MIRA INFORM REPORT

 

 

Report Date :

13.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ELECON INFORMATION TECHNOLOGY LIMITED

 

 

Registered Office :

Anand - Sojitra Road, Vallabh Vidyanagar, Anand – 388 120, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

09.07.1984

 

 

Com. Reg. No.:

04-007066

 

 

Capital Investment / Paid-up Capital :

Rs.1.551 millions

 

 

CIN No.:

[Company Identification No.]

U65910GJ1984PLC007066

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDE00190B

 

 

PAN No.:

[Permanent Account No.]

AAACT6926F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing hardware, software and networking solutions.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (44)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 199000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track.

 

There appears some dip in the profitability during 2012.

 

However, trade relations are reported as fair. Business is active. Payment terms are slow but correct.

 

The company can be considered normal 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 DECLINED BY

 

Name :

Mr. Gautam

Designation :

Office Executive

Contact No.:

91-9879618942

Date :

11.12.2012

 

 

LOCATIONS

 

Registered Office :

Anand - Sojitra Road, Vallabh Vidyanagar, Anand – 388 120, Gujarat, India

Tel. No.:

91-2692-230963/ 227292/ 227297/ 227299/ 227291/ 230168

Mobile No.:

91-9879618942 (Mr. Gautam)

Fax No.:

91-2692-231792/ 236457/ 236508

E-Mail :

inquiry@eitl.elecon.com

kdpatel@emtici.elecon.com

Website :

http://www.eleconinfotech.com

 

 

DIRECTORS

 

As on 28.09.2012

 

Name :

Mr. Prayasvin Bhanubhai Patel

Designation :

Director

Address :

Honest House, Bakrol Road, Vallabh Vidyanagar, District Anand – 388 120, Gujarat, India

Date of Birth/Age :

03.04.1958

Date of Appointment :

21.07.2001

DIN No.:

00037394

 

 

Name :

Mr. Prashant Chandrakant Amin

Designation :

Director

Address :

Shital, Bhikabhai Marg, Vallabh Vidyanagar, District Anand – 388 120, Gujarat, India

Date of Birth/Age :

09.08.1956

Date of Appointment :

29.09.2007

DIN No.:

01056652

 

 

Name :

Mrs. Sudha Sumantray Desai

Designation :

Director

Address :

Isha Sudhabens Bunglows, V.V. Nagar, Karamsad, Anand – 388 325, Gujarat, India

Date of Birth/Age :

24.11.1933

Date of Appointment :

27.09.2001

DIN No.:

01216972

 

 

Name :

Mr. Dilipbhai Balubhai Patel

Designation :

Director

Address :

21, Sanjit Baug, Sharda Mandir Road, Paldi, Ahmedabad – 388 001, Gujarat, India

Date of Birth/Age :

03.09.1936

Date of Appointment :

01.02.1988

DIN No.:

00181639

 

 

KEY EXECUTIVES

 

Name :

Mr. Gautam

Designation :

Office Executive

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.09.2012

 

Names of Shareholders

 

No. of Shares

 

Prayasvin Bhanubhai Patel

 

15308

Devkishan Investments Private Limited, India

 

97

Aishwarya Prayasvin Patel

 

100

Emtici Engineering Limited, India

 

1

Prayas Engineering Limited, India

 

1

Akaaish Mechatronics Limited, India

 

1

Bipra Investments and Trusts Private Limited, India

 

1

K.B. Investments Private Limited, India

 

1

Total

 

15510

 

As on 28.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

0.66

Directors or relatives of directors

 

99.34

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing hardware, software and networking solutions.

 

 

Products/ Services :

v  Computer Services

v  Investments

v  Finance and Leasing

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

v  HDFC Bank Limited

v  The Anand Urban Co-Operative Bank Limited

v  IDBI Bank Limited

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Vehicle Loan from:

 

 

HDFC Bank Limited

Terms of repayment: Repayable in Equated Monthly installments (EMls)

Secured By : Hypothecation of respective

Vehicles

0.000

0.292

Kotak Mahindra Prime Limited

Terms of repayment: Repayable in Equated Monthly installments (EMls)

Secured By : Hypothecation of respective vehicles

0.405

0.000

SHORT TERM BORROWINGS

 

 

Over Draft from Banks

 

 

(I) Overdraft from IDBI Bank

(Secured against Fixed Deposits of 4.471 millions)

3.483

3.310

Total

3.888

3.602

 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

(I) Inter Corporate Deposit from:

 

 

- Related Parties

0.000

1.500

(II) Deposit from Staff

0.234

0.316

Total

0.234

1.816

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

J.D. Zatakia and Company

Chartered Accountants

Address :

306, Rupa Plaza, Jawahar Road, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India

Tel. No.:

91-22-25010766/ 25010052

Mobile No.:

91-9820122976

Tele Fax No.:

91-22-25011051

E-Mail :

jituzatakia@yahoo.com (O)

zatakia@hotmail.com (P)

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

AAAPZ0084D

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

23800

Equity Shares

Rs.100/- each

Rs.2.380 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

15510

Equity Shares

Rs.100/- each

Rs.1.551 millions

 

 

 

 

 

 

 

 

PARTICULARS

As At March 31,2012

Equity Shares

Number

Amount

(Rs. in millions)

Shares outstanding at the beginning of the year

15510

1.551

Shares Issued during the year

--

--

Shares bought back during the year

--

--

Shares outstanding at the end of the year

15510

1.551

 

 

Name of Shareholder

As At March 31,2012

No. of Shares held

% of Holding

Equity Shares:

 

 

Pravasvin B. Patel

15308

98.70

 

Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.100 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

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

1.551

1.551

1.551

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

48.233

47.388

43.792

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

49.784

48.939

45.343

LOAN FUNDS

 

 

 

1] Secured Loans

3.888

3.602

0.000

2] Unsecured Loans

0.234

1.816

0.993

TOTAL BORROWING

4.122

5.418

0.993

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

53.906

54.357

46.336

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5.114

6.241

6.220

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

16.048

16.048

16.049

DEFERRED TAX ASSETS

0.361

0.153

0.037

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
6.286

4.227

6.131

 

Sundry Debtors
13.804

14.327

17.026

 

Cash & Bank Balances
9.499

8.731

5.765

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
19.160

15.378

12.928

Total Current Assets
48.749

42.663

41.850

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
9.923

5.547

7.034

 

Other Current Liabilities
1.387

1.047

2.842

 

Provisions
5.056

4.154

7.944

Total Current Liabilities
16.366

10.748

17.820

Net Current Assets
32.383

31.915

24.030

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

53.906

54.357

46.336

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations 

127.430

107.131

80.939

 

 

Other Income

2.685

2.209

2.258

 

 

TOTAL                                     (A)

130.115

109.340

83.197

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of Stock in Trade

83.889

64.083

74.834

 

 

(Increase) I Decrease in Stock in Trade

(2.095)

1.916

 

 

 

Employee Benefit Expense

35.864

27.422

 

 

 

Other Expenses

8.299

7.063

 

 

 

TOTAL                                     (B)

125.957

100.484

74.834

 

 

 

 

 

Less

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

4.158

8.856

8.363

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.580

0.161

0.171

 

 

 

 

 

 

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

3.578

8.695

8.192

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2.367

2.567

2.920

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

1.211

6.128

5.272

 

 

 

 

 

Less

TAX                                                                  (H)

(0.086)

2.081

1.681

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1.297

4.047

3.591

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2.818

1.722

1.083

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

3.000

2.500

2.500

 

 

Proposed Dividend

0.388

0.388

0.388

 

 

Tax on Proposed Dividend

0.063

0.063

0.064

 

BALANCE CARRIED TO THE B/S

0.664

2.818

1.722

 

 

 

 

 

 

Earnings Per Share (Rs.)

83.60

260.93

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
1.00

3.70

4.32

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
0.95

5.72

6.51

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.25

12.53

10.97

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.02

0.13

0.12

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.41

0.33

0.41

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.98

3.97

2.35

 

 

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)

(a) Trade Payables

9.873

5.497

7.034

(b) Trade Payables for CAPEX

0.050

0.050

 

Total

9.923

5.547

7.034

 

 

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

No

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%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

No

17) Major suppliers

No

18) Major customers

No 

19) Payments terms

No

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

Yes

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 year; Company's gross earnings were Rs.130.115 millions (Previous year Rs.109.340 millions) The Profit after taxation of the company is Rs.1.269 millions as against last year's profit after taxation of Rs.4.244 millions.

 

FIXED ASSETS:

 

v  Personal Computer

v  Air Conditioner

v  Office Equipment

v  Furniture and Fixtures

v  Vehicles

v  Tools and Measuring Equipment

 

 

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 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.54.27

UK Pound

1

Rs.87.43

Euro

1

Rs.70.55 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

44

 

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.