MIRA
INFORM REPORT
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Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
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Name : |
SANGEETHA MOBILES PRIVATE LIMITED |
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Registered
Office : |
No. 47, |
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Country : |
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Financials (as
on) : |
31.03.2009 |
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Date of
Incorporation : |
21.08.2008 |
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Com. Reg. No.: |
08-047525 |
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CIN No.: [Company Identification
No.] |
U51909KA2008PTC047525 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRS30835A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Trader and Distributors of Mobiles and Phones |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 99500 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a successor of a partnership concern M/s Sangeetha. It is an established company having moderate track. Trade relations are
reported as fair. Business is active. Payments are reported to be slow but
correct. The concern can be considered for business dealings with some caution.
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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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
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Name : |
Mr. Narayan Sharma |
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Designation : |
Accounts Manager |
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Contact No.: |
91-9900297054 |
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Date : |
07.01.2011 |
LOCATIONS
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Registered Office : |
No. 47, |
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Tel. No.: |
91-80-26607993 / 94 |
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Mobile No.: |
91-9900297054 (Mr. Narayan Sharma) |
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Fax No.: |
91-80-26607993 |
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E-Mail : |
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Website : |
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Area : |
3000 sq.ft |
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Location : |
Rented |
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Head Office : |
37, |
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Location : |
Owned |
DIRECTORS
AS ON 30.12.2009
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Name : |
Mr. Lakku Subhash Chandra Reddy |
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Designation : |
Director |
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Date of Birth/Age : |
21.06.1966 |
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Date of Appointment : |
21.08.2008 |
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Name : |
Mrs. Bharathi Lakku |
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Designation : |
Director |
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Date of Birth/Age : |
15.04.1969 |
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Date of Appointment : |
21.08.2008 |
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Name : |
Mr. Lakku Penchala Narayana Reddy |
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Designation : |
Director |
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Date of Birth/Age : |
26.10.1943 |
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Date of Appointment : |
21.08.2008 |
KEY EXECUTIVES
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Name : |
Mr. Narayan Sharma |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 10.12.2009
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Names of Shareholders |
No. of Shares |
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Mr. Lakku Subhash Chandra Reddy |
3200000 |
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Mrs. Bharathi Lakku |
600000 |
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Mr. Lakku Penchala Narayana Reddy |
600000 |
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Mr. P V Bhaskar Reddy |
60000 |
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Ms. Bhuvaneshwari |
60000 |
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Mr. M Srinivasa C V |
40000 |
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Mr. C S Rajendran |
40000 |
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Total |
4600000 |
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AS ON 30.12.2009
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Trader and Distributors of Mobiles and Phones |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
400 Approximately |
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Bankers : |
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Facilities : |
Over Draft Facilities Rs. 50.000 millions Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
C Venkatesulu Chartered Accountant |
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Address : |
391, 9th Cross, 2nd Block, Jayanagar, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 30.12.2009
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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4600000 |
Equity Shares |
Rs. 10 each |
Rs.46.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4600000 |
Equity Shares |
Rs. 10 each |
Rs.46.000 millions |
AS ON 31.03.2009
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs. 10 each |
Rs.20.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
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|
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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20.000 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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4.875 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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24.875 |
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LOAN FUNDS |
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1] Secured Loans |
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50.151 |
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2] Unsecured Loans |
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31.084 |
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TOTAL BORROWING |
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81.235 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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106.110 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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38.866 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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153.775 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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2.603 |
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Other Current Assets |
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59.382 |
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Loans & Advances |
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3.465 |
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Total
Current Assets |
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219.225 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
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142.342 |
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Statutory Dues |
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2.595 |
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Other Current Liabilities and Provisions |
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|
7.044 |
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Total
Current Liabilities |
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151.981 |
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Net Current Assets |
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67.244 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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106.110 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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|
31.03.2009 |
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SALES |
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Sales of Mobiles Handsets and Accessories |
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703.800 |
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Price Competition during the period |
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27.000 |
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Other Income |
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26.800 |
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TOTAL |
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757.600 |
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Less |
EXPENSES |
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Office Expenses |
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Administrative Expenses |
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745.572 |
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Advertising Expenses |
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TOTAL |
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745.572 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
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12.028 |
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Less/ Add |
DEPRECIATION/
AMORTISATION |
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4.849 |
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PROFIT BEFORE
TAX |
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7.179 |
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Earnings Per
Share (Rs.) |
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-- |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2009 |
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PAT / Total Income |
(%) |
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NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.02 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.78 |
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Return on Investment (ROI) (PBT/Networth) |
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0.28 |
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Debt Equity Ratio (Total Liability/Networth) |
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9.37 |
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Current Ratio (Current Asset/Current Liability) |
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1.44 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars
|
31.03.2009 |
|
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|
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For Purchases |
131.079 |
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For Advertisement |
5.464 |
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For Interiors |
4.919 |
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Other Creditors |
0.482 |
|
Out Sources |
0.398 |
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Sundry
Creditors |
142.342 |
Background
The Company was
incorporated on 21 August 2008 as a private imited company under the provisions
of the Companies Act, 1956. Sangeetha Mobile (a partnership) as converted unto
Joint Stock Company as on 21st August 2008. The Company is in
business of distributing mobile phones and accessories.
FINANCIAL RESULTS
During the 7
months period the Company has generated revenue of Rs.757.700 millions ES
detailed hereunder:
Sales of Mobiles
Handsets and Accessories Rs.703.800 millions
Price compensation
Received Rs.
27.000 millions
Other Income Rs. 26.800 millions
This being the first
year of operation the sales achieved by the company is reasonably good when
compare to the competition faced in the retail mobile business in
Company spent a
huge amount on Handset Insurance which they have introduced in
FINANCE:
The Company has
availed cash credit facilities from Kotak Mahindra Bank and relation with the Bank is cordial during the period under
review.
Controls: Sangeetha has implemented mobile specific software called APX. Which has
good control over inventory by tracking the mobile sets by its IMEA numbers
which crucial for mobile retail trade. Given the frequent fluctuation of the
market due to Price Drops and Model
change the soft ware has been developed to suit the retail trade.
FUTURE SCOPE:
Competition in the
mobile retail market is very high. There is a huge potential for the mobile
market hence there are large numbers of national and regional players starting
his business. Most of them have entered directly in to this business without
any retails background. If this is the scenario in the organized sector just
imagine the unorganized sector where a large number of small out lets also
vying for the share in this huge unexplored mobile retail market. There are
very limited national and regional players at present in this trade.
TRADE REFERENCE:
- R K World
Com, Kolkata
- Telemark
Communication (
Fixed Assets:
- Plant and
Machinery
- Motor
Vehicles
- Computers
- Furniture and
Fixtures
FORM 8
|
Corporate
identity number of the company |
U51909KA2008PTC047525 |
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Name of the
company |
SANGEETHA MOBILES PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
No. 47, |
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This form is for |
Modification of
charge |
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Type of charge |
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Particular of
charge holder |
Standard Chartered Bank, 112, Serenity, Koramangala Industrial Area, Email: leena.gangadharan@sc.com |
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Nature of
instrument creating charge |
Hypothecation
Agreement |
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Date of
instrument Creating the charge |
21.09.2010 |
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Amount secured by
the charge |
Rs. 200.000
millions |
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Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest Credit Facility. Interest /
Commission - As agreed by and with the Bank from time to time. Terms of repayment As agreed by and
with the Bank from time to time. Margin As applicable, if
any. Extent and operation of the charge The Bank is
having first charge on the security given by the Company, as described in Sr.
no. 15 below. |
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Short particulars
of the property charged (Including location of the property) |
Hypothecation by
way of first charge on: a) all the stock
in trade both present and future consisting of raw materials, finished goods,
goods in process of manufacturing and other merchandise. b) All the
present and future book debts, o/s moneys receivables, claims and bills. c) all the
movable fixed assets now or at any time hereafter belonging to the Borrowers
at the Borrowers factory or at any other premises. |
|
Particulars of
the present modification |
By present modification,
the existing charge of Rs.150 millions enhanced to Rs.200 millions. |
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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
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--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
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--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 |
|
26 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.