MIRA INFORM REPORT

 

 

Report Date :

16.03.2012

 

IDENTIFICATION DETAILS

 

Name :

OTTO – AGN  INTERNATIONAL LIMITED

 

 

Liaison Office :

17th Floor, Building No. 5, Tower A, Phase III, DLF Cyber City, Gurgaon-122002, Haryana

 

 

Country :

India

 

 

Financials (as on) :

28.02.2011

 

 

Date of Incorporation :

11.06.1990

 

 

Capital Investment / Paid-up Capital :

Rs. 11.288 Millions

 

 

Legal Form :

Foreign Company

 

 

Line of Business :

Buyer and Importer of Garments.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Foreign Registered Company

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a foreign company registered in Hong Kong. Given address is a Liaison office of the company in India. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct.

 

It 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.

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office:

Located at Hong Kong

 

 

Liaison Office :

17th Floor, Building No. 5, Tower A, Phase III, DLF Cyber City, Gurgaon-122002, Haryana, India 

Tel. No.:

91-124-4882500

Fax No.:

91-124-4882599

E-Mail :

firstname.lastname@hermes-ottoint.com

Website :

http://www.oagn.com

 

 

Mumbai Office :

21/D, Film Center, 68, Tardeo Road, Mumbai-400034, Maharashtra, India

Tel. No.:

91-22-40775400

Fax No.:

91-22-40775411/5412

 

 

Bangalore Office :

Office #, T-11, 3rd Floor, Gem Plaza, # 66, Infantry Road, Bangalore-560001, Karnataka, India

 

 

DIRECTORS

 

Name :

Mr. Michael Dumke

Designation :

Director

Address :

33 Tai Tam Road, The Manhattan 5J, Tai Tam Hong Kong

Date of Appointment :

01.06.2011

 

 

Name :

Mrs. Gunhild Margarethe Nayar

Designation :

Director

Address :

Flat 13, 30 Bolton Gardens, London SW5, OAQ, England

 

 

Name :

Mr. Hanjo Schneider

Designation :

Director

Address :

Volksdorfer Weg, 173A, 22393 Hamburg, Germany

 

 

Name :

Mr. Manuel Ignacio Lopez

Designation :

Director

Address :

Flat A, 8/F, 26, Magazine Gap Road, Hong Kong

Date of Ceasing :

31.01.2011

 

 

Name :

Mr. Oliver Sandro Klinck

Designation :

Director

Address :

Langenhege 4B, 21645 Reinbek, Germany

Date of Appointment :

31.01.2011

Date of Ceasing :

01.06.2011

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

NOT AVAILABLE

 

 

BUSINESS DETAILS

 

Line of Business :

Buyer and Importer of Garments.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 BSR and Company

Chartered Accountants

Address :

Lodha Excetus, 1st Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalakshmi, Mumbai-400011, Maharashtra, India

Tel. No.:

91-22-39896000

Fax No.:

91-22-39836000

 

 

CAPITAL STRUCTURE

 

[NEW DELHI LIAISON OFFICE]

Rs. in Millions

PARTICULAR

28.02.2011

28.02.2010

 

 

 

HEAD OFFICE ACCOUNT

 

 

 

 

 

Balance brought forward

10.506

12.195

Add: Amount remitted by head office

60.660

57.272

 

71.166

69.467

Less:

 

 

Expenditure transferred from the statement of expenditure

59.878

58.961

 

 

 

BALANCE CARRIED FORWARD

11.288

10.506


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

[NEW DELHI LIAISON OFFICE]

 

PARTICULAR

28.02.2011

28.02.2010

28.02.2009

 

 

 

 

SOURCES OF FUNDS

 

 

 

 

 

 

 

Head Office Account

11.288

10.506

12.195

 

 

 

 

TOTAL

11.288

10.506

12.195

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

Fixed Assets [Net Block]

13.217

10.090

11.713

 

 

 

 

Current Assets, Loans and Advance and Other Current Assets

 

 

 

Cash and Bank Balances

2.484

1.738

1.802

Loans and Advances

4.291

6.057

7.025

Other Current Assets

0.450

0.000

0.000

Total

7.225

7.795

8.827

 

 

 

 

Less: Current Liabilities and Provision

 

 

 

Sundry Creditors

5.084

4.059

3.787

Other Current Liabilities

0.388

0.248

0.326

Provision

3.682

3.072

4.232

Total

9.154

7.379

8.345

 

 

 

 

Net Current Assets

(1.929)

0.416

0.482

 

 

 

 

TOTAL

11.288

10.506

12.195

 

 


 

STATEMENT OF EXPENDITURE FOR THE YEAR ENDED

 

[NEW DELHI LIAISON OFFICE]

 

PARTICULAR

28.02.2011

28.02.2010

28.02.2009

 

 

 

 

Salaries and Bonus

27.278

28.198

35.999

Contribution to Provident Fund

1.241

1.708

2.093

Staff Welfare Expenses

0.721

0.558

0.778

Traveling Expenses

5.207

4.255

4.591

Depreciation

2.638

2.608

3.147

Rent

8.696

10.481

13.777

Postage and Courier Charges

3.388

2.583

4.264

Telephone, Telex and Fax

1.144

1.066

1.507

Rates and Taxes

0.114

0.000

0.000

Electricity Charges

0.587

0.784

0.651

Repairs and Maintenance

0.000

0.000

0.000

Buildings

2.194

1.997

2.009

Others

1.102

0.973

1.124

Printing and Stationery

0.339

0.424

0.430

Car Expenses

1.414

1.491

1.478

Legal and Professional Charges

1.448

0.810

1.043

Loss on Write Down of Fixed Assets

0.592

0.000

0.000

Entertainment

0.277

0.842

0.542

Recruitment Expenses

0.444

0.193

0.318

Subscription and Sponsorship

0.000

0.000

0.014

Insurance

0.071

0.065

0.095

Book and Periodicals

0.004

0.019

0.009

Sample Expenses

0.052

0.051

0.073

Foreign Exchange Loss [Net]

0.003

0.009

0.010

Miscellaneous Expenses

0.109

0.018

0.037

 

 

 

 

Total Expenditure Incurred

59.063

59.133

73.989

 

 

 

 

Less: Profit / [Loss] on Sale of Assets [Net]*

(0.815)

0.205

0.000

Less: Reversal of lease equalization charge of previous year

0.000

0.000

1.672

 

 

 

 

Net Expenditure

59.878

58.928

72.317

 

 

 

 

Add: Fringe Benefit Tax

0.000

0.033

0.413

 

 

 

 

Expenditure Transferred to Head Office Account

59.878

58.961

72.730

 

 

NOTE: * The sale value of these assets is lower than their purchase price.

 


 

LOCAL AGENCY FURTHER INFORMATION

 

BACKGROUND:

 

The New Delhi Liaison Office [‘the office’] was established with approval from the Reserve Bank of India (RBI) through their Letter No. EC.CO.FID.2462/2550 (Activity) /89-90 dated 7 May 1990 and subsequent extensions granted till 31 October 2013. The management has filed an application with the RBI on 26 April 2010 for extension. The office has complied with the terms and conditions laid down in the approvals accorded by the RBI and hence, management believes that its aforesaid application for extension will be considered favourably by the RBI. Consequently, it has been considered appropriate to adopt the going concern assumption in preparation of these financial statements.

 

CONTINGENT LIABILITIES: [AS ON 28.02.2011]

 

Claims against the liaison office not acknowledged as debts amount to Rs.2.699 millions. During the previous years, a claim of Rs.2.699 millions including certain other consequential reliefs (e.g. future interest, costs of proceedings etc.) had been instituted by landlords of the liaison office’s earlier office at Gopal Das Bhawan, New Delhi, in the Honourable High Court of Delhi. The claim is being defended by the liaison office. In the current year, the trial and witness of liaison office has concluded and final arguments have to be addressed before the court.

 

 FIXED ASSETS:

 

·         Office Equipments

·         Furniture and Fittings

·         Leasehold Improvements

·         Vehicles

·         Computers

 

 

 


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.50.22

UK Pound

1

Rs.78.64

Euro

1

Rs.65.54

 


 

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.