MIRA INFORM REPORT

 

 

Report Date :

12.05.2011

 

IDENTIFICATION DETAILS

 

Name :

TOTEM INTERNATIONAL LIMITED

 

 

Registered Office :

Door No.6, Totem House, Opp. Sai Baba Temple, Dwarkapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.10.2010

 

 

Date of Incorporation :

24.06.2009

 

 

Com. Reg. No.:

01-064124

 

 

Capital Investment / Paid-up Capital :

Rs.10.000 millions

 

 

CIN No.:

[Company Identification No.]

U74999AP2009PLC064124

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDT04053A

 

 

PAN No.:

[Permanent Account No.]

AADCT2035L

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Exporter and Importer of security electronic surveillance, security training and sensitization

 

 

No. of Employees :

8 In Office [Approximately ]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B [26]

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 4100

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are fair. Business is active. Payments are reported to be slow.

 

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.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

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. Chandra Sekhar

Designation :

Accounts Department

Contact No.:

91-40-23350097

Date :

09.05.2011

 

 

LOCATIONS

 

Registered Office :

Door No.6, Totem House, Opp. Sai Baba Temple, Dwarkapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India

Tel. No.:

91-40-23350097 / 23350199

Fax No.:

91-40-23350082

E-Mail :

das@totemint.com

Website :

http://www.toteminternational.tradeindia.com

 

 

DIRECTORS

 

24.12.2010

 

Name :

Mr. Krishna Kumar Callingale

Designation :

Whole-time Director

Address :

No.10-2-273, Flat No.507, Keerti Sudarshan, West Marredpally, West Marredpally Street No.5, Secunderabad – 500026, Andhra Pradesh, India

Date of Birth/Age :

05.10.1949

Date of Appointment :

15.03.2010

DIN :

03064429

 

 

Name :

Mr. Firoze  Zia  Hussain

Designation :

Director

Address :

Block 14, Heritage City, Gurgaon – 122001

Date of Birth/Age :

25.12.1967

Date of Appointment :

02.07.2009

DIN :

02664915

 

 

Name :

Mr. Prakash Nayak

Designation :

Director

Address :

9th A Main, Indira Nagar, 1st Stage, Bangalore, Karnataka - 560038

Date of Birth/Age :

20.05.1961

Date of Appointment :

02.07.2009

DIN :

01499859

 

 

KEY EXECUTIVES

 

Name :

Mr. Chandra Sekhar

Designation :

Accounts Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 24.12.2010

 

Names of Shareholders

 

No. of Shares

Kavita Tottempudi

 

510000

Salalith Tottempudi

 

305000

Dr. Pujari

 

0

Abhijit Roy

 

0

Mehnaz Parveen

 

30000

Firoze Zia Hussain

 

30000

Jyotsna Chauhan

 

85000

Prakash Nayak

 

30000

Krishna Kumar C V

 

10000

Total

 

1000000

 

 

As on 24.12.2010

 

Category

Percentage

 

 

Directors or relatives of Directors

10.00

Other top fifty shareholders

90.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Exporter and Importer of security electronic surveillance, security training and sensitization

 

 

Exports :

 

Products :

Security Electronic Surveillance

Countries :
  • Saudi Arabia

 

 

Imports :

 

Products :

Security Training

Countries :
  • US
  • Russia

 

 

Terms :

 

Selling :

L/C / Cash / Credit

 

 

Purchasing :

L/C / Cash / Credit

 

 

GENERAL INFORMATION

 

Customers :
  • Inspectors
  • Skilled Workers

 

 

No. of Employees :

8 In Office [Approximately ]

 

 

Bankers :

State Bank of Patiala, 1-99/14, Madhapur Branch, Hyderabad – 500081, Andhra Pradesh, India

 

 

Facilities :

Secured Loan [Rs.in Million]

24.06.2009 to 31.10.2010

From Banks

 

Working Capital Loan –Cash Credit [Secured by a first charge on the current assets of the company including stock and book debts present and future and also collaterally secured by equitable mortgage of certain immovable properties belonging to the promoters.

1.816

Total

1.816

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

1-8-384 and 385, 3rd floor, Gowra Grand, S.P. Road, Begimpet, Secunderabad – 500003, Andhra Pradesh, India

Tel. No.:

91-40-40312600

Fax No.:

91-40-40312714

 

 

Enterprise Significantly Influenced by Major Shareholder :

Totem Infrastructure Limited

 

 

CAPITAL STRUCTURE

 

As on 31.10.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5,000,000

Equity Shares

Rs.10/-each

Rs.50.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,000,000

Equity Shares

Rs.10/-each

Rs.10.000 millions

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

24.06.2009 to 31.10.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

10.000

2] Share Application Money

 

 

0.977

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

(9.941)

NETWORTH

 

 

1.036

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

1.816

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

1.816

DEFERRED TAX LIABILITIES

 

 

0.051

 

 

 

 

TOTAL

 

 

2.903

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

0.437

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

0.416

 

Sundry Debtors
 

 

2.783

 

Cash & Bank Balances
 

 

0.913

 

Other Current Assets
 

 

1.384

 

Loans & Advances
 

 

0.811

Total Current Assets
 

 

6.307

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

 

3.298

 

Other Current Liabilities
 

 

0.420

 

Provisions
 

 

0.123

Total Current Liabilities
 

 

3.841

Net Current Assets
 

 

2.466

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

2.903

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

24.06.2009 to 31.10.2010

 

SALES

 

 

 

 

 

Sale of traded goods

 

 

4.647

 

 

Income from services

 

 

8.847

 

 

Other Income

 

 

0.293

 

 

TOTAL                                     (A)

 

 

13.787

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of goods sold

 

 

4.244

 

 

Personnel Expenses

 

 

8.787

 

 

General and Administrative Expenses

 

 

9.798

 

 

TOTAL                                     (B)

 

 

22.829

 

 

 

 

 

Less

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

 

 

(9.042)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

0.772

 

 

 

 

 

 

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

 

 

(9.814)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

0.076

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

 

(9.890)

 

 

 

 

 

Less

TAX                                                                  (I)

 

 

0.051

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

 

 

(9.941)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

 

(9.941)

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

(19.92)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Income From Services

 

 

8.847

 

TOTAL EARNINGS

 

 

8.847

 

 

 

 

 

 

IMPORTS

 

 

 

 

Purchase of Traded goods

 

 

0.102

 

TOTAL IMPORTS

 

 

0.102

 

 

Particulars

 

 

 

2009-2010

 

 

 

 

Sales Turnover

 

 

14.000

 

 

 

 

 

Expected Sales ( 2010-2011 ) : Rs.16.000 millions

 

The above information has been parted by Mr. Chandra Sekhar [Account Department]

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

24.06.2009 to 31.10.2010

PAT / Total Income

(%)
 

 

(72.10)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

(212.82)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

(146.65)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

(9.55)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

5.46

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

1.64

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note : registered office address of the company has been shifted from Plot No.723, Sri Venkateshwara Hills Colony, Road No.3, Banjara Hills, Hyderabad – 500082, Andhra Pradesh, India to the present address w.e.f. 15.03.2010.

 

Business Performance Review :

 

The company has achieved a turnover of Rs.4.646 million during its first year of commercial operation. They also facilitated sales of Rs.210.000 million during the year and earned commission of Rs.8.847 million on the transaction.

 

Changes in Share Capital :

 

The company has raised Rs.5.000 million during the year apart from the initial subscription of Rs.5.000 million. The paid up capital of the company stands at Rs.10.000 million for the year ended 31.10.2010.

 

Contingent Liability :

Bank Guarantee – Rs.1.191 million [As on 31.10.2010]

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U74999AP2009PLC064124

Name of the company

Totem International Limited

Address of the registered office or of the principal place of  business in India of the company

Door No 6, Totem house, Opposite Sai Baba Temple,

Dwarakapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh, INDIA

This form is for

Creation of Charge

Type of charge

  • Immovable Property
  • Movable Property
  • others

Particular of charge holder

State Bank of Patiala, 1-99/14, Madhapur Branch, Hyderabad – 500081, Andhra Pradesh, India

Nature of instrument creating charge

1. Agreement of Hypothecation of goods and assets

2. Agreement for loan for overall limit

Date of instrument Creating the charge

30.07.2010

Amount secured by the charge

Rs.65.000 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest - CC: 6.80% above Base rate i.e. 14.55% (floating) with monthly rests (current base rate 7.75%)

 

Terms of Repayment - On demand

 

Margin - Raw materials 25%;SIP: 25%; Finished goods : 25%; Receivables: 25%; Letter of credit : 10%; Bank guarantee: 10%(margin on Financial Guarantees to be kept at 15%) the sanctioning authority has recommended 25% concession in BG charges)

 

Extent and Operation of the charge - Working capital - CC and BG: Primary: Hypothecation of entire current assets including stocks and book debts present and future by way of first charge. However, no DP will be allowed against book debts older than 90 days.Collateral: 1) immovable property situated at H No 19, Sy no 42(p), 43(p), 45(p) and 46(p) situated at layout name Anthem Gudlapochampally village, R R Dist 2) Residential flat situated at H No 8-3-222/8/A/11, Sy No 6, 7, 91 and 92, F No 301, 3rd floor, Madhuranagar, Hyderabad

Short particulars of the property or asset(s) charged (including complete address and location of the property)

H No 19, Sy no 42(p), 43(p), 45(p) and 46(p) situated at layout name Anthem Gudlapochampally village, R R Dist

Residential flat situated at H No 8-3-222/8/A/11, Sy No 6, 7, 91 and 92, F No 301, 3rd floor, Madhuranagar, Hyderabad

 

FIXED ASSETS :

  • Computer
  • Office Equipment
  • Furniture and Fittings

 

 

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.44.69

UK Pound

1

Rs.73.12

Euro

1

Rs.64.39

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--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

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

-

 

 

 

 

 

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.