MIRA INFORM REPORT

 

 

Report Date :

28.06.2012

 

IDENTIFICATION DETAILS

 

Name :

MERCURY TRAVELS LIMITED (w.e.f. 11.08.1989)

 

 

Formerly Known As :

MERCURY TRAVELS (INDIA) LIMITED

 

 

Registered Office :

4, Mangoe Lane, Kolkata – 700 001, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

31.03.1948

 

 

Com. Reg. No.:

21-016503

 

 

Capital Investment / Paid-up Capital :

Rs.42.500 millions

 

 

CIN No.:

[Company Identification No.]

U63040WB1948PLC016503

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALM00961C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in providing Tour and Travel Related Services that include Air Ticketing, Car Rentals, Inbound Tourism, Purchase and Sale of Foreign Exchange, Overseas and Domestic Holiday Packages, Conferences, Outbound Tours, Events and Exhibition Management.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 473000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company 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. Shashank

Designation :

General Manager in Finance

Contact No.:

91-22-66151140

Date :

27.06.2012

 

 

LOCATIONS

 

Registered Office :

4, Mangoe Lane, Kolkata – 700 001, West Bengal, India

Tel. No.:

91-33-40002200

Fax No.:

91-33-22486785

E-Mail :

isdho@oberoigroup.com

For assistance with online bookings: support@mercurytravels.in

For Information on Indian Holidays: india@mercurytravels.in

For Information on Holidays outside India: outbound@mercurytravels.in

For Information on Forex/ My Global Money Card: forex@mercurytravels.in

For Vacancies/ HR Team: hr@mercurytravels.in

For Partnership interests and Press Related queries: nancy.castelino@mercurytravels.in

media@mercurytravels.in

For feedback on our site: support@mercurytravels.in

Website :

http://www.mercurytravels.co.in

 

 

Corporate Office :

The Oberoi, Oberoi Shopping Centre, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No.:

91-22-66150627

Fax No.:

91-22-22023663

 

 

Branch Office 1 :

70, Dr. V.B. Gandhi Marg, Kalaghoda, Mumbai – 400 023, Maharashtra, India

Tel. No.:

91-22-66153479-82/ 66151140

 

 

Branch Office :

Also located at:

 

v      Mumbai

v      Agra

v      Ahmedabad

v      Bangalore

v      Chennai

v      Cochin

v      Panjim, Goa

v      Gurgaon

v      Jaipur

v      Kolkata

v      New Delhi

v      Bhubaneswar

v      Pune

v      Secunderbad

v      Udaipur

v      Varanasi

 

 

Overseas Office 1 :

11 Faas Court, West Orange, NJ 07052, USA

Tel. No.:

+1 212 967 0050

Fax No.:

+1 973 669 8056

 

 

Overseas Office 2 :

Kurhessen Strasse 6, 60431 Frankfurt Main, Germany

Tel. No.:

+49-69-51 26 20

Fax No.:

+49-69-52 18 49

 

 

Overseas Office 3 :

Papenhuderstrasse 36, 22087 Hamburg, Germany

Tel. No.:

+49-40-22 75 63 37

Fax No.:

+49-40-22 75 63 38

 

 

Overseas Office 4 :

London, United Kingdom

Tel. No.:

+44 79427 41352

 

 

Overseas Office 5 :

AV, Belgrano 1377/8 B, 1093 Buenos Aires, Argentina

 

 

DIRECTORS

 

As on 28.09.2011

 

Name :

Mr. Prithviraj Singh Oberoi

Designation :

Chairman cum Managing Director

Address :

Villa Aashiana, Kapashera Bijwasan, Delhi – 110 037, India

Date of Birth/Age :

03.02.1929

Date of Appointment :

28.02.1952

DIN No.:

00051894

 

 

Name :

Mr. Tej Kumar Sibal

Designation :

Director

Address :

35A, Oberoi Apartments, 2, Sham Nath Marg, Delhi – 110 054, India

Date of Birth/Age :

25.10.1933

Date of Appointment :

26.10.2007

DIN No.:

00038992

 

 

Name :

Mr. Ashwini Manmohan Vir Kakkar

Designation :

Whole-Time Director

Address :

11B, Jolly Maker Apartments, No.1, 95-97, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

04.01.1954

Date of Appointment :

28.07.2006

DIN No.:

00390787

 

 

Name :

Ms. Kritika Kakkar

Designation :

Director

Address :

11B, Jolly Maker Apartments, No.1, 95-97, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

01.09.1985

Date of Appointment :

28.07.2006

DIN No.:

01312695

 

 

KEY EXECUTIVES

 

Name :

Mr. Shashank

Designation :

General Manager in Finance

 

 

Name :

Mr. Aashutosh Akshikar

Designation :

President and Chief Executive Officer

 

 

Name :

Mr. Ajay Bhatia

Designation :

Vice President and Chief Operating Officer

 

 

Name :

Ms. Nancy Castelino

Designation :

Vice President - Marketing and HR

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 27.09.2010

 

Names of Shareholders

 

 

No. of Shares

EIH Limited, India

 

845545

EIH Associated Hotels Limited, India

 

217175

EIH Limited jointly with Vikram Oberoi

 

1000

EIH Limited jointly with Arjun Oberoi

 

1000

EIH Limited jointly with P.K. Sarkar

 

10

EIH Limited jointly with G. Ganguli

 

2000

EIH Limited jointly with Manoj Kumar Mukherjee

 

10

EIH Limited jointly with Biswajit Mitra

 

10

Ashwini Kakkar

 

3183200

Manmohan Vir Kakkar

 

10

Suraj Kakkar

 

10

Kritika Kakkar

 

10

Amita Bhatia

 

10

Naveen Bhatia

 

10

Total

 

4250000

 

As on 28.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

25.10

Directors or relatives of directors

 

74.90

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in providing Tour and Travel Related Services that include Air Ticketing, Car Rentals, Inbound Tourism, Purchase and Sale of Foreign Exchange, Overseas and Domestic Holiday Packages, Conferences, Outbound Tours, Events and Exhibition Management.

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

v      United Bank of India, J.C. Das Building, 90/8, Connaught Circus, New Delhi – 110 001, India

v      Centurion Bank of Punjab Limited, 25/26 Maker Chambers III, Nariman Point, Mumbai - 400 021, Maharashtra, India

v      United Bank of India, Kolkata Branch, 4; N.C. Utta Sarani, Kolkata – 700 001, West Bengal, India

v      HDFC Bank Limited

v      ICICI Bank Limited

 

 

Facilities :

Secured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Term Loan

0.149

0.329

Cash Credit

164.326

147.365

Total

164.475

147.694

 

Particulars of Securities

United bank of India

a) The Term loan from ICICI Bank Limited is secured against hypothecation of Vehicles. Amount due with in twelve month Rs.0.149 million (2010 - Rs.0.180 million)

b) The cash credit from United Bank of India is secured by hypothecation of assets.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Ray and Ray

Chartered Accountants

Address :

205, Ansal Bhawan, 2nd Floor, 16, Kasturba Gandhi Marg, New Delhi – 110 001, India

Tel. No.:

91-11-23705415/ 23705416/ 41525215

Fax No.:

91-11-23705428

E-Mail :

rayandraydelhi@vsnl.com

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

AAAPS5670C

 

 

Enterprises in which Key Management Personnel have significant influence :

v      Flight Raja Travels Private Limited

v      Himalayan Sky Village

 

 

Enterprise in which the reporting enterprise has substantial interest (voting power of 20% or more) :

v      Mercury Himalayan Explorations Limited

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4250000

Equity Shares

Rs.10/- each

Rs.42.500 millions

 

 

 

 

 

Notes:

2050000 Equity Shares of Rs.10/- each were allotted as fully paid up Bonus Shares by Capitalisation of General Reserve.


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

42.500

42.500

42.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

75.870

71.432

80.679

4] (Accumulated Losses)

0.000

(13.594)

0.000

NETWORTH

118.370

100.338

123.179

LOAN FUNDS

 

 

 

1] Secured Loans

164.475

147.694

103.302

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

164.475

147.694

103.302

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

282.845

248.032

226.481

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

39.213

44.159

53.249

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

3.600

1.600

0.600

DEFERRED TAX ASSETS

16.008

22.044

13.909

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

7.090

9.126

8.981

 

Sundry Debtors

256.736

237.333

190.559

 

Cash & Bank Balances

56.540

51.411

24.700

 

Other Current Assets

0.189

0.109

0.007

 

Loans & Advances

93.368

75.217

77.733

Total Current Assets

413.923

373.196

301.980

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

161.568

165.050

120.075

 

Other Current Liabilities

11.513

11.812

8.720

 

Provisions

16.818

16.105

14.462

Total Current Liabilities

189.899

192.967

143.257

Net Current Assets

224.024

180.229

158.723

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

282.845

248.032

226.481

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Commission

106.071

61.840

43.103

 

 

Other Income

157.142

131.840

137.458

 

 

TOTAL                                     (A)

263.213

193.680

180.561

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employees’ Remuneration and Welfare Expenses

112.097

103.962

131.938

 

 

Administrative, Selling and Other  Expenses

90.835

87.181

105.776

 

 

Repairs and Maintenance

6.734

7.901

8.346

 

 

Exceptional Items – Profit on Sale of Building

0.000

0.000

(46.752)

 

 

TOTAL                                     (B)

209.666

199.044

199.308

 

 

 

 

 

Less

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

53.547

(5.364)

(18.747)

 

 

 

 

 

Less

INTEREST & FINANCIAL EXPENSES                 (D)

19.554

16.024

12.636

 

 

 

 

 

 

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

33.993

(21.388)

(31.383)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

9.925

9.703

8.631

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                   (G)

24.068

(31.091)

(40.014)

 

 

 

 

 

Less

TAX                                                                  (H)

6.036

(8.250)

(9.914)

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

18.032

(22.841)

(30.100)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(52.513)

(29.672)

0.428

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(34.481)

(52.513)

(29.672)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Inbound tours and allied services

(as certified by the Management and Company bankers)

211.275

166.802

258.978

 

TOTAL EARNINGS

211.275

166.802

258.978

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

4.24

(5.37)

(7.08)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

6.85

(11.79)

(16.67)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

22.69

(50.28)

(92.83)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

5.31

(7.45)

(11.26)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.20

(0.31)

(0.32)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.99

3.40

2.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.18

1.93

2.11

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

 

 

 

- Total outstanding dues of Micro and Small Enterprises

--

--

--

- Total outstanding dues of Creditors other than Micro and Small Enterprises

161.568

165.050

120.075

Total

161.568

165.050

120.075

 

 

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

Yes

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

 

FINANCIAL HIGHLIGHTS:

 

The Foreign and Indian markets economically improved compare to the 2009-10. Corporate business improved and because of that their business is also gone up. The improved performance during the year was driven primarily by increase in sale compared to the last year and because of that their earnings from airline, Foreign exchange business and hotel reservations The Board is confident that barring unforeseen circumstances, the performance during the current year will improve further. In view of the carried forward losses and with a view to conserve resources for future expansion, the Directors have decided to skip dividend for the year.

 

The Company is also focusing on improving employee productivity. With the introduction of skills training, service quality, familiarization and team building initiatives, the Company intends to be the employer of choice in the Travel and Tourism Industry.

 

Contingent Liabilities not provided for in respect of: (As on 31.03.2011)

 

1. Claim against the company not acknowledged as debts

v      Demand made by landlord Rs.61.953 millions  

v      Disputed service tax demand Rs.1.800 millions against which appeals are preferred.

 

2. Some employees have filed claims in various forums and sought relief. The ultimate liability, if any, with respect to their claims is not ascertainable and in the opinion of the management would not have a material impact on these accounts.

 

3. The Income tax department to gone Into appeal to Hon'ble High Court of Kolkata in the matter of claim made by the Company in respect of the deductions under section 80HHD of the Income Tax Act, 1961 for the assessment year 2001-02. Pending decision, further liability, if any not ascertainable.

 

FIXED ASSETS:

Tangible Assets

v      Building

v      Furniture and Fittings

v      Computers

v      Air Conditioning

v      Plant and Machinery

v      Vehicles

v      Leased Vehicles

Intangible Assets

v      Computer Software

v      Business Rights 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.57.22

UK Pound

1

Rs.89.42

Euro

1

Rs.71.46

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

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

3

--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

 

43

 

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.