MIRA INFORM REPORT

 

 

Report Date :

24.01.2011

 

Note : Given address could not be confirmed.

 

IDENTIFICATION DETAILS

 

Name :

ARCHIES LIMITED

 

 

Registered Office :

Plot No. 191 F, Sector 4, IMT Manesar, Gurgaon-122050, Haryana.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

22.05.1990

 

 

Com. Reg. No.:

11-041175

 

 

CIN No.:

[Company Identification No.]

L36999HR1990PLC041175

 

 

Legal Form :

Public Limited Liability Company. The Companies shares are listed to the Stock Exchange.

 

 

Line of Business :

The company is engaged in the business of retailing of gift items, greeting cards, perfumes and stationery items.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 3400000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual 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. Vikas Tak

Designation :

Secretary

Contact No.:

91-11-41412222

Date :

20.01.2011

 

LOCATIONS

 

Registered Office :

Plot No. 191 F, Sector 4, IMT Manesar, Gurgaon-122050, Haryana, India

Tel. No.:

91-11-41412222

E-Mail :

vikas.tak@archiesonline.com

helpdesk@archiesonline.com

Website :

www.archiesonline.com

 

 

Corporate Office :

C-113, Naraina Industrial Area, Phase – I, New Delhi – 110028, INDIA

Tel. No.:

91-11-41410000

 

DIRECTORS

 

As On : 31.03.2010

 

Name :

Mr. Anil Moolchandani

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Promod Arora

Designation :

Joint Managing Director

 

 

Name :

Mr. Jagdish Moolchandani

Designation :

Executive Director

 

 

Name :

Mr. Vijayant Chhabra

Designation :

Executive Director

 

 

Name :

Mr. Rohinton H. Kanga

Designation :

Director

 

 

Name :

Mr. Sunil Bhel

Designation :

Director

 

 

Name :

Mr. Arun Singhal

Designation :

Director

 

 

Name :

Mr. Ajit Ganpatlal Shah

Designation :

Director

 

KEY EXECUTIVES

 

Name :

Mr. Vikas Kumar Tak

Designation :

Secretary

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2010

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of promoters and Promoter Group

 

 

1. Indian

 

 

Individuals / Hindu Undivided Family

20859600

61.75

Sub Total (A) (1)

20859600

61.75

 

 

 

(B) Public Shareholding

 

 

1. Institutions

 

 

Insurance Companies

75000

0.22

Foreign Institutional Investors

2000

0.001

Any Others (Specify)

500

--

Foreign Financial Institutions

500

--

Sub Total (B) (1)

77500

0.23

 

 

 

2. Non Institutions

 

 

Bodies Corporate

5031798

14.90

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

5685114

16.83

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

1336187

3.96

Any Others (Specify)

789801

2.34

Trusts

12500

0.04

Directors and their Relatives and Friends

40875

0.12

Non Resident Indians

131427

0.39

Clearing Members

421898

1.25

Hindu Undivided Families

182501

0.54

Foreign Nationals

600

--

Sub Total (B) (2)

12842900

38.02

Total Public Shareholding (B)

12920400

38.25

Total (A) + (B)

33780000

100.00

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in the business of retailing of gift items, greeting cards, perfumes and stationery items.

 

 

Products :
  • Gift Items
  • Stationery Items
  • Greeting Cards

 

GENERAL INFORMATION

 

No. of Employees :

Not Divulged by the management.

 

 

Bankers :
  • Citi Bank N. A.
  • Indusland Bank Limited
  • ICICI Bank Limited

 

 

Facilities :

 

SECURED LOAN

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Cash Credit, Buyer’s Credit, Packing Credit from Scheduled Bank

33.738

5.020

Term Loans – Indusland Bank Limited

9.512

27.499

Term Loans – ICICI Bank Limited

103.210

135.424

Vehicle Loans

 

 

- Banks

2.054

3.166

- Others

1.060

0.704

Total

149.574

171.813

 

Note : Amount Repayable within One Year

  1. Against hypothecation of Stock, Book Debts and charge on Plant and Machinery, both present and future except assets specifically hypothecated, on pari-passu basis with Citi Bank N. A., ICICI Bank Limited and Indusland Bank Limited.
  2. Against hypothecation of exclusive charge over specific Machinery and Movable Fixed Assets.
  3. Against hypothecation of exclusive charge over specific Assets.
  4. Personal Guarantee of Mr. Anil Moolchandani, CMD and Mr. Jagdish Moolchandani, ED.
  5. against hypothecation of Vehicle.

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Uberoi Sood and Kapoor

Chartered Accountant

 

 

Associates/Subsidiaries :
  • Empire Greetings and Gifts Private Limited
  • M/S Rattanjee
  • Andani Corporation

 

CAPITAL STRUCTURE

 

As On : 31.03.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

Rs. 10/- each

Rs.150.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6756000

Equity Shares

Rs.10/- each

Rs.67.560 millions

 

Forfeited Shares

 

Rs. 0.002 millions

 

Total

 

Rs.67.562 millions

 

Note : out of above

  1. 21428 Equity Shares of Rs.10/- each were allotted as fully paid-up for consideration other than cash, Pursuant to a contract.
  2. 4125535 Equity Shares of Rs.10/- each were allotted as fully paid-up Bonus Shares by Capitalization of Reserve from Share Premium Account.

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

67.562

67.562

67.562

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

801.404

729.191

735.112

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

868.966

796.753

802.674

LOAN FUNDS

 

 

 

1] Secured Loans

149.574

171.813

194.380

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

149.574

171.813

194.380

DEFERRED TAX LIABILITIES

61.773

59.331

55.915

 

 

 

 

TOTAL

1080.313

1027.897

1068.919

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

529.564

355.573

334.123

Capital work-in-progress

16.218

128.655

109.270

 

 

 

 

INVESTMENT

0.000

5.379

74.468

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
464.501

441.089

476.686

 

Sundry Debtors
131.115

118.113

94.789

 

Cash & Bank Balances
37.210

37.491

26.644

 

Other Current Assets
97.877

92.305

88.322

 

Loans & Advances
146.632

114.811

132.627

Total Current Assets
877.335

803.809

819.068

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
106.360

105.324

91.486

 

Other Current Liabilities
102.671

87.653

98.606

 

Provisions
133.773

72.542

77.918

Total Current Liabilities
342.804

265.519

268.010

Net Current Assets
534.531

538.290

551.058

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1080.313

1027.897

1068.919

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1562.105

1387.054

1178.958

 

 

Other Income

8.209

9.410

14.886

 

 

TOTAL                                     (A)

1570.314

1394.464

1193.844

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

715.022

654.308

496.184

 

 

Administrative Expenses

529.360

474.746

403.853

 

 

Establishment Expenses

139.377

138.448

122.264

 

 

TOTAL                                     (B)

1383.759

1267.502

1022.301

 

 

 

 

 

Less

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

186.555

128.962

171.543

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

20.150

21.867

17.090

 

 

 

 

 

 

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

166.405

107.095

154.453

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

32.642

30.195

27.276

 

 

 

 

 

Less

Extraordinary Items

0.000

58.261

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

133.763

18.639

127.177

 

 

 

 

 

Less

TAX                                                                  (H)

45.742

29.506

45.155

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

88.021

(10.867)

82.022

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

10.000

0.000

70.000

 

 

Dividend

13.512

0.000

0.000

 

 

Tax on Dividend

2.296

0.000

0.000

 

BALANCE CARRIED TO THE B/S

62.213

(10.867)

12.022

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

35.075

41.058

23.789

 

TOTAL EARNINGS

35.075

41.058

23.789

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

9.335

15.635

15.771

 

 

Artwork and Designs

2.783

1.994

3.173

 

 

Capital Goods

4.379

0.381

0.000

 

 

Finished Goods

283.398

193.605

143.400

 

TOTAL IMPORTS

299.895

211.615

162.344

 

 

 

 

 

 

Earnings Per Share (Rs.)

13.03

(1.61)

12.22

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

30.06.2010

 

30.09.2010

 

1st Quarter

2nd Quarter

Net Sales

347.100

439.470

Total Expenditure

320.730

380.980

PBIDT (Excl OI)

26.370

58.490

Other Income

0.240

3.690

Operating Profit

26.610

62.180

Interest

2.220

4.980

Exceptional Items

0.000

0.000

PBDT

24.390

57.200

Depreciation

10.190

11.160

Profit Before Tax

14.200

46.040

Tax

4.540

13.320

Provisions and contingencies

0.000

0.000

Profit After Tax

9.660

32.720

Extraordinary Items

0.000

0.000

Prior Period Expenses

0.000

0.000

Other Adjustments

0.000

0.000

Net Profit

9.660

32.720

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
5.61

(0.78)

6.87

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.56

1.34

10.79

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
9.51

1.61

11.03

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15

0.02

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.64

0.62

0.65

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.56

3.03

3.06

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

 

(Rs. In Millions)

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

 

 

 

Amount due to Micro and Small Enterprises

0.009

0.147

0.000

Amount due to Others

106.351

105.177

91.486

Total

106.360

105.324

91.486

 

PERFORMANCE REVIEW

 

During the year the Company recorded a turnover of Rs. 1562.105 millions as compared to Rs.1387.054 millions in the previous financial year, up by 12.62%. The Net Profit for the same period stands at Rs. 88.021 millions at against Net Loss of Rs. (10.867) millions.

 

The sale of greeting cards during the current year stands at Rs.461.030 millions (in value) and 30.964 millions Nos. (in volume) as against Rs. 442.972 millions (in value) and 39.283 millions Nos. (in volume) in the previous year, which is up by 4.08%.

 

The gifts sale has increased to Rs. 900.440 millions as compared to Rs. 769.369 millions in the previous year, which is up by 17.03%.

 

 The turnover of the company has increased due to the following factors.

 

 - The Turnover of the Gift segment was Rs. 900.440 millions as compared to Rs. 769.369 millions, up by 17.03%.

 

 - The Turnover of the Greeting card segment was Rs. 461.030 millions as compared to Rs. 442.972 millions, up by 4.08%.

 

 - The stationery sale was Rs. 188.313 millions as compared to Rs. 158.176 millions in the previous year, up by 19.05%.

 

 The Company owned / managed stores have significantly contributed towards the growth of turnover and the profits.

 

MANAGEMENT DISCUSSION & ANALYSIS REPORT

 

This report contains statements that the Company’s beliefs, may be considered to be “Forward Looking Statements’ that describe Their objectives plans or goals. All these forward looking statements are subject to certain risks and ‘uncertainties, including, but not limited to, government action, local’, political or economic developments, changes in legislation, technology risks, risk inherent in the Company’s growth strategy, dependence on certain suppliers arid other factors that could cause our actual results to differ materially ‘ram those contemplated by the relevant forward looking statements.

 

The forward looking statements included in this report are made only as on the dale of this report and they undertake no obligation to publicly update these forward looking statements to reflect subsequent events or circumstances.

 

 

INDUSTRY STRUCTURE AND DEVELOPMENT

 

The business of Greetings & Gifts is referred to as ’Social Expressions’ Industry’ worldwide. This industry is still unorganized in India. There are number of small players whose operations are restricted in their respective regions. Besides them, there are very few serious players having nationwide presence.

 

Greeting Curds are more of a fashion than culture in India end the Industry is driven by retailers and distributors rather than consumers.

 

The Company, which pioneered the concept in the Indian market, is the leader with more than, 50% snare of the organized sector.

 

The emergence of e-greetings arid SVS has affected the growth of the greeting cards business in general, However, this segment has the potential to bounce hack in the years to come.

 

The Company has developed into a gifting solution destination for the consumers and has enhanced its reach with opening of retail outlets in various cities in India. As on 31.03.2010 the Company is having 160 Company owned and operated retail outlets and is planning to opens more stores.

 

This business is based on sentiments both attire micro and macro level.

 

OPPORTUNITIES AND THREATS

 

All growing businesses thrive on opportunities. The Company’s very existing can be traced back to discovering and capitalizing on hitherto unexploited opportunities for us to pursue and we are optimistic that we will be able to achieve greater heights and set standards for others to follow.

 

Organized retailing has already taken its first step in India arid number of shopping malls have come up ‘different parts of the country. A huge retail space is being created across the country end this offers a good opportunity for the Company, The retail industry has shown tremendous growth in last few years and many well known Business Houses have entered this segment. But due to scars of slowdown last year arid European countries under economic stress there is fear all around but we believe that the economies around the world stabilizing, They will see a bounce back in the near future.

 

Their HelpAge and CRY card divisions are geared up to increase their share in the Corporate Card Segment. A Huge retail space is being created in India with large format stores such as Hyper Markets, super departmental stores. There is an opportunity available for them to join hands with these large format stores for selling theri products through these kinds of stores, which have tremendous dedicated footfalls. Their industry is already a part and parcel of such formats in the West.

 

Modern Trade is another area where they have ventured and are hopeful that the returns will improve in the years to come. Archies may go for opening at large format stores by tying up with like-minded retailers with synergetic products.

 

Overseas markets offer vast opportunities, which are to be explored. Which they are hopeful that they will be to shape their future, yet we are alive to the threats that we face and are geared to over come them. Technological changes like e-greetings, SMS teat messaging service pose a threat to our greeting raids business. Your Company nut already initiated various measures to combat these developments.

 

PRODUCT WISE PERFORMANCE

 

The Turnover of the Gift segment was Rs. 900.440 millions during the year under review us compared to Rs. 769.369 millions, last year up by 17.03%. The Gifts segment contributed about 57.65% of the total turnover.

The Greeting Cards sale was Rs. 461.030 millions during the year under review as compared to Rs 442.972 millions during the last year The contribution of greeting curds to the total business now stands at 29.51%. During the year under review’ the sales of Greeting Cards increased by 4.08% in value terms.

The Stationery items sale was Re. 188.313 millions during the year under review as compared to Rs. 158.176 millions during the Lust Year up by 19.05%. The contribution of Stationery ferries was about 12.O5% of the total turnover as compared to 11.40% during the previous year.

 

OUTLOOK

 

In spite of growth in Greeting Cards business it is still under pressure. But the company is working on various strategies to counter the negative effects. They are quite confident that Greeting Cards business should show further positive signs in the coming years.

 

The turnover of the Gifts segment has been higher than the Greeting Card segment During the year under review the Gift segment has shown a growth of t7.03%, The Company ha a positive outlook in the gift segment and expects a good growth in the future.

 

The Stationary segment is also expected to perform well.

 

The company’s efforts to open company owned/managed stores will continue in the upcoming shopping mails and high streets across the country on selective basis.

 

The main concentration is on the core business of Greeting Cards, gifts arid retail and every effort of the Company is aimed at maximizing the profitability of the company.

 

The company has plans to open additional 80 stores is various shopping malls and high streets across Ire country in phased manner over a period of nest 3 years. The management expects that the Company will benefit only if opens renal stores in selective malls and also open shops on high streets with premium locations.

 

The Company has plans to expand its business overseas.

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATING PERFORMANCE

 

The Company recorded a turnover of Rs. 156.105 millions tar the financial year 2009-10 as compared to Rs. 1387.054 millions in the previous year up by 12.62%. The sale of Gifts was up by 17.03% and Greeting Cards sale was up by around 4.08%.

 

Invertors as at 31st March 2010 stands at Rs. 464.501 millions as against Rs. 441.089 millions during previous year.

 

Debtors as at 31st March 20 10 stand at Rs. 131.115 millions as against Rs. 118.113 millions during the previous year.

 

Cost of consumption of their main raw material (i.e. paper and paperboard) was Rs. 54.13 per Kg is financial year 2009-10 as against Rs. 51.70 per Kg in the previous year.

 

 

 

 

 

UN-AUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 30TH JUNE, 2010

 

 (Rs. In millions)

Particulars

Half Year Ended

30.06.2010

(unaudited)

 (a) Net Sales

345.060

 (b) Other Operating Income

2.043

Total Income

347.103

 2. Expenditure

 

a. Increase(-) /Decrease(+) in Stock in trade and W.I.P.

16.280

b. Consumption of Raw-Materials

33.692

c. Purchase of Traded Goods

79.306

d. Employees Cost

50.575

e. Depreciation

10.187

f.  Other Expenditure

90.368

g. Rent

50.506

h. Total

330.914

3. Profit(+)/ Loss(-) from Operations before other Income Interest and Exceptional Item(1-2)

16.189

4. Other Income

0.236

5. Profit(+)/ Loss(-) before Interest and Exceptional Item

16.425

6. Interest

2.220

7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6)

14.205

8. Exceptional Items

0.000

9. Profit(+)/ Loss (-) from ordinary activities  before Tax (7-8)

14.205

10. Tax Expenses

4.545

11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10)

9.660

12. Extraordinary Items (Net of Tax Expense Rs.________)

0.000

13. Net Profit (+)/ Loss(-) for the period (11-12)

9.660

14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share)

67.560

15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year

 

16. Earning per Share (EPS)

 

a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not  annualised)

1.43*

17. Public Shareholding

 

Number of Shares

2545000

% of Share holding

37.67

18. Promoters and promoter group Shareholding

 

a) Pledged/Encumbered

Nil

 -   Number of shares

Nil

 -   Percentage of shares (as a % of the total shareholding  of promoter and promoter group)

Nil

-    Percentage of shares (as a % of the total share capital  of the company)

 

b) Non-encumbered

 

 -   Number of shares

4211000

 -   Percentage of shares (as a % of the total shareholding     of promoter and promoter group)

100

-    Percentage of shares (as a % of the total share capital   of the company)

62.33

 

Note : * Not annualized

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 (Rs. In millions)

PARTICULARS

30.06.2010 UNAUDITED

1. Segment Revenue (Net Sales)

 

a) Greeting Cards

87.950

b) Stationery Items

38.964

c) Gifts

215.946

d) Others

2.200

Net Sales

345.060

2. Segment Results (Profit/Loss)

 

Before Tax an Interest

 

a) Greeting Cards

17.550

b) Stationery Items

4.029

c) Gifts

17.965

d) Others

0.104

Total

39.648

Less

 

i) Interest

2.220

ii) Deprecation

10.187

iii) Other un-allocable expenditure (net of unallowable income)

13.036

Total Profit Before Tax

14.205

3. Capital Employed (Segment Assets less Segment Liabilities)

1137.586

 

Notes :

 

  1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 31st July 2010.
  2. Due to the nature of business and common manufacturing facilities for various segments, a reasonable allocation of Capital Employed to various segments in currently not practicable.
  3. Previous year’s figures have been rearranged and regrouped, wherever necessary.
  4. The information on investors complaint pursuant to clause 41 of the Listing Agreement for the quarter ended 30th June, 2010. Opening Balance: Nil, Received during the quarter.1, Resolved during the quarter 1 : Closing Balance : Nil.
  5. The Company has retained its short term credit rating as A1 and long term credit rating as LA assigned by ICRA.

 

FIXED ASSETS

 

  • Computers
  • Office Equipments
  • Machinery
  • Furniture and Fittings
  • Vehicles
  • Factory Building
  • Pollution Control Equipments
  • Land

 

 

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.45.70

UK Pound

1

Rs.72.78

Euro

1

Rs.61.65

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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.