MIRA INFORM REPORT

 

 

Report Date :

11.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SMARTNET TECHNOLOGY PRIVATE LIMITED

 

 

Registered Office :

401, Damji Shamji Trasecintre, Vidhya Vihar (West), Mumbai – 400 086, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

09.08.1996

 

 

Com. Reg. No.:

11-101786

 

 

Capital Investment / Paid-up Capital :

Rs.0.350 million

 

 

CIN No.:

[Company Identification No.]

U72200MH1996PTC101786

 

 

Legal Form :

Private Limited Liability Company 

 

 

Line of Business :

The company deals in area networking products, cables, modem, routers and other related products.

 

 

No. of Employees :

20 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 32000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. There appears dip in the sales turnover and profitability in the current year.

 

However, trade relations are reported to be 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.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION PARTED BY

 

Name :

Ms. Upasana

Designation :

Accounts Department

Contact No.:

91-22-25102632

Date :

10.12.2012

 

 

LOCATIONS

 

Registered Office :

401, Damji Shamji Trasecintre, Vidhya Vihar (West), Mumbai – 400 086, Maharashtra, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

sales@smartnet-india.com

support@smartnet-india.com

eit.client@gmail.com

Website :

http://www.smartnet-india.com

Location :

Owned

 

 

Head Office :

311-316, Reena Complex, Adj. Bus Depot, Vidya Vihar Station (West)
Mumbai – 400 086, Maharashtra, India

Tel. No.:

91-22-25102632

Fascimile No.:

91-22-25158274

 

 

Branch Office :

Located at:

 

v  Hyderabad

v  Bangalore

v  Kolkata

v  Nasik

v  Indore

v  Jaipur

 

 

DIRECTORS

 

As on 29.09.2011

 

Name :

Mr. Bhavesh Maganlal Mehta

Designation :

Director

Address :

9, Ganesh Chhaya, R.B. Mehta Marg, Ghatkoper (East), Mumbai – 400 077, Maharashtra, India

Date of Birth/Age :

17.10.1969

Date of Appointment :

09.08.1996

DIN No.:

01104906

 

 

Name :

Mr. Hitesh Jethalal Thakker

Designation :

Director

Address :

805, Nilgiri, Nilkanth Vihar, Syyed Kanvar Marg, Ghatkoper, Mumbai – 400 086, Maharashtra, India

Date of Birth/Age :

06.10.1969

Date of Appointment :

09.08.1996

DIN No.:

02411822

 

 

Name :

Ms. Jigna Bhavesh Mehta

Designation :

Director

Address :

9, Ganesh Chhaya, R.B. Mehta Marg, Ghatkoper (East), Mumbai – 400 077, Maharashtra, India

Date of Birth/Age :

14.02.1972

Date of Appointment :

01.11.2001

DIN No.:

01105183

 

 

Name :

Ms. Sheetal Hitesh Thakker

Designation :

Director

Address :

805, Nilgiri, Nilkanth Vihar, Syyed Kanvar Marg, Ghatkoper, Mumbai – 400 086, Maharashtra, India

Date of Birth/Age :

20.11.1974

Date of Appointment :

01.11.2001

DIN No.:

02411806

 

 

KEY EXECUTIVES

 

Name :

Ms. Upasana

Designation :

Accounts Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2011

 

Names of Shareholders

 

No. of Shares

 

Bhavesh Maganlal Mehta

 

10000

Hitesh Jethalal Thakker

 

10000

Sheetal Hitesh Thakker

 

7500

Jigna Bhavesh Mehta

 

7500

Total

 

35000

 

As on 29.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company deals in area networking products, cables, modem, routers and other related products.

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Suppliers :

v  Advan-Tech

v  Alpha Automation

v  Ankit Enterprise

v  Atlas Logistics Private Limited

v  D.C. Infotech

v  Eeshan Enterprises

v  Inflow Technology

v  Ingram Micro India Limited

v  Western India Networking Innovations

v  Trade Link

v  Sigma Systems

v  S.S. Technologies

v  Rushabh Sales Corporation

 

 

Customers :

Corporates

 

v  4D Solutions

v  Aditya Birla Management Corporation Private Limited

v  Agni Infotech

v  Data Cablenet

v  Dorf Ketal Chemicals India Private Limited

v  Elixir Hospital

v  Expert Solutions (India) Private Limited

v  Digital Telecom and Security System

v  Crest Integrators Private Limited

v  D.C. Infotech

v  Karp Impex Limited

v  JSW Steel Limited

v  Nelco Limited

v  Optical Networks

 

 

No. of Employees :

20 (Approximately)

 

 

Bankers :

v  HDFC Bank Limited, Mumbai, Maharashtra, India

v  Canara Bank

v  Citi Bank

v  Standard Chartered Bank

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Anand Mukul Associates

Chartered Accountants

Address :

2, Hazari Bhuvan, Dr. R.P. Road, Mulund (West), Mumbai – 400 080, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AAAFA8594P

 

 

Related Party :

Smartnet Service

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

35000

Equity Shares (with Voting Rights)

Rs.10/- each

Rs.0.350 million

5000

Preference Shares

Rs.10/- each

Rs.0.050 million

 

Total

 

Rs.0.400 million

 

Issued Capital :

No. of Shares

Type

Value

Amount

35000

Equity Shares (with Voting Rights) 

Rs.10/- each

Rs.0.350 million

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

35000

Equity Shares (with Voting Rights)

Rs.10/- each

Rs.0.350 million

 

 

 

 

 

Details of Shareholders holding more than 5% of equity shares

 

Name of Shareholders

 

As at 2012

 

% Holding

No. of Shares

Hitesh J. Thakker

25.00

8750

Sheetal H. Thakker

25.00

8750

Bhavesh M. Mehta

25.00

8750

Jigna B. Mehta

25.00

8750

 

 

35000

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

0.350

0.350

0.350

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

7.677

20.123

15.712

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

8.027

20.473

16.062

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

18.770

TOTAL BORROWING

0.000

0.000

18.770

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

8.027

20.473

34.832

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1.800

2.079

2.462

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

6.659

1.354

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2.496

5.291

14.010

 

Sundry Debtors
16.217

21.803

39.301

 

Cash & Bank Balances
1.367

6.457

1.538

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
1.877

2.960

4.264

Total Current Assets
21.957

36.511

59.113

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
20.022

16.044

23.102

 

Other Current Liabilities
1.601

1.424

0.000

 

Provisions
0.766

2.003

3.641

Total Current Liabilities
22.389

19.471

26.743

Net Current Assets
(0.432)

17.040

32.370

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

8.027

20.473

34.832

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations (net of taxes)

75.446

137.935

154.296

 

 

Other Income

0.381

1.546

1.339

 

 

TOTAL                                     (A)

75.827

139.481

155.635

 

 

(Due to Less order)

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

62.468

118.389

133.286

 

 

Employee Benefits Expenses

5.599

8.080

12.001

 

 

Other Expenses

4.684

4.294

 

 

 

TOTAL                                     (B)

72.751

130.763

145.287

 

 

 

 

 

Less

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

3.076

8.718

10.348

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.030

1.721

0.921

 

 

 

 

 

 

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

3.046

6.997

9.427

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.434

0.515

0.611

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

2.612

6.482

8.816

 

 

 

 

 

Less

TAX                                                                  (H)

0.766

2.003

2.724

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1.846

4.479

6.092

 

 

 

 

 

Add

Provision for tax for earlier year w/off

NA

2.724

2.449

Add

Income tax refund

NA

0.000

0.017

Less

Advance tax and TDS of earlier year w/off

NA

2.792

2.513

 

 

 

 

 

 

Profit to be carried forward to Profit and Loss A/c

NA

4.411

6.045

 

 

 

 

 

 

Earnings Per Share (Rs.)

52.74

127.97

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
2.43

3.21

3.91

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
3.46

4.70

5.71

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.99

16.80

14.32

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.33

0.32

0.55

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.79

0.95

2.83

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.98

1.88

2.21

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

20.022

16.044

23.102

 

 

 

 

 

Details of Sundry Creditors: (Partial Details)

 

Particulars

 

31.03.2012

(Rs. in millions)

Advan-Tech

0.015

Alpha Automation

0.002

Ankit Enterprise

0.001

Atlas Logistics Private Limited

0.041

D.C. Infotech

0.161

Eeshan Enterprises

0.143

Inflow Technology

0.087

Western India Networking Innovations

0.050

Trade Link

1.522

Sigma Systems

0.003

S.S. Technologies

0.115

Rushabh Sales Corporation

3.562

 

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

Yes

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

Yes

18) Major customers

Yes

19) Payments terms

Yes

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

No

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

31) Date of Birth of Proprietor/Partner/Director, if available

Yes

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

No

 

 


PERFORMANCE DURING THE CURRENT YEAR:

 

The Directors expects to achieve even better performance during the current year.

 

FIXED ASSETS:

 

v  Air Conditioner

v  Computer

v  Electrical Installation

v  EPABX Systems

v  Fax Modem

v  Furniture and Fixture

v  Mobile Car

v  Pager

v  Printer

v  Refrigerator

v  Telephone Instruments

v  Water Purifier

v  Machinery

v  Music System

v  Tea Vending Machine

 

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 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 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.54.34

UK Pound

1

Rs.87.09

Euro

1

Rs.70.13 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

 

36

 

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.