MIRA
INFORM REPORT
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Report Date : |
09.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
TRENT HYPERMARKET LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
01.07.2008 |
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Com. Reg. No.: |
11-184184 |
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Capital
Investment / Paid-up Capital : |
Rs. 522.000 millions
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CIN No.: [Company Identification
No.] |
U51900MH2008PLC184184 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT14830E |
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PAN No.: [Permanent Account No.] |
AACCT9803D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Retail Business |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Trent Limited. It is a Tata Group Company.
There appear huge accumulated losses recorded by the company. However, trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. In view of strong holding company, the subject 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 DECLINED BY
|
Name : |
Mr. Surendra Aggarwal |
|
Designation : |
Accounts Managers |
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Contact No.: |
91-22-67008520 |
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Date : |
07.07.2012 |
LOCATIONS
|
Registered Office : |
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Tel. No.: |
91-22-22071464/ 67008003 / 67008520 |
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Fax No.: |
91-22-22070216/ 67008600 |
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E-Mail : |
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Corporate Office : |
Trent House, G-Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla
Complex, Bandra (east), Mumbai – 400 051, Maharashtra, India |
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Tel. No.: |
91-22-67009000 |
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Fax No.: |
91-22-67009210 |
DIRECTORS
AS ON 08.08.2011
|
Name : |
Mr. Noel Naval Tata |
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Designation : |
Chairman |
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Address : |
Windmere, 55, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
12.11.1956 |
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Qualification : |
B.A.(Eco) |
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Date of Appointment : |
29.07.2010 |
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DIN No.: |
00024713 |
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Name : |
Mr. Venkatesalu Palaniswamy |
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Designation : |
Director |
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Address : |
Tata Colony, ‘Falcon Crest’, Flat # 102, G.D. Ambekar Marg, Parel,
Mumbai – 400 017, Maharashtra, India |
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Date of Birth/Age : |
27.02.1977 |
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Qualification : |
BCOM, CFA, MBA |
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Date of Appointment : |
03.07.2008 |
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DIN No.: |
02190892 |
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Name : |
Mr. Aspy Dady Cooper |
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Designation : |
Director |
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Address : |
47, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
23.08.1940 |
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Qualification : |
B.Com, F.C.A. |
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Date of Appointment : |
17.10.2008 |
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DIN No.: |
00026134 |
KEY EXECUTIVES
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Name : |
Mrs. Hutoxshi Rohinton Wadia |
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Designation : |
Company Secretary |
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Address : |
23, Jamasji Apartment, 32, |
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Date of Birth/Age : |
14.06.1959 |
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Date of Appointment : |
12.06.2009 |
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PAN No.: |
AADPW3150A |
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Name : |
Mr. Surendra Aggarwal |
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Designation : |
Accounts Managers |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 08.08.2011
|
Names of Shareholders (Equity Shares) |
No. of Shares |
|
Trent Limited, |
51199979 |
|
Trent Limited, |
1 |
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Trent Limited, |
1 |
|
Flora Link Road Properties Limited, |
15 |
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Trent Limited Jointly with Nahar Theatres Private Limited |
1 |
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Trent Limited, |
1 |
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Trent Limited, |
1 |
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Trent Limited, |
1 |
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TOTAL
|
51200000 |
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Names of Shareholders (Preference Shares) |
No. of Shares |
|
Trent Limited, |
1000000 |
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TOTAL
|
1000000 |
AS ON 08.08.2011
|
Equity Share Breakup |
Percentage of Holding |
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Category |
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Bodies
corporate |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Retail Business |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information declined by the management |
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Bankers : |
Not Available |
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Facilities : |
[Repayable within one year – Rs. NIL (2009-10 Rs. NIL)] |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
N.M. Raiji and Company Chartered Accountants |
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Address : |
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Tel. No.: |
91-22-22870068/ 22873463/ 22837482 |
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Tele Fax No.: |
91-22-22828646/ 22650578 |
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E-Mail : |
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PAN No.: |
AAAFN4217G |
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Holding Company : |
Trent Limited CIN No.: L24240MH1952PLC008951 Address: Board No. : 91-22-67009000 Reception: 91-22-67009026/ 67009027 |
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Subsidiary Company : |
Virtuous Shopping
Centres Private Limited - 66.66% Subsidiary treated as joint venture in terms
of AS 27 |
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Fellow Subsidiaries : |
v
Fiora Services Limited v
Landmark Limited |
CAPITAL STRUCTURE
AS ON 08.08.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
99050000 |
Equity Shares |
Rs.10/- each |
Rs. 990.500 millions |
|
1000000 |
Preference Shares |
Rs.10/- each |
Rs. 10.000 millions |
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Total |
|
Rs. 1000.500
millions |
Issued, Subscribed & Paid-up Capital : Rs. 734.208 Millions
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60050000 |
Equity Shares |
Rs.10/- each |
Rs. 600.500 millions |
|
1000000 |
10% p.a. Non Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 10.000 millions |
|
|
Total |
|
Rs. 610.500
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
51200000 |
Equity Shares (The above shares are held by Trent Limited, the holding company) |
Rs.10/- each |
Rs. 512.000 millions |
|
1000000 |
10% p.a. Non Cumulative Redeemable Preference Shares (The above shares are held by Trent Limited, the holding company) |
Rs.10/- each |
Rs. 10.000 millions |
|
|
Total |
|
Rs. 522.000 millions |
Note:
Of the Above:
(1)
During the year 150000 Equity Shares of Rs 10/-
each and 1000000 10% p.a. Non Cumulative Redeemable Preference shares of Rs
10/- each were allotted as fully paid pursuant to Scheme of Amalgamation
without payment being received in cash.
(2)
The 10% p.a. Non Cumulative Redeemable Preference
Shares are redeemable on or before July 15, 2011 with an option to the company
exercisable at its discreation, to call the Preference Shares for redemption at
any time before maturity. As on 31st March 2011, the company has not
exercised its option of redemption
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
01.07.2008 to
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
522.000 |
510.500 |
510.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(979.861) |
(468.254) |
(176.882) |
|
|
NETWORTH |
(457.861) |
42.246 |
333.618 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
2207.500 |
1000.000 |
250.000 |
|
|
TOTAL BORROWING |
2207.500 |
1000.000 |
250.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
1749.639 |
1042.246 |
583.618 |
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|
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1188.822 |
554.842 |
396.030 |
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Capital work-in-progress |
104.528 |
45.529 |
0.131 |
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|
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INVESTMENT |
9.222 |
150.000 |
0.000 |
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DEFERRED TAX ASSETS |
56.027 |
23.724 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
611.798
|
325.970 |
197.799 |
|
|
Sundry Debtors |
40.556
|
30.477 |
20.699 |
|
|
Cash & Bank Balances |
52.066
|
49.418 |
28.012 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
400.801
|
224.322 |
106.118 |
|
Total
Current Assets |
1105.221
|
630.187 |
352.628 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
671.551 |
344.902 |
149.250 |
|
|
Other Current Liabilities |
26.341
|
8.563 |
8.984 |
|
|
Provisions |
16.289
|
8.571 |
6.937 |
|
Total
Current Liabilities |
714.181
|
362.036 |
165.171 |
|
|
Net Current Assets |
391.040
|
268.151 |
187.457 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1749.639 |
1042.246 |
583.618 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
01.07.2008 to
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from
Operations |
5194.777 |
2895.166 |
1225.661 |
|
|
|
Other Income |
3.994 |
1.818 |
14.787 |
|
|
|
TOTAL (A) |
5198.771 |
2896.984 |
1240.448 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
5458.157 |
3109.690 |
1384.849 |
|
|
|
TOTAL (B) |
5458.157 |
3109.690 |
1384.849 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(259.386) |
(212.706) |
(144.401) |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
163.067 |
54.406 |
10.076 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(422.453) |
(267.112) |
(154.477) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
86.463 |
47.984 |
21.617 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(508.916) |
(315.096) |
(176.094) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(32.303) |
(23.724) |
0.788 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(476.613) |
(291.372) |
(176.882) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(468.254) |
(176.882) |
-- |
|
|
|
|
|
|
|
|
|
|
BROUGHT FORWARD
LOSS ARISING OUT OF AMALGAMATION |
(31.802) |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
AMALGAMATION
EXPENSES ADJUSTED |
(3.192) |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(979.861) |
(468.254) |
(176.882) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
20.028 |
21.296 |
NA |
|
|
TOTAL EARNINGS |
20.028 |
21.296 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Finished Products |
0.000 |
0.101 |
0.109 |
|
|
|
Capital Goods |
26.505 |
39.533 |
0.000 |
|
|
TOTAL IMPORTS |
26.505 |
39.634 |
0.109 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(9.31) |
(5.71) |
(3.46) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
01.07.2008 to
31.03.2009 |
|
PAT / Total Income |
(%) |
(9.17)
|
(10.06)
|
(14.26) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.80)
|
(10.88)
|
(14.37) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(22.18)
|
(26.59)
|
(23.52) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.11
|
(7.46)
|
(0.53) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(6.38)
|
32.24 |
1.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55
|
1.74 |
2.13 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions 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 |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
No |
|
19. Payments terms |
No |
|
20. Export / Import details |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
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 |
Details of Sundry Creditors:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
- Creditors due small micro enterprises |
0.000 |
0.000 |
|
|
- Creditors due others |
671.551 |
344.902 |
|
|
Total |
671.551 |
344.902 |
149.250 |
OPERATIONS
For the year ended
on 31st March, 2011, the net sales (excluding excise and VAT) of the
Company was Rs. 4584.008 millions, an increase of 76.71 % as compared to
previous year ended March 31, 2010 and the Net Loss was recorded at Rs.476.611
millions.
The Scheme of
Amalgamation of Optim Estates Private Limited (Optim) with the Company as
approved by the High Court of Bombay (the 'Scheme') has become effective on 20th
September 2010. The Appointed date of the Scheme was 1st April 2009.
In terms of the Scheme, on 11th October 2010, the Company issued
10,00,000 fully paid Redeemable Preference Shares of Rs.10/- each and 1,50,000
equity shares to the equity shareholders of erstwhile Optim. Accordingly, the
results of the Company for the year 31st March 2011 include the
figures of Optim with effect from 1st April 2009
During the year,
the Company invested in a company, Virtuous Shopping Centres Private Limited ('Virtuous').
Virtuous is a Special Purpose Vehicle and a joint venture company of subject
and Virtuous Trustees Private Limited and others, nominees of Xander. The main
object of Virtuous is to develop and deal in retail malls and shopping centres.
The Company has invested a sum of Rs.6.732 millions in Virtuous and holds
66.66% of the paid up capital.
The Company
continues to view food and grocery (F and G) retailing as a substantial
opportunity, which is worthy of being seriously pursued in the medium term. F
and G remains one of the largest categories and is estimated at around 60% of
consumer spending.
Share of spend and
organized retail penetration
Nevertheless,
given the significantly lower gross margins on F and G vis-a-vis other
merchandize (and therefore formats), the need to evolve a economically viable
business model is viewed to be critical. The performance of Star Bazaar
business over the last two years continues to be encouraging and has aided the
pursuit of the stated expansion plans with greater conviction. Nevertheless,
this business continues to incur operational losses, especially on account of
the under absorption of shared services and corporate costs. Also, they believe
this trend would continue until the business reaches a critical mass over the
next few years.
During the year,
the Company opened four new stores in
Star Bazaar
Hypermarkets
Subject has a
franchise and a wholesale supply arrangement with Tesco Plc of
The plan and key
initiatives in respect of the Star Bazaar stores include:
• The intention to
scale up the number of stores in the country to about 50 over the medium term.
The pace of
roll-out is hindered primarily on account of slower than expected pace of
delivery of signed properties by developers and they see this to be a
continuing challenge even going forward.
• Large box format
- as with the existing store portfolio, the intent in the medium term is to
continue to focus on rollout of Star Bazaar stores with a footprint in the
region of fifty thousand square feet, especially given the need to contain per
square foot rentals. Further, as a conscious strategy additional square footage
has been secured in select locations in order to facilitate sub-lease to
adjacent retail offerings and improve realization.
• Local sourcing
and consumer catchment - establishing robust regional sourcing arrangements is
seen to be inevitable in-order to service a chain of large hypermarkets in a
profitable manner. Also, primarily from a traffic and consumer behavior
perspective, they do not see 'outside city limits' stores being sustainable and
hence the intent is to continue to focus on the immediate hinterland of a
proposed store and the catchment it affords.
• Emphasis in Star
Bazaar to be on Food as well as Non-Food merchandize - this from a gross margin
as well as from range availability perspective for the customer. However, they
are yet to witness any material shift in mix towards non-food merchandize.
• Own label
offerings - over time as the branding of the stores get entrenched, emphasis
would be on increasing the contribution of 'own label' offerings across
categories. This emphasis is also consistent with the estimated share of
private label merchandize seen in the case of entrenched international
retailers.
The results of the
Company have broadly been in line with expectations and mostly encouraging -
with existing stores reporting strong same store sales growth especially in the
last two years.
They see
increasing visibility of scaling up this operation into a consequential and
eventually profitable business over the next few years, aided by the strategies
being pursued and the expertise accessed from Tesco through the franchise and
wholesale supply arrangements. However, in the interim this business continues
to warrant significant investment of capital and is expected to take a few more
years before the shared services and central costs get covered by the
contribution generated from stores.
SHARE CAPITAL
In terms of the
Scheme of Amalgamation Sanctioned by the High Court of Bombay, the authorised
share capital of the erstwhile Optim was combined with authorised share capital
of the Company.
Accordingly, the
Authorised share capital of the Company now stands at Rs.610.500 millions
divided into 60050000 equity shares of Rs.10/- each and 1000000 Preference
shares of Rs.10/- each. The Authorised Share Capital is now proposed to be
increased to Rs.1000.500 millions divided into 99050000 equity shares of
Rs.10/- each and 1000000 Preference Shares of Rs.10 each. Pursuant to provisions
of section 94 of the Companies Act, 1956, the approval of the members to the
proposal is being sought at the ensuing Annual General Meeting.
Consequent to the
allotment of shares in terms of the Scheme, the paid up share capital of the
Company was increased by Rs.11.500 millions and stands at Rs.522.000 millions
divided into 51200000 Equity Shares of Rs.10/- and 1000000 Redeemable
Preference Shares of Rs.10/-.
AMALGAMATION OF
OPTIM ESTATES PRIVATE LIMITED WITH TRENT HYPERMARKET LIMITED
The Hon'ble Highcourt
of Judicature at Bombay has approved the scheme of Amalgamation of Optim
Estates Private Limited (Optim) with the Company vide Order dated 27th
August, 2010 and the scheme has become effective upon filing of the certified
true copy of the order with the Registrar Of Companies, Maharashtra on 20th
September, 2010. The appointed date of the scheme was 1st April,
2009. Optim’s business activity is that of activities and operations as buyers,
sellers, builders, contractors, construction company, developers, dealers in or
in connection with land, buildings and immovable properties and rights therein
and of providing services on all matters and problems in the field of building,
construction, and development of land and properties. The scheme is effective
from the Appointed Date and has been operative from the Effective date. As on
the effective date, Optim was 100% subsidiary of Trent Limited, the Company’s
holding company
In terms of the scheme
a)
All the Assets and Liabilities of Optim stands
transferred to and vested in the company with effect from the Appointed date
b)
The company has issued to the shareholders of
Optim, 15 fully paid Equity Shares of Rs.10 each for every 1 fully paid Equity
shares of Rs 10 of Optim and 1 fully paid 10% p.a. Redeemable Preference Share
of Rs.10 each for every 1 fully paid Preference shares of Rs.10 each of Optim.
Accordingly, the Company on 11th October 2010 has issued 10,00,000
10% p.a. Redeemable Preference Shares of Rs. 10 each and 150000 Equity shares
of Rs.10 each to Trent limited (holding Company) as consideration for
amalgamation of optim
c)
The Scheme of Amalgamation is accounted for under
the Purchase Method as contained in AS 14 - Accounting for Amalgamation. The
assets and liabilities have been recognized at their respective book values and
the difference between consideration paid and the book value of assets and
liabilities transferred has been recognized as goodwill in the books of
accounts. The same has been fully written off in current year. All cost and expenses
in connection to the implementation of the Scheme has been borne by Company and
booked in Amalgamation Suspense Account and the same has been adjusted against
the brought forward balance in Profit and Loss Account.
CONTINGENT LIABILITIES: (As on 31.03.2011)
1.
Estimated amount of contracts remaining to be
executed on capital account and not provided for Rs.48.860 millions
2.
Contingent Liabilities in respect of Sales Tax Demands
against which the Company has filed appeals Rs.11.912 millions
FIXED ASSETS:
v Goodwill
v
v Buildings
v Plant and Machinery
v Furniture, Fixtures, Office and Other Equipments
v Vehicles
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 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.55.41 |
|
|
1 |
Rs.86.04 |
|
Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
DPT |
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 |
4 |
|
--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 |
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.