MIRA INFORM REPORT

 

 

Report Date :

15.04.2013

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE JIO INFOCOMM LIMITED (w.e.f.22.01.2013)

 

 

Formerly Known As :

INFOTEL BROADBAND SERVICES LIMITED (w.e.f.19.07.2010)

INFOTEL BROADBAND SERVICES PRIVATE LIMITED

 

 

Registered Office :

3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

15.02.2007

 

 

Com. Reg. No.:

11-234712

 

 

Capital Investment / Paid-up Capital :

Rs. 51752.000 Millions

 

 

CIN No.:

[Company Identification No.]

U72900MH2007PLC234712

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PTLI10699D

MUMI179B

 

 

PAN No.:

[Permanent Account No.]

AABCI6363G

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of providing Broadband Services, Telecom and Information Technology enabled and related services.

 

 

No. of Employees :

Information denied by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 206500000

 

 

Status :

Project Under Implementation

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of ‘Reliance Industries Limited’. The project of the company is under implementation stage.

 

It holds an All India Internet Services Provider (ISP) Category ‘A’ License which entitles it to provide countywide ISP services in India.

 

The net worth of the company is good. It receives better support from its holding company.

 

Payment terms are unknown.

 

The company can be considered for business dealings with some caution. 

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Punit

Designation :

Accounts Department

Contact No.:

91-172-4604341

Date :

12.04.2013

 

 

LOCATIONS

 

Registered Office / Corporate Office :

3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400021, Maharashtra, India  

Tel. No.:

91-22-22785500

Fax No.:

91-22-22785560

E-Mail :

anuragp72@gmail.com

ratnesh.rukhariyar@ril.com

 

 

Head Office :

C-135, Industrial Aera, Phase 8, Mohali-160062, Punjab, India

Tel. No.:

91-172-4604341

 

 

DIRECTORS

 

AS ON 27.09.2012

 

Name :

Mr. Mukesh Dhirubhai Ambani

Designation :

Chairman

Address :

Sea Wind, 39, Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

19.04.1957

Date of Appointment :

22.06.2010

DIN No.:

00001695

 

 

Name :

Mr. Manoj Harjivandas Modi

Designation :

Director

Address :

10A/B, Building No.26, Sudhakar Co-operative Housing Society, Narayan Dabholkar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

03.07.1957

Date of Appointment :

22.06.2010

DIN No.:

00056207

 

 

Name :

Mr. Mahendra Nahata

Designation :

Director

Address :

House No.W-48, Greater Kailash, New Delhi-110048, India

Date of Birth/Age :

19.05.1959

Date of Appointment :

22.06.2010

DIN No.:

00052898

 

 

KEY EXECUTIVES

 

Name :

Mr. Raja Kolumum Ramchandran

Designation :

Manager

Address :

F No.1703-1704, Building No.1, Raheja Classique, New Link Road, Oshieara, Andheri (West), Mumbai-400053, Maharashtra, India

Date of Birth/Age :

19.12.1956

Date of Appointment :

22.06.2010

PAN No.:

ADLPR6435Q

 

 

Name :

Mr. Ratnesh Prasad Rukhariyar

Designation :

Secretary

Address :

302, Trishul Terrace, Plot No.36/37, Koperkhairane, Navi Mumbai-400709, Maharashtra, India

Date of Birth/Age :

06.02.1980

Date of Appointment :

16.11.2011

PAN No.:

AHEPR6330F

 

 

Name :

Mr. Punit

Designation :

Accounts Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 27.09.2012

 

Names of Equity Shareholders

No. of Shares

Reliance Industries Limited, India

4797689995

K Sethuraman jointly with Reliance Industries Limited, India

1

K. R.Raja jointly with Reliance Industries Limited, India

1

Pankaj Mohan Pawar jointly with Reliance Industries Limited, India

1

Ramesh Kumar Damani jointly with Reliance Industries Limited, India

1

Kiran Mathew Thomas jointly with Reliance Industries Limited, India

1

Anant Nahata

75753000

Nextwave Communications Private Limited, India

37876500

Infotel Telecom Holdings Private Limited, India

6312750

Digivision Content Solutions Private Limited, India

4292670

Vikash Agarwal

2020080

Infotel Infocomm Enterprises Private Limited, India

126255000

TOTAL

5050200000

 

 

Names of Preference Shareholders

No. of Shares

Reliance Industrial Investments and Holdings Limited, India

125000000

TOTAL

125000000

 

 

AS ON 31.03.2013

 

Names of 9% Cumulative Redeemable Preference Shareholders (Allottees)

No. of Shares

Reliance Industrial Limited, India

2647000000

TOTAL

2647000000

 

 

AS ON 27.09.2012

 

Equity Shares Break Up

Percentage of Holding

Bodies corporate

98.46

Directors or relatives of Directors

1.50

Other top fifty shareholders

0.04

TOTAL

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of providing Broadband Services, Telecom and Information Technology enabled and related services.

 

 

Services :

Broadband Services

 

 

GENERAL INFORMATION

 

Customers :

·         End Users

 

 

No. of Employees :

Information denied by the management

 

 

Bankers :

·         Axis Bank Limited, Maker Towers, 13th Floor, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

Tel No.:- 91-22-22165261

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Term Loans From Banks

8.900

0.000

 

 

 

TOTAL

8.900

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountant

Address :

714-715, Tulsiani Chambers, Nariman Point, Mumbai-400021, Maharashtra, India

PAN No.:

AAAFC0662N

 

 

Name :

S r Batliboi and Associates

Chartered Accountant

Address :

The Ruby, 14th Floor,, 29 Senapati Bapat Marg, Dadar (West), Mumbai-400028, Maharashtra, India

PAN No.:

AABFS3421N

 

 

Name :

Atul Kulshrestha and Company

Chartered Accountants

Address :

506, Surya Kiran Building, K.G. Marg, Connaught Place, New Delhi – 110 001, India 

Tel. No.:

91-11-41531330/ 41531331/ 41531332

E-Mail :

akc@consultant.com

PAN No.:

AAHFA0196J

 

 

Holding Company :

Reliance Industries Limited

CIN No.:- L17110MH1973PLC019786

 

 

Subsidiaries :

Infotel Telecom Limited

CIN No.:- U64204MH2011PLC213276

 

Rancore Technologies Private Limited

CIN No.:- U74999MH2007PTC168562

 

 

Fellow Subsidiaries :

Reliance Industrial Investments And Holdings Limited

CIN No.:- U65910MH1986PLC041081

 

Reliance Fresh Limited

CIN No.:- U01100MH1999PLC120563

 

Reliance Digital Retail Limited

CIN No.:- U70102MH2007PLC170415

 

Reliance Leisures Limited

CIN No.:- U52100MH2007PLC175533

 

Reliance Security Solutions Limited

CIN No.:- U51109MH2008PLC185401

 

 

CAPITAL STRUCTURE

 

 

AFTER 27.09.2012

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

7500000000

Equity Shares

Rs.10/- each

Rs. 75000.000 Millions

2500000000

Preference Shares

Rs.10/- each

Rs. 25000.000 Millions

 

TOTAL

 

Rs. 100000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

5050200000

Equity Shares

Rs.10/- each

Rs. 50502.000 Millions

125000000

Preference Shares

Rs.10/- each

Rs. 1250.000 Millions

 

TOTAL

 

Rs. 51752.000 Millions

 

 

AS ON 31.03.2012

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

6004900000

Equity Shares

Rs.10/- each

Rs. 60049.000 Millions

150050000

Preference Shares

Rs.10/- each

Rs. 1500.500 Millions

 

TOTAL

 

Rs. 61549.500 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

5050200000

Equity Shares

Rs.10/- each

Rs. 50502.000 Millions

125000000

Preference Shares

Rs.10/- each

Rs. 1250.000 Millions

 

TOTAL

 

Rs. 51752.000 Millions

 

 

AS ON 27.09.2012

 

Authorised Capital : Rs. 150000.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

5050200000

Equity Shares

Rs.10/- each

Rs. 50502.000 Millions

125000000

Preference Shares

Rs.10/- each

Rs. 1250.000 Millions

2647000000

9% Cumulative Redeemable Preference Shares

Rs.10/- each

Rs. 26470.000 Millions

 

TOTAL

 

Rs. 78222.000 Millions


 

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

51752.000

45335.000

25.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

(111.300)

(58.100)

0.000

4] (Accumulated Losses)

0.000

0.000

(9.908)

NETWORTH

51640.700

45276.900

15.192

LOAN FUNDS

 

 

 

1] Secured Loans

8.900

0.000

0.000

2] Unsecured Loans

96312.500

86892.500

74.729

TOTAL BORROWING

96321.400

86892.500

74.729

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

147962.100

132169.400

89.921

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

28.700

12.300

16.463

Capital work-in-progress

149694.200

133804.100

64.534

 

 

 

 

INVESTMENT

116.600

16.200

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000
0.000
0.000

 

Sundry Debtors

0.300
0.500
0.065

 

Cash & Bank Balances

11.200
9.300
1.607

 

Other Current Assets

0.000
0.000
0.000

 

Loans & Advances

1244.800
186.600
10.743

Total Current Assets

1256.300

196.400

12.415

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

0.000
0.000

1.746

 

Other Current Liabilities

1691.000
1856.500
0.616

 

Provisions

1442.700
3.100
1.129

Total Current Liabilities

3133.700

1859.600

3.491

Net Current Assets

(1877.400)
(1663.200)
8.924

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

147962.100

132169.400

89.921

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

1.200

2.000

1.478

 

 

Other Income

3.500

4.600

0.087

 

 

TOTAL                                     (A)

4.700

6.600

1.565

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock-in-trade

0.400

0.000

0.000

 

 

Employees Benefits Expenses

20.400

4.300

0.000

 

 

Other Expenses

27.500

45.400

6.461

 

 

TOTAL                                     (B)

48.300

49.700

6.461

 

 

 

 

 

Less

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

(43.600)

(43.100)

(4.896)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.900

0.000

0.000

 

 

 

 

 

 

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

(44.500)

(43.100)

(4.896)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

8.700

5.100

5.012

 

 

 

 

 

 

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

(53.200)

(48.200)

(9.908)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

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

(53.200)

(48.200)

(9.908)

 

 

 

 

 

 

IMPORTS VALUE

162.900

23.200

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.01)

(0.05)

(3.95)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

(1131.91)

(730.30)

(633.10)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(4433.33)

(2410.00)

(670.37)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(4.14)

(23.10)

(34.31)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.00

0.00

(0.65)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.87

1.92

4.92

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.40

0.11

3.56

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

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)

Yes

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Non convertible debentures for banks

10000.000

10000.000

Non convertible debentures for others

10000.000

10000.000

Foreign Currency Term Loans from Banks

76312.500

66892.500

 

 

 

TOTAL

96312.500

86892.500

 

 

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars

 

31.03.2012

31.03.2011

31.03.2010

Sundry Creditors

 

 

 

- Due to Micro, Small and Medium Enterprises

0.000

0.000

0.000

- Others

0.000

0.000

1.746

 

 

 

 

TOTAL

0.000

0.000

1.746

 

 

NOTE

 

Registered office has been shifted C-135, Industrial Aera, Phase 8, Mohali-160062, Punjab, India to the present address w.e.f. 21.08.2012.

 

 

OPERATIONAL REVIEW

 

The Company holds an All India Internet Service Provider (ISP) Category 'A' License which entitles it to provide countrywide ISP services in India. The Company is providing bandwidth to a few clients in a limited scale.

 

The Company was the only successful bidder in all of the 22 telecom service areas in the Broadband Wireless Access (“BWA”) spectrum auction conducted by Department of Telecommunications, Government of India. The Company can offer broadband services across the nation through the 20 Mhz, contiguous, pan-India spectrum secured through this acquisition.

 

The Company is in the process of setting up a world class broadband network using state-of-the-art technologies and finalizing the technical and commercial arrangements with the leading global technology companies, service providers, infrastructure providers, application developers, device manufacturers and few others to help usher the broadband revolution into India. The Company perceives the broadband opportunity as a new frontier of knowledge economy in which it can take a leadership position and provide India with an opportunity to be in the forefront among the countries providing world class broadband network and services. The Company aims to be a

comprehensive, value added digital services player, providing rich, affordable multimedia enabled digital services and experiences to crores of their citizens across entertainment, education, healthcare, agriculture, urban-rural market linkages, government-citizen interfaces, thereby increasing productivity and employment potential not only in the formal, but also informal sector of the economy which provides livelihood to more than 90% of the labour force. This makes the Company’s strategy closely aligned to India’s national goals.

 

 

AMALGAMATION (AS ON 31.03.2011)

 

During the year the Hon'ble High Court of Punjab and Haryana and Hon'ble High Court of Delhi sanctioned the Scheme of Amalgamation ("Scheme") pursuant to which Infotel Digicomm Private Limited (IDPL) and Infotel Holdings Private Limited (IHPL) were amalgamated with the Company. The Scheme became effective on 16th February 2011 with the appointed date of the Scheme being 1st April 2010. In terms of the Scheme, the Company issued and allotted 25,25,10,000 Equity Shares of Rs.10/- each to the existing Equity Share holders of IHPL and 12,50,00,000 Preference Shares of Rs.10/- each to the Preference Shareholders of IDPL.

 

Further in terms of the said Scheme, the Authorised Share Capital of the Company increased to Rs. 61549.500 Millions.

 

 

FIXED ASSETS

 

·         Leasehold Improvement

·         Plant and Machinery

·         Office Equipment

·         Furniture and Fixture

·         ISP License Fee

 

WEBSITE DETAILS

 

NEWS

 

AMBANIS CUT RS 12000.000-MILLIONS TELECOM DEAL

 

Mukesh’s Reliance Jio to use optical fibre network of Anil’s Rcom

 

New Delhi, April 2:  

Nearly eight years after the Ambani brothers parted ways, Mukesh and Anil are doing business again. Two of their telecom companies have signed a Rs 1,200-crore infrastructure-sharing agreement.

Mukesh Ambani-controlled Reliance Jio Infocomm has signed a Rs 12000.000 Millions deal to use the optical fibre network of Anil Ambani-backed Reliance Communications.

Reliance Jio will use RCom’s 1,20,000-km-long, nationwide optical fibre network to provide 4G services.

The Rs 12000.000 Millions deal is for the entire life of the optical fibre network. RCom will get reciprocal access to the optical fibre infrastructure that Reliance Jio may build in the future. The companies would also jointly upgrade the network to provide next generation services.

The agreement is the first in a series of deals between the companies. The next deal is likely to be for sharing RCom’s tower infrastructure and under-sea cable network.

In 2005, the Ambani brothers had split up, with Mukesh getting Reliance Industries and Anil taking control of RCom, power and infrastructure. The brothers had signed a non-compete agreement, which was amended in 2010.

That very year Reliance Jio, formerly Infotel Broadband, won spectrum to provide nationwide 4G services, marking Mukesh Ambani’s re-entry into the telecom sector.

The market gave the deal a thumbs-up, with Reliance Industries gaining over 2 per cent to close at Rs 794 on the National Stock Exchange, while RCom ended 11 per cent higher at Rs 63.45.

 

 

 


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 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 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. 54.44

UK Pound

1

Rs. 83.77

Euro

1

Rs. 71.33

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

--

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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.