
1.993 |
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2] Unsecured Loans |
0.664 |
0.294 |
0.050 |
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TOTAL BORROWING |
23.377 |
2.409 |
2.043 |
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DEFERRED TAX LIABILITIES |
0.291 |
0.087 |
0.000 |
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TOTAL |
36.000 |
6.016 |
3.963 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
21.009 |
4.027 |
0.743 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
1.026 |
1.017 |
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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 |
6.580
|
1.825 |
0.605 |
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Sundry Debtors |
9.596
|
1.652 |
0.498 |
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Cash & Bank Balances |
7.546
|
0.508 |
0.255 |
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Other Current Assets |
4.764
|
0.079 |
0.000 |
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Loans & Advances |
6.127
|
2.219 |
0.898 |
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Total
Current Assets |
34.613
|
6.283 |
2.256 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
19.911
|
5.752 |
0.606 |
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Provisions |
0.000
|
0.000 |
0.024 |
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Total
Current Liabilities |
19.911
|
5.752 |
0.630 |
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Net Current Assets |
14.703
|
0.531 |
1.626 |
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MISCELLANEOUS EXPENSES |
0.289 |
0.432 |
0.577 |
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TOTAL |
36.000 |
6.016 |
3.963 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
Sales Turnover |
|
98.154 |
27.433 |
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Other Income |
|
0.262 |
0.035 |
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Total Income |
|
98.416 |
27.468 |
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Profit/(Loss) Before Tax |
|
1.742 |
1.022 |
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Provision for Taxation |
|
0.786 |
0.286 |
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Profit/(Loss) After Tax |
|
0.956 |
0.736 |
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Total Expenditure |
|
96.674 |
26.446 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.97
|
2.68 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
1.77
|
3.73 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.13
|
9.02 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.29 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.51
|
1.09 |
1.39 |
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Current Ratio (Current Asset/Current Liability) |
|
1.74
|
2.32 |
3.58 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
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Corporate
identity number of the company |
U64202MH2004PTC147219 |
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Name of the
company |
MOBILE MAGIC
PRIVATE LIMITED |
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Address of the registered
office or of the principal place of
business in India of the company |
1st Floor, Chawan Hardware Building, Opposite Dena Bank,
WHC Road, Dharampaeth, Nagpur – 440 010, Maharashtra, India |
|
This form is for |
Creation of
Charge |
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Type of charge |
Hypothecation |
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Particular of
charge holder |
UCO Bank,
Somalwar Bhawan, 1st Floor, Mount Road, Extn. Branch, Nagpur-440
001, Maharashtra, India E-Mail: ro.nagpur@ucobank.co.in |
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Nature of instrument
creating charge |
· Agreement relating term loan · Hypothecation of goods to secure a demand cash credit |
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Date of
instrument Creating the charge |
24.08.2006 |
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Amount secured by
the charge |
Rs. 2.250
millions |
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Brief of the principal
terms an conditions and extent and operation of the charge |
Term Loan (Rs.
2.250 millions ) Margin: 25% Interest: 12% p.a
on monthly rest subject to changes as per RBI/ Bank guidelines from time to
time Repayment : To be
repaid in 60 EMI of Rs. 0.051 million per month commencing from September
2006 The charge
operates as a security for due repayment of the said Term Loan along with
interest, Compound interest, premia on prepayment , costs, charges, and all
other moneys by the company to UCO Bank in terms of loan documentations. |
|
Description of
the property charged indicating whether it is a charged on |
· Plant and Machinery · Vehicles · Furnitures and Fittings |
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Particulars of
the property charged |
Hypothecation of the
company’s fixed assets, i.e, Furnitures, Fixtures, Machineries, Spares and
all other fixed assets interiors situated at 41 A, Leela House, First, Second
Floor, North Ambazari Road, Nagpur, on First charge basis. |
|
Corporate identity
number of the company |
U64202MH2004PTC147219 |
|
Name of the
company |
MOBILE MAGIC
PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
Leela House, 41 — A, Opposite Dharampeth, Science College North,
Ambazari Road, Nagpur – 440 010, Maharashtra, India |
|
This form is for |
Modification of
charge |
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Type of charge |
Immovable
Property |
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Particular of
charge holder |
Bank of India, Main
Branch, Kingsway, Nagpur – 440 001, Maharashtra, India E-Mail: sujaramu1@rediffmail.com |
|
Nature of
instrument creating charge |
Equitable
mortgage |
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Date of
instrument Creating the charge |
13.07.2007 |
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Amount secured by
the charge |
Rs. 35.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : 0.25% below bOI PLR, with minimum 13.00% charged at
monthly rests or at such other rates as may be notified to them from time to
time. Terms of Repayment : Repayable on
Demand Margin : Stocks : 25% Finished Goods :
25% Book Debts: 40% Extent and Operation of the charge : First charge by way
of Equitable mortgage by deposit of original title deeds of the immovable
properties comprising land and building. |
|
Short Particulars
of the property charged |
First charge by
way of Equitable mortgage by deposit of original title deeds of the immovable properties comprising land and
building apartment No. 101 and 102 on the first Floor at NIT Plot No. 66
“Leela Vista , NMC House No. 311/B/66, C S No. 1283, Sheet No. 81, Mouza –
Lendhra , Bajaj Nagar, West high Court road, Nagpur admeasuring built up area
of 3353 Sq.fts owned by Mobile Magic Private Limited bounded by : East : Road West : Plot 79
and 80 North : Plot No.
65 South : Plot No.
67 |
|
Particulars of
the present modification |
The Total Cash Credit
Limit of Rs. 35.000 millions secured by hypothecation of movable goods and
book debts is additionally secured by way of equitable mortgage by deposit of
title deeds. |
WEBSITE DETAILS:-
Company Profile
Subject story began in 2003 as three young minds from
Nagpur came together to ride the mobile revolution sweeping India. The idea was
to set up a large chain of stores for mobile phones and accessories across the
length and breadth of the country. The concept was revolutionary, but the idea
was met with scepticism with people doubting its success. But the trio didn’t
lose heart for they had the passion and wanted to prove the sceptics wrong.
That’s how the first Mobile Magic store was launched. And in the last four
years, they haven’t looked back ramping up the network of stores at a breath
taking pace. Today, Subject is a one stop shop for all mobile phones and
accessories. And the story has just begun. Their endeavour is to give world
class products and services under one roof. At the company, they are striving
to become India’s largest retail chain for mobile phones and accessories.
Business Model:
The expansion strategy envisaged by subject comprises
a mix of franchisee and company owned retail outlets. These outlets are spread
across major metros, Tier II and Tier III cities across India. From Mobile
phones to accessories, ringtones to download and software — Subject stores
takes care of the needs at an affordable price. Providing value for money to their
customers is one of the corner stone of their business. Profitability from the
business comes from high volume and maintaining a high standard on quality.
MANAGEMENT TEAM:-
The dream to create
India’s biggest chain of mobile and accessories retail is been nurtured by
professionals who have proven and impeccable track record. The Board of
Directors comprise of experienced professionals with extensive stints in the
field of tele-communications, mobile telephony, finance and marketing. It is
this talent pool which is the brain behind Mobile Magic’s aggressive expansion
and partnerships with manufacturers, suppliers and vendors.
Mr. Vijay Singh -
CEO
Vijay Singh is the
CEO of Subject and the brain behind the Subject concept. Vijay Singh combines
his dynamism and extensive knowledge of managing large business. A first
generation entrepreneur, Vijay Singh managed Nokia distributorship business for
a decade before when the entrepreneurial bug bit him. That’s when Subject came
into being. Under his able leadership, Subject has clocked an impressive growth
and continues its march towards the objective.
Mr. Vivek Palod - Director
Vivek Palod is the
director at the company and is responsible for marketing, distribution and communications.
A hardcore marketing professional with an immense energy and zest, Vivek Palod
is organised, focussed on the end objective. With more than a decade of
experience in telecom, Vivek Palod is the man behind the aggressive expansion
of Subject across India. It is to his credit that Subject network has moved
from three outlets in the first year to more than 50 outlets in the third year.
Mr. Ravi Kedia , Director
An astute
businessman with an indepth knowledge and understanding of banking and finance,
Ravi Kedia takes care of all the financial and legal aspects of the business. A
seasoned strategist and negotiator, Ravi Kedia has immense expertise in
negotiating with large multinational companies for large value contracts. Ravi
Kedia has been instrumental in clinching the best deal for the company. Under
his able guidance the company's profitability has seen an impressive growth.
His astute understanding enables him to put ideas into action.
Franchisees Opportunity
Subject is the
Largest and only chain of Mobile Phone Supermarkets in India.
They are looking at
an aggressive expansion of their retail network and therefore seek ambitious
business partners who are willing to innovate, invest and excel in what is a
mutually beneficial relationship. They offer franchisees of Subject on very
attractive terms and conditions with complete sales and advertising support to
them. In addition, the franchisee staffs are thoroughly trained by us for sales
service. This works as an additional source of revenue for the franchisee.
Some key highlights of their business model:
Sales Related Activities:-
The company outlets
have over a 100 types (models) of mobile handsets (GSM and CDMA) on sale across
all the brands. MOGO Accessories (Batteries, Chargers, Colour Covers, Bluetooth
Headsets, Memory Cards etc.) and enhancements (stereo headset kit, fun cameras,
car kits, etc.) for all these handsets are imported and sold with nationwide
Subject Warranty. Pre-paid and Post-paid Connections of all the six service providers
are offered to the customers for them to be able to choose suitable service
provider.
Non-Sales Related Activities :-
The outlets are
staffed with qualified engineers trained at their own Mobile Magic Institute of
Technology (MMIT) to service and repair (hardware and software related) all the
handsets across all the brands with authorization from Motorola and others. To
take care of mobile savvy people they have a dedicated application and
downloads professional who can download the latest song or movie or software in
any multimedia phone – this service is a huge success! Hungama Mobile,
Indiagames, Soundbuzz are their partners.
The host of services
on offer is the secret behind the success of Subject stores all over India in
such a short span of time. The youth is an important target audience for us and
the application and download counter has become a youth hangout corner at each
and every Subject outlet.
Awards
The “Best Retail Service-
Design Award” – Subject has been awarded the VM and RD Retail A
Yet another feather in the cap - The “Best Retail Service – Design Award”
Retailing in India is growing by leaps and bounds. More and more international
retail chains are looking at the Indian market and a chance to grab a pie of
the market place. In this crowd, one brand which has been slowly make a niche
for itself and has become a brand of repute is Mobile Magic.
After winning the
“Best Concept of the Year - 2006” award, SUBJECT has been awarded the VM and RD
Retail Award by Pantaloon Retail (India) Ltd in the “Best Retail Service –
Design Award” category at the “POP Asia – 2007” convention held at Pragati
Maidan, New Delhi on 3rd. February, 2007.
The award is aimed
at encouraging designers and the retail industry towards “Outstanding Design
Contributions”. Subject the fastest growing retail chain of exclusive mobile
phone supermarkets, is in the forefront of providing the best ambience to its
customers when they shop at their showrooms.
Walk into a subject showroom and experience the magic of buying a mobile of the
choice.
Subject has been awarded as the “Concept of the year” by the Franchisee India
Foundation on 3rd Dec at New Delhi
Mobile Magic Institute of Technology
In India, the
telecom sector is growing at a scorching pace with millions of subscribers
added in a single month to an already existing base of 150 million mobile phone
users. The rapid growth of mobile telephones in India is now matching the
growth in China. Keeping in mind the need for trained technical staff to
service the huge customer base, Subject has launched a pioneering initiative —
the Mobile Magic Institute of Technology (MMIT). MMIT imparts training to
hundreds of young service engineers in the latest mobile technology. The
trained personnel is Mobile Magic’s humble contribution towards not only its
customers, but also the development of the segment at large.
MMIT guarantees 100
% placement by giving the expertise in GSM/CDMA expert. MMIT offers a course
which is benched marked against global teaching standards. MMIT offers not only
technical training, but also fosters a positive mindset which helps nurture a
sense of entrepreneurship.
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.46.94 |
|
UK Pound |
1 |
Rs.85.57 |
|
Euro |
1 |
Rs.67.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
|
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 |
|