MIRA INFORM REPORT

 

 

Report Date :

10.04.2013

 

IDENTIFICATION DETAILS

 

Name :

THE MOBILESTORE SERVICES LIMITED (w.e.f. 10.08.2010)

 

 

Formerly Known As :

THE MOBILESTORE SERVICES PRIVATE LIMITED (w.e.f. 03.09.2007)

MOBILE STORE SERVICES PRIVATE LIMITED

 

 

Registered Office :

Equinox Business Park, Building-B, 1st Floor, Old Swan Mills Compound, L.B.S. Marg, Kurla (West), Mumbai – 400 070, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

16.04.2007

 

 

Com. Reg. No.:

11-169998

 

 

Capital Investment / Paid-up Capital :

Rs.8.400 millions

 

 

CIN No.:

[Company Identification No.]

U74999MH2007PLC169998

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM32195C

 

 

PAN No.:

[Permanent Account No.]

AAFCM1095F

 

 

Legal Form :

A Closely Held Public Limited Liability Company 

 

 

Line of Business :

Subject is engaged in the business of distribution of telecom, consumer electronics and related products including mobile handsets, accessories, domestic appliances and other consumer durable products.

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (42)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 2323000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of the “Mobilestore Service Mauritius Limited”. It is an established company having a satisfactory track record.

 

As per the scheme of Arrangement, the cash and carry business of the Mobilestore Limited has been merged with the subject company with effect from April 1, 2010.

 

The company has performed well in the year 2012. Financial position seems to be improving.

 

Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment.

 

In view of strong holding, the company can be considered normal for business dealings at usual trade terms and condition.

 

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 :

Ms. Neelam

Designation :

Company Secretary

Contact No.:

91-22-61276580

Date :

09.04.2013

 

 

LOCATIONS

 

Registered Office :

Equinox Business Park, Building-B, 1st Floor, Old Swan Mills Compound, L.B.S. Marg, Kurla (West), Mumbai – 400 070, Maharashtra, India

Tel. No.:

91-22-67447727/ 66601100/ 40011100

Fax No.:

91-22-67082177/ 66669435/ 67447530

E-Mail :

neelamv@themobilestore.in

 

 

Corporate Office :

Unit 501 and 502, Kohinoor City, Kirol Road, Off LBS Marg, Kurla (West), Mumbai – 400 070, Maharashtra, India

Tel. No.:

91-22-60006363

E-Mail :

mobicares@mytns.in

 

 

Retail Office:

Located at:

 

·         Kolkata

·         Chennai

·         Maharashtra

·         Hyderabad

·         Bangalore

·         Cochin

 

 

DIRECTORS

 

As on 28.09.2012

 

Name :

Mr. Narottam Banulal Vyas

Designation :

Director

Address :

A-3/1701, Whispering Palms, Lokhandwala Complex, Akurli Road, Kandivali (East), Mumbai – 400 101, Maharashtra, India

Date of Birth/Age :

03.07.1954

Qualification :

Chartered Accountant and Company Secretary

Date of Appointment :

15.12.2009

DIN No.:

00055499

 

 

Name :

Mr. Mark Agnelo Silgardo

Designation :

Director

Address :

402/502, Anclare Abode, Plot No.96, St. Andrews Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

20.04.1958

Qualification :

MBA in International Finance, Post graduate studies in Marketing

Date of Appointment :

03.03.2010

DIN No.:

02298310

 

 

Name :

Mr. Neeraj Gupta

Designation :

Director

Address :

Panhar WorIi Sea Face Khan, Abdul Gafar Khan Road, Worli, Mumbai - 400 045, Maharashtra, India

Date of Birth/Age :

20.11.1968

Qualification :

Chartered Accountant

Date of Appointment :

15.12.2009

DIN No.:

00317395

 

 

Name :

Mr. Alok Gupta

Designation :

Director

Address :

Flat No.410, Embassy Tranquil, 22, 8th Main, 3rd Block, Koramangala, Bangalore - 560 034, Karnataka, India

Date of Birth/Age :

02.05.1966

Qualification :

Management Graduate and Attended the Advanced Management Program at Harvard Business School

Date of Appointment :

18.04.2011

DIN No.:

02330045

 

 

KEY EXECUTIVES

 

Name :

Ms. Neelam

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.09.2012

 

Names of Shareholders (Equity Shares)

 

No. of Shares

 

The Mobilestore Limited, India 

 

9998

Rajiv Agarwal  - Nominee and The Mobilestore Limited, India 

 

1

The Mobilestore Services (Mauritius) Limited, Mauritius

 

700000

Tara India Holdings A Limited, Mauritius

 

10

IL and FS Trust Company Limited on behalf of Tara India Fund III Domestic Trust, India 

 

10

IL and FS Trust Company Limited on behalf of Tara India Fund III Trust, India 

 

10

Narottam Babulal Vyas – Nominee and The Mobilestore Limited, India

 

1

Essar Retail Holdings Limited, India

 

33437

Total

 

743467

 

As on 28.09.2012

 

Names of Shareholders (Preference Shares)

 

No. of Shares

 

Tara India Holdings A Limited, Mauritius

 

76663

IL and FS Trust Company Limited on behalf of Tara India Fund III Domestic Trust, India 

 

14005

IL and FS Trust Company Limited on behalf of Tara India Fund III Trust, India 

 

11844

Total

 

102512

 

As on 28.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

91.81

Bodies corporate

 

8.19

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of distribution of telecom, consumer electronics and related products including mobile handsets, accessories, domestic appliances and other consumer durable products.

 

 

Products :

Item Code No. (ITC Code)

99611851

Product Description

Electronic and Telecommunications Equipments and Parts thereof

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the Management

 

 

Bankers :

Not Available

 

 

 

 

 

Banking Relations :

--

 

 

Name :

S.R. Batliboi and Company

Chartered Accountants

Address :

14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra, India

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

AALFS0506L

 

 

Holding Company:

The Mobilestore Service Mauritius Limited (TMSSML), Mauritius 

 

 

Ultimate Holding Company:

Essar Global Limited (EGL)

 

 

Fellow Subsidiary Company :

Aegis Limited, India (CIN No.: U99999MH1992PLC064767)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1000000

Equity Shares

Rs.10/- each

Rs.10.000 millions

250000

Non Cumulative Compulsorily Convertible Preference Shares

Rs.10/- each

Rs.2.500 millions

 

 

 

Rs.12.500 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

743467

Equity Shares

Rs.10/- each

Rs.7.400 millions

102512

Non Cumulative Compulsorily Convertible Preference Shares

Rs.10/- each

Rs.1.000 million

 

 

 

Rs.8.400 millions

 

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

 

Equity shares

31.03.2012

Nos.

Amount

(Rs. In millions)

At the beginning of the period

743467

7.400

Issued during the period

--

--

Outstanding at the end of the period

743467

7.400

 

 

NCCCPS

31.03.2012

Nos.

Amount

(Rs. In millions)

At the beginning of the period

102512

1.000

Issued during the period

--

--

Outstanding at the end of the period

102512

1.000

 

Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of Equity Shares is entitled to one vote per share.

 

In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

 

Terms/ rights attached to NCCCPS

During the previous year, 4612 number 0.001% NCCCPS with a face value of Rs.10 per share were issued pursuant to merger of Cash and Carry business.

 

Each NCCCPS will be compulsorily converted into equity share after the end of 20 year from the date of Issue or liquidity event as per the terms of NCCCPS, whichever is earlier.

 

The NCCCPS are compulsorily convertible at an agreed conversion price based on various conversion options as per the terms of NCCCPS allotment.

 

Shares held by holding company

 

Out of equity and preference shares issued by the Company, shares held by its holding company, ultimate holding company and their subsidiaries/ associates are as below:

 

Particulars

Amount

(Rs. In millions)

The Mobilestore Services (Mauritius) Limited, the holding Company.

 

700,000 Equity Shares of Rs.10 each fully paid-up

7.000

The ultimate holding company is Essar Global Limited

 

 

Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

 

Particulars

Nos.

Equity shares of Rs.10 each are allotted as fully paid up pursuant to the scheme of merger other than cash.

33437

Non Cumulative Compulsorily Convertible Preference Shares of Rs.10 each are allotted as fully paid up other than cash pursuant to the merger of Cash and Carry business.

4612

 

Details of shareholders holding more than 5% shares in the Company

 

 

Name of the shareholder

As at 31st March, 2012

Nos.

% holding in the class

Equity shares of Rs.10 each fully paid

 

 

The MobileStore Services (Mauritius) Limited, the holding Company.

700000

94.15%

Non Cumulative Compulsorily Convertible Preference Shares of Rs.10/- each fully paid-up

 

 

Tara India Holdings A limited

76663

74.78%

IL&FS Trust Company Limited on behalf of Tara India Fund III Trust

11844

11.55%

IL&FS Trust Company Limited on behalf of Tara India Fund III Domestic Trust

9393

9.16%

 

As per of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

 

 

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

8.400

8.400

8.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

572.300

561.100

957.400

4] (Accumulated Losses)

0.000

0.000

(27.400)

NETWORTH

580.700

569.500

938.100

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

580.700

569.500

938.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2.100

4.100

0.000

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
17.700
124.500

0.000

 

Sundry Debtors
1049.200
1634.500

897.600

 

Cash & Bank Balances
1.700
57.500

8.300

 

Other Current Assets
0.000
1.500

0.000

 

Loans & Advances
430.000
597.700

680.600

Total Current Assets
1498.600
2415.700

1586.500

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
710.500
1029.900

644.200

 

Other Current Liabilities
197.100
809.900

3.500

 

Provisions
12.400
10.500

0.700

Total Current Liabilities
920.000
1850.300

648.400

Net Current Assets
578.600
565.400

938.100

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

580.700

569.500

938.100

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

12084.700

12138.800

1078.100

 

 

Other Income

61.800

39.700

2.400

 

 

TOTAL                                     (A)

12146.500

12178.500

1080.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Purchases of stock-in-trade

11852.300

11847.600

1107.200

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

18.500

23.800

 

 

 

Employee benefit expense

194.700

252.000

 

 

 

Other expenses

67.800

73.900

 

 

 

TOTAL                                     (B)

12133.300

12197.300

1107.200

 

 

 

 

 

Less

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

13.200

(18.800)

(26.700)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.000

0.000

0.000

 

 

 

 

 

 

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

13.200

(18.800)

(26.700)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2.000

10.700

0.000

 

 

 

 

 

 

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

11.200

(29.500)

(26.700)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

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

11.200

(29.500)

(26.700)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(396.300)

(27.400)

(0.700)

 

 

 

 

 

 

AMOUNT TRANSFERRED ON MERGER OF CASH AND CARRY BUSINESS

--

(339.400)

--

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(385.100)

(396.300)

(27.400)

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

15.07

(39.81)

(171.10)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.09
(0.24)

(2.47)

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

0.09
(0.24)

(2.48)

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.75
(1.22)

(1.68)

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.02
(0.05)

(0.03)

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00
0.00

0.00

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.63
1.31

2.45

 

 

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

710.500
1029.900

644.200

 

 

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

No

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

 

 


CORPORATE INFORMATION

 

The Company was originally incorporated on April 16, 2007 as The MobileStore Services Private Limited. On August 10, 2010, the Company changed its name to The MobileStore Services Limited, consequent to conversion to public company.

 

The Company is engaged in the business of distribution of telecom, consumer electronics and related products including mobile handsets, accessories, domestic appliances and other consumer durable products. The Company commenced the said business activity in January, 2010.

 

The Company is a subsidiary of Essar Global Limited, the ultimate holding company.

 

MERGER OF CASH AND CARRY BUSINESS

 

In the previous year with effect from April 1, 2010 (the Appointed Date), pursuant to a Scheme of Arrangement (the Scheme) under sections 391 to 394 of the Companies Act,1956, the Cash and Carry business of The MobileStore Limited (TMSL) was merged with the Company.

 

In terms of the approved Scheme, all assets and liabilities of the Cash and Carry business of TMSL were transferred to the Company with effect from the Appointed Date at their respective book values on that date.

 

The difference between the consideration of Rs.0.400 million (being Equity Shares and Preference Shares of the Company issued) and the Net Book Value of assets and liabilities transferred and debited to Statement of Profit and Loss amounting to Rs.339.400 millions in the previous year, in accordance with the Scheme.

 

FIXED ASSETS:

 

Tangible Assets

·         Furniture and Fixtures

·         Office Equipment

·         Computers

Intangible Assets

·         Software

 

WEBSITE DETAILS:

 

NEWS:

 

THE MOBILESTORE LOOKS FOR PROFIT THIS YEAR

 

More than five years after it launched its first outlet, Essar Group’s handset retail chain, The Mobile Store, expects to record operating profits in the current financial year.

 

Of late, the chain has expanded through shop-in-shops, franchisees and its e-commerce site, Chief Executive Officer Himanshu Chakrawarti told Business Standard.

 

Of its 1,200-odd outlets, the chain has, in the last two years, closed 300 stores that recorded losses. Recently, the chain had also shut its consumer durable chain The Electronic Store. “All loss-making stores have been shut to have sustainable business and provide profitability to shareholders. Now, nearly 90 per cent of our stores are profitable, while the rest are on track to becoming profitable,” Chakrawarti said, adding, “We have grown six to seven per cent in 2011-12, despite closing 30 per cent of our stores. We expect growth of 30-35 per cent in 2012-13.”

 

When it launched the venture in early 2007, 2,500 stores were scheduled to be opened by 2010. It had also set a revenue target of Rs.50000.000 millions by 2010 and expected to break even within two to three years of launch.

 

However, like other retailers that rapidly opened stores earlier, it was forced to scale down operations.

 

Aditya Birla Retail, which also launched operations in 2006-07, had to shut 75 stores in 2009-10. The company recently shut 50 supermarkets to stem losses. According to sources in the company, the retailer needs at least two to three years to turn profitable.

 

Kishore Biyani’s Future Group had also scaled down operations of Ezone, its consumer durables chain. The stores, earlier present in 18 cities, were later limited to only six major cities.

 

Chakrawarti said growth in smartphone sales had aided modern retailers such as The MobileStore. “While the overall mobile market has remained constant, smartphone sales have grown from 0.5 million a year ago to 1.7 million handsets,” he said.

 

Annual mobile phone sales in India stand at about 13 million. While The MobileStore has a share of 33 per cent in total sales, BK Modi’s Spice Hotspot and South-based Univercell have a share of 20-25 per cent each.

 

Naimish Dave, director at OC&C Strategy Consultants, said, “Since the category is very price-driven, it makes sense to rationalise stores, cut costs and focus on alternatives to push sales….Volumes give players better bargaining power with suppliers, but that is limited play. They have to watch out for costs.”

 

Chakrawarti said The MobileStore had seen a 15 per cent rise in average selling prices after it introduced the equated monthly installment (EMI) scheme in August 2011. The chain has tied up with banks such as State Bank of India and HDFC, waived processing fees and carried out a co-marketing exercise with brands to boost EMI-backed transactions.

 

It has also expanded through shop-in-shops, or small counters within large stores, of Raheja-owned Hypercity and is currently putting up such shops in Tata-owned Landmark, Future Group-partnered Staples and hypermarket chain Total, Chakrawarti said. “Shop-in-shops are profitable within the first month of their operations,” he added.

 

The company’s e-commerce site had also aided sales, and it was now supplying products to a number of other online companies, he added.

 

“We are as aggressive as earlier, but the model is different. Instead of doing everything ourselves, we have a de-risked and co-opted model," he said, adding, “We will open our own stores only in well-known locations in cities.”

 

 

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.54.46

UK Pound

1

Rs.83.13

Euro

1

Rs.70.99  

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

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

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

42

 

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.