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MIRA INFORM REPORT

 

 

Report Date :

12.04.2011

 

IDENTIFICATION DETAILS

 

Name :

IMATION (INDIA) PRIVATE LIMITED

 

 

Registered Office :

H-10 (Basement), Jangpura Extension, New Delhi – 110 014

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

03.12.1997

 

 

Com. Reg. No.:

55-090971

 

 

CIN No.:

[Company Identification No.]

U30009DL1997PTC090971

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELI02746C/ DELI03304A/ DELI04573C

 

 

PAN No.:

[Permanent Account No.]

AAACI2981F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Magnetic and Optical Removable Data Storage Products.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (17)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company is under severe pressure. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings on a secured trade terms and conditions. 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. Kiran S. Nair

Designation :

Director

Contact No.:

91-11-40576290

Date :

11.04.2011

 

 

LOCATIONS

 

Registered Office/ Factory :

H-10 (Basement), Jangpura Extension, New Delhi – 110 014, India 

E-Mail :

spchopra@airtelmail.in

 

 

Branch Office :

413, 4th Floor, Elegance Tower, Plot No.8, District Centre, New Delhi – 110 025, India

Tel. No.:

91-11-40576290

Fax No.:

91-11-40576294

Area :

1000 sq ft (Approximately)

Location :

Owned

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. Frank Paulinus Samson

Designation :

Director

Address :

Flat No.313, 3 BR, Block B, Plot No.318-1203, Ali Ahmed Khalfan, Rawdat Al Karama, Karama, Dubai 500289

Date of Birth/Age :

19.08.1955

Date of Appointment :

29.04.2009

Date of Ceasing :

01.03.2011

DIN No.:

02625421

 

 

Name :

Mr. Joseph Vincent Gote

Designation :

Director

Address :

1182BJ, Prinseslrenelaan 3, Amstelveen, Netherlands

Date of Birth/Age :

22.04.1956

Date of Appointment :

29.04.2009

DIN No.:

01118953

 

 

Name :

Mr. Brian Joseph Plummer

Designation :

Director

Address :

1A, Lady Hill Road, # 01-13, Shangri-La Residences Singapore 258685

Date of Birth/Age :

31.08.1955

Date of Appointment :

02.09.2009

DIN No.:

02759972

 

 

Name :

Mr. Riyaz Kundathil Abdulla

Designation :

Director

Address :

18/3, Villa Emirates Hill, Fourt Spring, 8, Dubai United Arab Emirates 61375

Date of Birth/Age :

18.04.1973

Date of Appointment :

22.09.2009

DIN No.:

02772429

 

 

Name :

Mr. Thomas William Foyer

Designation :

Director

Address :

6824, Valley View Road, Edina, United States of America 55439

Date of Birth/Age :

15.12.1953

Date of Appointment :

29.04.2009

Date of Ceasing :

11.11.2009

DIN No.:

01118988

 

 

Name :

Mr. Kum Fui Yee

Designation :

Director

Address :

APT BLK 608, Choa Chu Kang Street, 62 # 03-97, Singapore 680608

Date of Birth/Age :

28.11.1970

Date of Appointment :

30.09.2010

DIN No.:

03249539

 

 

Name :

Mr. Kiran Sasidharan Nair

Designation :

Director

Address :

B-106, Sector 44, Noida – 201 301, Uttar Pradesh, India

Date of Birth/Age :

09.05.1977

Date of Appointment :

30.09.2010

DIN No.:

03258148

 

 

KEY EXECUTIVES

 

Name :

Mr. Suraj Prakash Oberoi

Designation :

Secretary

Address :

59/6, Old Rajinder Nagar, New Delhi – 110 060, India

Date of Birth/Age :

03.02.1931

Date of Appointment :

01.09.2006

Date of Ceasing :

01.12.2009

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

 

Names of Shareholders

 

 

No. of Shares

Imation Asia Pacific Pte Limited, Singapore

 

2270999

Imation Corporation, USA

 

1

Total

 

2271000

 

As on 30.09.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Magnetic and Optical Removable Data Storage Products.

 

 

Products :

Magnetic and Optical Removable Data Storage Products

 

 

Terms :

 

Selling :

Cash and Credit (30/ 60/ 90 days)

 

 

Purchasing :

Cash and Credit (30/ 60/ 90 days)

 

 

GENERAL INFORMATION

 

Customers :
  • End Users
  • OEM’s
  • Others (Croporates)

 

 

No. of Employees :

30 (Approximately)

 

 

Bankers :

Not Available

 

 

Facilities :

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Short Term

 

 

From Others

2.700

2.700

Total

2.700

2.700

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Lovelock and Lewes

Chartered Accountants

Address :

Building 8th, 7th and 8th Floor, Tower B, DLF Cyber City, Gurgaon – 122 002, Haryana, India

 

 

Holding Company :

Imation Asia Pacific Pte Limited, Singapore

 

 

Ultimate Holding Company :

Imation Corporation, USA

 

 

Companies under common control :

  • Imation Singapore Pte. Limited
  • Imation Europe B.V.
  • Imation Middle East FZE

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2271000

Equity Shares

Rs.10/- each

Rs.22.710 millions

 

 

 

 

 

(2270999 Equity Shares are held by the holding company Imation Asia Pacific Pte. Limited and 1 share held by Imation Corporaiton, USA, the ultimate holding company)


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

22.710

22.710

22.710

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

2.803

4] (Accumulated Losses)

(33.512)

(19.329)

0.000

NETWORTH

(10.802)

3.381

25.513

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

2.700

2.700

2.700

TOTAL BORROWING

2.700

2.700

2.700

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

(8.102)

6.081

28.213

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3.210

4.068

4.007

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

3.257

2.793

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
29.665

34.279

32.639

 

Sundry Debtors
42.059

31.133

42.507

 

Cash & Bank Balances
48.822

3.885

25.040

 

Other Current Assets
0.029

0.025

0.020

 

Loans & Advances
9.949

17.606

10.048

Total Current Assets
130.524

86.928

110.254

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

140.786

86.262

85.539

 

Other Current Liabilities
0.667

1.606

1.891

 

Provisions
0.383

0.304

1.411

Total Current Liabilities
141.836

88.172

88.841

Net Current Assets
(11.312)

(1.244)

21.413

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

(8.102)

6.081

28.213

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

177.593

223.747

243.488

 

 

Other Income

15.468

0.114

9.161

 

 

TOTAL                                     (A)

193.061

223.861

252.649

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Sales

170.707

187.632

192.738

 

 

Payments to and provision for employees

7.460

11.405

10.686

 

 

Operating and Other Expenses

25.003

46.059

32.249

 

 

Miscellaneous Expenditure written off

0.000

0.000

0.001

 

 

Prior Period Expenses

0.000

0.000

0.131

 

 

TOTAL                                     (B)

203.170

245.096

235.805

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

(10.109)

(21.235)

16.844

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.222

0.398

0.332

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

(10.331)

(21.633)

16.512

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.595

0.694

1.073

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

(10.926)

(22.327)

15.439

 

 

 

 

 

Less

TAX                                                                  (H)

3.257

(0.195)

4.805

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(14.183)

(22.132)

10.634

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(19.329)

2.803

(7.936)

 

 

 

 

 

 

Adjustment for Revised AS-15 (Transitional Provisions)

--

--

0.105

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(33.512)

(19.329)

2.803

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Purchase of goods

132.125

136.397

150.649

 

TOTAL IMPORTS

132.125

136.397

150.649

 

 

 

 

 

 

Earnings Per Share (Rs.)

(6.25)

(9.75)

4.68

 

Expected Sales (2010-2011): Rs.200.000 millions

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(7.35)
(9.89)

4.21

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(6.15)
(9.98)

6.34

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(8.17)
(24.54)

13.51

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
1.01
(6.60)

0.61

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
(13.38)

26.88

3.59

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.92

0.99

1.24

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

 

 

 

- Due to Micro and Small Enterprises

--

--

--

- Due to Others

140.786

86.262

85.539

 

LEGAL STATUS AND ACTIVITIES:

 

Subject was incorporated on December 3, 1997 as a wholly owned subsidiary of Imation Asia Pacific Pte. Limited, Singapore. The Company initially sought approval to undertake the business of assembling and manufacturing of computer diskettes, magnetic media and software development including export and import and resale, service and maintenance including services on behalf of Imation Asia Pacific Pte. Limited, which was approved by Government of India’s Ministry of industries approval no. F.C.lI.326(97)/240(97) dated 12th June, 1997 and letter dated 27th January, 1998. Further, due to the liberalized policies of Government of India the Company sought the approval of Foreign Investment Promotion Board (FIPB) to undertake importing and wholesale trading of magnetic and optical removable data storage products and the exporting and wholesale selling of magnetic optical removable data storage products sourced in India which was approved by FIPB vide their letter dated 6th September 2004, Pursuant to the approval, the Company has commenced wholesale trading activities of the above products in India in the year 2005-06. Further, during the year 2005-06, the Company sought the approval of FIPB to sell its products directly to Industrial/ Institutional customers including governments; their instrumentalities and Public Sector Undertaking in addition to the wholesale trading activities which has been approved by FIPB vide their letter dated 30th November, 2005.

 

GOING CONCERN:

 

In view of the recurring tosses, the Company’s net worth has been fully eroded.

 

However, these financial statements have been prepared on a going concern basis on the strength of the assurance received from the parent company, confirming that it will provide the capital and necessary funding to fund losses and support the growth of the Company.

 

Further, the management is of the view that losses incurred are temporary and considering the future plan for operations and support of the holding company, it is hopeful of improved profitability consequently leading to improvement in its financial position.

 

FIXED ASSETS:

 

·         Leasehold Improvements

·         Computers

·         Vehicles

·         Office Furniture and Equipments

 

 

 

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.44.20

UK Pound

1

Rs.72.26

Euro

1

Rs.63.90

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

1

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

-

--CREDIT LINES

1~10

2

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

17

 

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

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

-

NB

                                       New Business

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.