MIRA
INFORM REPORT
|
Report Date : |
09.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
FUTURE AXIOM TELECOM LIMITED (w.e.f. 21.07.2008) |
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Formerly Known
As : |
CONVERGEM COMMUNICATION (INDIA) LIMITED (w.e.f. 27.08.2007) CONVERGEM RETAIL ( |
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Registered
Office : |
Knowledge House, Shyam Nagar, Off |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
07.02.2006 |
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Com. Reg. No.: |
11-159581 |
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Capital
Investment / Paid-up Capital : |
Rs.200.000 millions |
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CIN No.: [Company Identification
No.] |
U52110MH2006PLC159581 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC14105A |
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PAN No.: [Permanent Account No.] |
AACCC7717P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Authorised Distributor and Retailer for Mobile Phones and Accessories.
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No. of Employees
: |
200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 1799000 |
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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 joint venture between Pantaloon Retail ( It is an established company having moderate track. Profitability of the
company appears to be under 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 but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. Shiv Shankar Agarwal |
|
Designation : |
Finance Manager |
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Contact No.: |
91-9811808013 |
|
Date : |
07.05.2011 |
LOCATIONS
|
Registered Office : |
Knowledge House, Shyam Nagar, Off |
|
Tel. No.: |
91-22-66442200/30841300 |
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Mobile No.: |
91-9811808013 (Mr. Shiv Shankar Agarwal) |
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Fax No. : |
91-22-66442222 |
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E-Mail : |
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Website : |
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Area : |
10000 sq ft |
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Location : |
Owned |
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Corporate Office : |
Future Group, 4th Floor, Sector 32, Plot No.82, Gurgaon –
122 001, |
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Tel. No.: |
91-124-4641000 |
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Fax No.: |
91-124-4641001 |
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Email |
DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Chandra Prakash Toshniwal |
|
Designation : |
Director |
|
Address : |
A-603,
'Kanishk', Great Eastern Link, |
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Date of Birth/Age : |
29.09.1966 |
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Date of Appointment : |
07.02.2006 |
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DIN No.: |
00036303 |
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Name : |
Mr. Abdulaziz Mohammed Abdulla Albannai |
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Designation : |
Director |
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Address : |
Abdul Aziz
Mdabdulla B Banai Villa, Nr. A MD Hassan Villa (Villa-02), 363-2A Al Jumeirah
Road, DM-40, Post Box 9266, Dubai |
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Date of Birth/Age : |
09.06.1951 |
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Date of Appointment : |
20.12.2007 |
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DIN No.: |
01908108 |
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Name : |
Mr. Abdullatif Abdulla Ahmad Almulla |
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Designation : |
Director |
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Address : |
Villa DM. 13,
343/53 Street, Al Safa Area, |
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Date of Birth/Age : |
16.10.1967 |
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Date of Appointment : |
05.12.2007 |
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DIN No.: |
01683739 |
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Name : |
Mr. Faisal Abdulaziz Mohamad Albannai |
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Designation : |
Managing Director |
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Address : |
AL Shaikha Hind Bint
Maktoum, W. Sub Meter (Villa-87), Splendour, 353-14C Umsaqaim Area, DM-24,
Post |
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Date of Birth/Age : |
21.03.1973 |
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Date of Appointment : |
20.12.2007 |
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DIN No.: |
01908096 |
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Name : |
Mr. Rakesh Gopikishan Biyani |
|
Designation : |
Director |
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Address : |
304 Jeevan
Vihar, 5, |
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Date of Birth/Age : |
05.04.1972 |
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Date of Appointment : |
15.05.2008 |
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DIN No.: |
00005806 |
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Name : |
Mr. Mayur Kishore Toshniwal |
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Designation : |
Director |
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Address : |
518-A, |
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Date of Birth/Age : |
22.02.1968 |
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Date of Appointment : |
05.12.2007 |
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DIN No.: |
01655776 |
KEY EXECUTIVES
|
Name : |
Mr. Parvesh Kumar Kheterpal |
|
Designation : |
Secretary |
|
Address : |
21 Sant Nagar, East of Kailash, |
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Date of Birth/Age : |
20.04.1978 |
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Date of Appointment : |
20.11.2009 |
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Date of Ceasing : |
09.09.2010 |
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Name : |
Mr. Ashpinder Singh Sehgal |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Anuraag Srivastava |
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Designation : |
Chief Finance Officer |
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Name : |
Mr. Pankaj Agrawal |
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Designation : |
Head-Human Resources |
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Name : |
Mr. Davinder Dogra |
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Designation : |
Deputy General Manager |
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Name : |
Mr. Shiv Shankar Agarwal |
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Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Pantaloon Retail ( |
|
9999994 |
|
Pantaloon Retail
( |
|
1 |
|
Pantaloon Retail
( |
|
1 |
|
Pantaloon Retail
( |
|
1 |
|
Pantaloon Retail
( |
|
1 |
|
Pantaloon Retail
( Mr. Vimal Dhruve |
|
1 |
|
Pantaloon Retail
( |
|
1 |
|
Axiom Telecom LLC, |
|
10000000 |
|
Total |
|
20000000 |
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] |
|
50.00 |
|
Bodies
corporate |
|
50.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Authorised Distributor and Retailer for Mobile Phones and Accessories.
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Terms : |
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Selling : |
Cash and Credit (30/ 60/ 90 days) |
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Purchasing : |
Cash and Credit (30/ 60/ 90 days) |
GENERAL INFORMATION
|
Customers : |
Wholesalers, Retailers, End Users and OEM’s |
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No. of Employees : |
200 (Approximately) |
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Bankers : |
Bank of |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S.R. Batliboi and Company Chartered Accountants |
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Address : |
Golf View, Corporate Tower B, Sector-42, |
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Tel. No.: |
91-124-4644009 |
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Fax No.: |
91-124-4644050 |
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Subsidiaries : |
Mobile Repair Service City India Limited CIN No.: U74999MH2007PLC173727 |
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Joint Venturer : |
Pantaloon Retail
( CIN No.: L52399MH1987PLC044954 Axiom Telecom
LLC, |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
|
|
|
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 |
200.000 |
200.000 |
200.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1298.525 |
1298.525 |
1298.525 |
|
|
4] (Accumulated Losses) |
(1048.720) |
(389.580) |
(60.333) |
|
|
NETWORTH |
449.805 |
1108.945 |
1438.192 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
13.478 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
13.478 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
449.805 |
1108.945 |
1451.670 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
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|
|
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|
|
|
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|
|
|
FIXED ASSETS [Net Block] |
143.027 |
175.860 |
6.851 |
|
|
Capital work-in-progress |
1.900 |
2.184 |
5.531 |
|
|
Intangible Assets |
156.639 |
169.945 |
189.945 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.634 |
0.634 |
599.772 |
|
|
DEFERREX TAX ASSETS |
0.000 |
201.608 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
24.770
|
52.878 |
34.236 |
|
|
Sundry Debtors |
594.524
|
700.280 |
281.767 |
|
|
Cash & Bank Balances |
31.156
|
128.080 |
343.229 |
|
|
Other Current Assets |
0.717
|
0.225 |
2.547 |
|
|
Loans & Advances |
276.804
|
225.933 |
126.927 |
|
Total
Current Assets |
927.971
|
1107.396 |
788.706 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
771.997 |
531.615 |
129.335 |
|
|
Other Current Liabilities |
5.693
|
14.362 |
6.785 |
|
|
Provisions |
2.676
|
2.705 |
3.015 |
|
Total
Current Liabilities |
780.366
|
548.682 |
139.135 |
|
|
Net Current Assets |
147.605
|
558.714 |
649.571 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
449.805 |
1108.945 |
1451.670 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover |
|
|
|
|
|
|
- |
2434.421 |
2851.347 |
708.114 |
|
|
|
- Airtime |
142.460 |
9.844 |
0.000 |
|
|
|
- Commission Income |
19.882 |
7.807 |
0.000 |
|
|
|
Other Income |
49.165 |
49.634 |
16.376 |
|
|
|
TOTAL (A) |
2645.928 |
2918.632 |
724.490 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
2246.032 |
2804.247 |
698.958 |
|
|
|
Cost of airtime |
134.313 |
9.572 |
0.000 |
|
|
|
Personnel Expenses |
135.301 |
137.459 |
21.378 |
|
|
|
Operating and Other Expenses |
522.366 |
449.283 |
45.361 |
|
|
|
TOTAL (B) |
3038.012 |
3400.561 |
765.697 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I |
(392.084) |
(481.929) |
(41.207) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.069 |
0.608 |
0.095 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(392.153) |
(482.537) |
(41.302) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
65.380 |
45.436 |
10.385 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(457.533) |
(527.973) |
(51.687) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
201.607 |
(198.727) |
0.901 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(659.140) |
(329.246) |
(52.588) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(389.580) |
(60.334) |
(7.746) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1048.720) |
(389.580) |
(60.334) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at F.O.B. Value |
-- |
609.881 |
-- |
|
|
TOTAL EARNINGS |
-- |
609.881 |
-- |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Mobile Phones |
158.445 |
714.922 |
Nil |
|
|
TOTAL IMPORTS |
158.445 |
714.922 |
Nil
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(32.96) |
(16.46) |
(67.61) |
|
|
Particulars |
|
|
31.03.2011 (Approximately) |
|
Sales Turnover |
|
|
2700.000 |
Expected Sales (2011-2012): Rs.3000.000 millions
The above information has been parted by Mr. Shiv Shankar Agarwal
(Finance Manager)
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(24.91)
|
(11.28)
|
(7.26)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(17.62)
|
(18.40)
|
(7.30)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(42.72)
|
(41.14)
|
(6.50)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.02)
|
(0.48)
|
(0.04)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.73
|
0.49 |
0.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.19
|
0.21 |
5.67 |
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 |
|
|
|
|
a) Total
outstanding dues of micro and small enterprises |
-- |
-- |
-- |
|
b) Total
outstanding dues of creditors other than micro and small enterprises |
771.997 |
531.615 |
129.335 |
|
|
|
|
|
NATURE OF
OPERATIONS:
The Company was incorporated on February 06, 2006. Its principal activities
include whole-selling and dealing mainly into mobile phones, accessories,
airtime and mobile connections.
CONTINGENT
LIABILITIES NOT PROVIDED FOR: (As on 31.03.2010)
v
Outstanding guarantees given by the banks on behalf
of the company aggregate Rs.5.000 millions.
FIXED ASSETS:
v
Leasehold Improvements
v
Computers
v
Furniture and Fixtures
v
Vehicle
v
Office Equipments
v
Trademark and Rights
v
Computer Software
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.44.78 |
|
|
1 |
Rs.73.43 |
|
Euro |
1 |
Rs.65.27 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
28 |
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.