MIRA
INFORM REPORT
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Report Date : |
14.05.2011 |
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) : |
31.03.2010 |
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Date of
Incorporation : |
21.08.2008 |
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Com. Reg. No.: |
08-047525 |
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Capital
Investment / Paid-up Capital : |
Rs.46.000 millions |
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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 Phones and Accessories |
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No. of Employees
: |
450 [Approximately] |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 434000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. The company is doing well. Business is
active. Payments are reported to be usually correct and as per commitments. The concern 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.
INFORMATION PARTED BY
|
Name : |
Mr. Narayan Sharma |
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Designation : |
Finance Manager |
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Contact No.: |
91-9900297054 |
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Date : |
12.05.2011 |
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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Tel. No.: |
91-80-26767111 |
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E-Mail : |
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Location : |
Owned |
DIRECTORS
AS ON 30.09.2010
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Name : |
Mr. Lakku Subhash Chandra Reddy |
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Designation : |
Director |
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Address : |
No. 85/2, 1st Cross, 7th Main, Jayanagar, 2nd
block, Bangalore – 560011, Karnataka, India |
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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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DIN : |
02152263 |
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Name : |
Mrs. Bharathi Lakku |
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Designation : |
Director |
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Address : |
#47, Vandemataram, 12th Main, 3rd Block,
Jayanagar, |
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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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DIN : |
02152268 |
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Name : |
Mr. Lakku Penchala Narayana Reddy |
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Address : |
No. 85/2, 1st Cross, 7th Main, Jayanagar, 2nd
block, Bangalore – 560011, Karnataka, India |
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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 |
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DIN : |
02192972 |
KEY EXECUTIVES
|
Name : |
Mr. Narayan Sharma |
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Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
|
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 30.09.2010
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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 Phones and Accessories |
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Product : |
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Terms : |
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Selling : |
Cash / Credit [30 / 60 / 90 days] |
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Purchasing : |
Cash / Credit [30 / 60 / 90 days] |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
450 [Approximately] |
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Bankers : |
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Facilities : |
Cash Credit – Rs.200.000 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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Tel. No. : |
91-80-26568611 |
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Email : |
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Related Parties : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
4,600,000 |
Equity Shares |
Rs. 10 each |
Rs.46.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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4,600,000 |
Equity Shares |
Rs. 10 each |
Rs.46.000 millions |
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Note : Of the above shares 2,600,000 equity shares have been
allotted to Anu Distributors Towards sale consideration for acquiring its business
as a going concern through slum sale agreement
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
|
46.000 |
20.000 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
62.522 |
4.875 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
108.522 |
24.875 |
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LOAN FUNDS |
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|
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1] Secured Loans |
|
204.494 |
50.092 |
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2] Unsecured Loans |
|
6.919 |
31.084 |
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TOTAL BORROWING |
|
211.413 |
81.176 |
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DEFERRED TAX LIABILITIES |
|
4.269 |
0.000 |
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TOTAL |
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324.204 |
106.051 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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171.174 |
38.864 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.222 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
471.778 |
153.776 |
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Sundry Debtors |
|
123.855 |
7.334 |
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Cash & Bank Balances |
|
16.794 |
2.544 |
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Other Current Assets |
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0.000 |
1.283 |
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Loans & Advances |
|
104.912 |
54.008 |
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Total
Current Assets |
|
717.339 |
218.945 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
|
521.330 |
142.342 |
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Statutory Dues |
|
4.151 |
2.059 |
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Other Current Liabilities and Provisions |
|
38.828 |
7.579 |
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Total
Current Liabilities |
|
564.309 |
151.980 |
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Net Current Assets |
|
153.030 |
66.965 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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324.204 |
106.051 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
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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4708.558 |
757.600 |
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Less |
EXPENSES |
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Office Expenses |
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Administrative Expenses |
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Advertising Expenses |
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TOTAL |
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4617.181 |
745.572 |
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Including
Depreciation and Finance Expenses |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
12.028 |
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Less/ Add |
DEPRECIATION/
AMORTISATION |
|
|
4.849 |
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PROFIT BEFORE
TAX |
|
91.377 |
7.179 |
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PROFIT AFTER TAX |
|
57.647 |
NA |
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Earnings Per
Share (Rs.) |
|
12.53 |
-- |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
1.22 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
|
1.94 |
1.02 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
10.28 |
2.78 |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.84 |
0.28 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
7.15 |
9.37 |
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Current Ratio (Current Asset/Current Liability) |
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|
1.27 |
1.44 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars
|
31.03.2010 |
31.03.2009 |
|
|
|
|
|
For Purchases |
497.016 |
131.079 |
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For Advertisement |
16.220 |
5.464 |
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For Interiors |
1.815 |
4.919 |
|
Other Creditors |
6.279 |
0.880 |
|
Sundry
Creditors |
521.330 |
142.342 |
Highlights:
During the year the Company has acquired the businesses of Anu
Distributors, a well established Partnership Firm, in the business of Mobile
Phones Distribution in Karnataka, Andhra Pradesh and Tamil Nadu thruough slump
sales agreement for a Sales consideration of 26.000 millions and same has been
discharged by issue and allotment of 260000 Equity shares of 10.00 each as
fully paid.
Further the Company has acquired the business of Wave Communication a well
established Chennai based Mobile Retail proprietory Firm under the Brand name
of “Wavetel” for a sales consideration of 130.000 millions
The progress achieved by the company is enthusiastic when compared to
the competition faced in the retail mobile business in
with more than 100 stores. This trend has given a stimulus confidence on
their growth potential.
Company has continued to spend a huge amount on Handset Insurance which
they have introduced in
All the suppliers will give them price protection support against the
frequent price drops that happen in this trade. This is universally accepted
practice but the amount and year varies from supplier to supplier and Brand to
Brand.
Sales growth Vs
outlets and profit Margin:
Sales growth of all their outlets is good. Their sales have shown an
increasing trend over the year and maintained the reasonable Profit Margin.
Breakeven time
required for new outlets:
Most of their stores are located in strategic location to attract the
customers. Further it depends on the external appearance and interior appeal
and most crucial point is customer satisfaction. At Sangeetha it is their
relentless endure in training their staff to handle customer in the best
possible manner and to bring a smile on their face.
Finance:
The Company has changed the credit facilities from Kotak Mahindra bank
to Standard Chartered Bank and relation with the Bank is cordial during the
year under review.
Controls:
Company 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 control and
updation of inventory is crucial.
Future Scope:
Competition in the mobile retail market has sharply increased over the
years. As there is a vast potential for the unexplored mobile market in
With a huge mobile market in
Mobile Market:
are entering the organized mobile retailing sector.
Expansion:
Sangeetha has expanding rapidly and plans to open new outlets by the end
of 2010. Out. It has set a target to open 100 more outlets by the end of 2011
and another 100 by the end of 2012, with the ultimate aim to achieve 300
outlets in 3 years with a turnover touching Rs.1200 Crores. Sangeetha has
identified II tire and III tire towns for Expansion in the next 3 years.
Further it has plans to bring in Private Equity to boost it National presence
and
emerge as a leading National Player in Mobile Retail Trade on its own
merit
Critical Factor:
Risk and problem areas of mobile industry
The major problem faced by the Retail trade is Price drop which happen
very frequently and change of Models of mobiles. Sangeetha can withstand the
Price drops and model Changes due to its strong market presence and Brand name.
It can influence the major mobile brands to compensate the Price Drops and
replace the discontinued models.
Marketing And
Market Share:
Sangeetha Mobiles has set aside a good budget for establishing Sangeetha
Brand through TV Channels and newspapers all over
Sangeetha has a good market share in the Mobile Retail trade with its
long term vision for rapid expansion plans and sales target it will penetrate
into the market share considerably in the years to come.
Brands; There are 5 major Brands in the
Fixed Assets:
- Plant and
Machinery
- Motor
Vehicles
- Computers
- Furniture and
Fixtures
FORM 8
|
Corporate
identity number of the company |
U51909KA2008PTC047525 |
|
Name of the
company |
SANGEETHA MOBILES PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
No. 47, |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10200751 |
|
Type of charge |
|
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Particular of
charge holder |
Standard Chartered Bank, 112, Serenity, Koramangala Industrial Area, Email: leena.gangadharan@sc.com |
|
Nature of instrument
creating charge |
Hypothecation
Agreement |
|
Date of
instrument Creating the charge |
21.09.2010 |
|
Amount secured by
the charge |
Rs. 200.000
millions |
|
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. |
|
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.44.91 |
|
|
1 |
Rs.73.05 |
|
Euro |
1 |
Rs.64.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
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 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.