MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

KOTAK MAHINDRA INVESTMENTS LIMITED

 

 

Registered Office :

36-38A, 3rd Floor, Nariman Bhavan, 227 Nariman Point, Mumbai – 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

05.07.1988

 

 

Com. Reg. No.:

11-047986

 

 

Capital Investment / Paid-up Capital :

Rs.30.503 Millions

 

 

CIN No.:

[Company Identification No.]

U65900MH1988PLC047986

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in holding long term strategic investments, providing finance against securities, mutual fund unit and such other activities. 

 

 

No. of Employees :

Information declined by management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 12000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a wholly owned subsidiary of Kotak Mahindra Bank Limited.

 

It is a well-established and reputed company having a fine track record.

 

Financial position of the company appears to be sound. Fundamentals are strong and healthy.

 

The rating takes into consideration strong parentage support, well experience promoters and knowledgeable people.

 

Trade relations are fair. Payments are reported to be regular and as per commitments.

 

 The company can be considered good 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.

 

INDIAN ECONOMIC OVERVIEW

 

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

 

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

 

India has been ranked 83rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

 

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

 

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

 

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

 

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

 

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

 

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery  worth Rs 6.7 mn have been recovered from the residence of Acharya.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long term debt programme: AA

Rating Explanation

High degree of safety and very low credit risk.

Date

June 2013

 

Rating Agency Name

ICRA

Rating

Short term debt programme: A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

June 2013

 

 

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

 

MANAGEMENT NON – COOPERATIVE (91-22-66056825)

 

LOCATIONS

 

Registered Office :

36-38A, 3rd Floor, Nariman Bhavan, 227 Nariman Point, Mumbai – 400021, Maharashtra

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

Bina.chandarana@kotak.com

 

 

DIRECTORS

 

Name :

Mr. Uday Kotak

Designation :

Chairman)

 

 

Name :

Mr. Dipak Gupta

Designation :

Director

 

 

Name :

Mr. Arvind Kathpalia

Designation :

Director

 

 

Name :

Mr. Jaideep Hansraj

Designation :

Director

 

 

Name :

Mr. Shanti Ekambaram

Designation :

Director

 

 

Name :

Mr. Narayan S A

Designation :

Director

 

 

Name :

Mr. Jaimin Bhatt

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Rupal D Jhaveri

Designation :

Company Secretary

 

 

Name :

Mr. Sandip Todkar

Designation :

Manager

 

 

Name :

Mr. N R Subramanian

Designation :

Senior Vice President

(Finance and Operations)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

NOT AVAILABLE

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in holding long term strategic investments, providing finance against securities, mutual fund unit and such other activities. 

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management 

 

 

Bankers :

Not Divulged

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

1,180 (P Y 1,100) Redeemable Non-Convertible Debentures fully paid, privately placed

730.000

1100.000

Unamortised Discount on debenture

(5.788)

(17.763)

534 (P.Y 600) Deep Discount Non-Convertible Debentures

534.000

600.000

Unamortised Discount on debenture

(59.088)

(104.131)

Short-term borrowings

 

 

Redeemable non-convertible

0.000

120.000

Total

1199.124

1698.106

Note:

 

These debentures are redeemable at par. The non-Convertible debentures, Deep Discount Debentures and Index/Gold Linked debentures are secured by way of mortgage on company owned property of Rs.1.026 Millions and or/or a charge on specified receivables/current assets and Investments of the company, in favour of the debenture Trustees.

 

A) The details of debentures are as under:

 

Description

Rate

Rs. In Millions

Rate

Rs. In Millions (Previous year )

Redemption Date

 

 

 

 

 

 

500 Debentures of Rs. 10,00,000 each

Linked to

Mumbai standard gold spot price

50.000

 

100.000

10.11.2015

100 Debentures of Rs. 10,00,000 each

10.20%

100.000

10.20%

150.000

06.03.2015

150 Debentures of Rs. 10,00,000 each

10.15%

150.000

10.15%

150.000

09.02.2015

150 Debentures of Rs. 10,00,000 each

10.15%

150.000

10.15%

100.000

09.02.2015

100 Debentures of Rs. 10,00,000 each

10.25%

100.000

10.25%

120.000

27.01.2015

120 Debentures of Rs. 10,00,000 each

10.50%

120.000

10.50%

 

23.10.2014

60 Debentures of Rs. 10,00,000 each

9.75%

60.000

 

 

07.04.2014

200 Debentures of Rs. 10,00,000 each

Linked to

Mumbai standard gold spot price

 

Linked to

Mumbai standard gold spot price

200.000

29.11.2013

50 Debentures of Rs. 10,00,000 each

 

 

 

50.000

14.08.2013

80 Debentures of Rs. 10,00,000 each

 

 

 

80.000

01.08.2013

150 Debentures of Rs. 10,00,000 each

 

 

 

150.000

05.04.2013

Total

 

 

730.000

1100.000

 

 

The details of Deep Discount Debentures are as under:

 

Description

Rate

Rs. In Millions

Rate

Rs. In Millions (Previous year )

Redemption Date

104 Debentures of Rs. 10,00,000 each

9.90%

104.000

 

 

14.07.2014

50 Debentures of Rs. 10,00,000 each

11.02%

300.000

11.02%

300.000

10.07.2014

80 Debentures of Rs. 10,00,000 each

11.01%

130.000

11.01%

130.000

10.07.2014

150 Debentures of Rs. 10,00,000 each

 

 

10.42%

170.000

16.07.2014

 

 

 

 

 

 

Total

 

534.000

 

600.000

 

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

V C shah and Company

Chartered Accountants

Address :

Rajgir Chambers, 3rd Floor, 12-14, Shahid Bhagat Singh Road, Opposite – Old Custom House, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-43440123

Fax No.:

91-22-22662667

E-Mail :

vcshahco@vsnl.com

 

 

Holding Company:

·         Kotak Mahindra Bank Limited (KMBL) (Holds 100% of the equity share capital)

 

Uday S. Kotak along with relatives and entities controlled by him holds 44.96%(P.Y. 45.32%) of the equity share capital of Kotak Mahindra Bank Limited as on 31st March, 2013.

 

 

Fellow Subsidiaries:

·         Kotak Securities Limited

·         Kotak Mahindra Prime Limited

·         Kotak Mahindra Asset Management Company Limited

·         Kotak Investment Advisors Limited

 

 

Associate Company:

·         Matrix Business Services India Private Limited. Phoenix ARC Private Limited

 

 

Mutual Fund managed by Fellow Subsidiary:

·         Kotak Mahindra Mutual Fund managed by Kotak Mahindra Asset Management Company Limited

 

 

Venture Capital / Private Trust

Funds managed by the

Fellow Subsidiary:

·         Kotak India Realty Fund Ltd.

·         Kotak India Real Estate Fund - I

·         India Growth Fund

·         Kotak Alternate Opportunities (India) Fund

·         Kotak India Venture Fund

·         Kotak India Growth Fund –II

 

 

CAPITAL STRUCTURE

 

AFTER 30.05.2013

 

Authorised Capital : Rs. 700.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 39.601 Millions

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

58000000

Equity Shares

Rs.10/- each

Rs. 580.000 Millions

1200

Non-cumulative redeemable preference shares

Rs.100000/- each

Rs. 120.000 Millions

 

 

 

 

 

Total

 

Rs. 700.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3050280

Equity Shares

Rs.10/- each

Rs. 30.503 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

30.503

30.503

30.503

(b) Reserves & Surplus

3007.897

2665.334

2512.821

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

3038.400

2695.837

2543.324

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1199.124

1578.106

172.314

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

49.939

100.527

39.766

(d) long-term provisions

8.308

6.581

5.671

Total Non-current Liabilities (3)

1257.371

1685.214

217.751

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

4243.362

3301.836

7003.920

(b) Trade payables

14.920

4.112

32.964

(c) Other current liabilities

1022.679

464.904

645.820

(d) Short-term provisions

87.213

76.888

21.026

Total Current Liabilities (4)

5368.174

3847.740

7703.730

 

 

 

 

TOTAL

9663.945

8228.791

10464.805

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

8.618

3.531

2.525

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

375.937

766.486

554.321

(c) Deferred tax assets (net)

68.948

93.337

153.760

(d)  Long-term Loan and Advances

55.820

50.856

139.008

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

509.323

914.210

849.614

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

0.000

0.000

0.000

(d) Cash and cash equivalents

866.522

123.067

1467.548

(e) Short-term loans and advances

8288.100

7191.514

8147.643

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

9154.622

7314.581

9615.191

 

 

 

 

TOTAL

9663.945

8228.791

10464.805

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

1029.787

1111.634

1166.115

 

 

Other Income

146.782

72.692

86.724

 

 

TOTAL                                     (A)

1176.569

1184.326

1252.839

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefits expenses

51.999

60.439

60.024

 

 

Other Expenses

125.889

217.411

264.468

 

 

TOTAL                                     (B)

177.888

277.850

324.492

 

 

 

 

 

Less

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

998.681

906.476

928.347

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

537.285

632.801

595.233

 

 

 

 

 

 

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

461.396

273.675

333.114

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.576

1.068

1.067

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

459.820

272.607

332.047

 

 

 

 

 

Less

TAX                                                                  (H)

124.146

120.094

92.060

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

335.674

152.513

239.987

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

2307.044

2038.570

1916.657

 

 

 

 

 

 

Earnings Per Share (Rs.)

110.05

50.00

78.68

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
28.53

12.88

19.16

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
44.65

24.52

28.47

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.99

3.70

3.40

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15

0.10

0.13

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.79

1.81

2.82

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.71

1.90

1.25

 

 

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

No

10]

Designation of contact person

No

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

Yes

23]

Banking Details

No

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

Yes

 

LITIGATION DETAILS

 

BENCH:-BOMBAY

 

Presentation Date:-

25/09/2013

 

Lodging No.:-

ITXAL/1580/2013

Filing Date:-

25/09/2013

 

 

 

 

Petitioner:-

THE COMMISSIONER OF INCOME TAX-3, MUMBAI

Respondent:-

KOTAK MAHINDRA INVESTMENT LTD.

 

 

 

Petn.Adv.:-

Vipul Bajpayee

Resp.Adv.:-

Atul Karsandas Jasani

 

 

 

District:-

MUMBAI

 

 

 

 

Bench:-

DIVISION

 

 

 

 

Status:-

Pre-Admission

Category:-

TAX APPEALS

 

 

 

Last Date:-

03/10/2013

Stage:-

 

 

 

 

Last Coram:-

REGISTRAR(OS)/PROTHONOTARY & SR. MASTER

 

 

 

 

Act :-

Income Tax Act, 1961

 

OPERATIONS

 

The Company is engaged in holding investments, providing finance against securities. The Current year witnessed a volatile capital market environment. Strong credit and collateral value monitoring mechanism put in place by The Company ensured stability growth in business. The Company’s strategy has been of continuous product innovation coupled with tight control on credit quality and effective risk management. The Company is well positioned to explore all opportunities that may be offered in the current economic environment.

 

CORPORATE INFORMATION

 

The Company is engaged in holding long term strategic investments, providing finance against securities and mutual fund units, providing overdraft against shares and such other activities. The company has also purchased stressed portfolios from other financial institutions under the RBI guidelines. The company is a 100% subsidiary of Kotak Mahindra Bank Limited.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Short-term borrowings

 

 

Commercial Paper

4387.500

3250.000

Unamortised Discount

(144.138)

(68.164)

Total

4243.362

3181.836

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10301939

18/07/2011

44,500,000.00

KOTAK MAHINDRA BANK LIMITED

36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B18713339

2

10263949

10/01/2011

20,000,000.00

CITIBANK N.A

DLF CENTRE, NEW DELHI, DELHI - 110001, INDIA

B03993813

3

10193177

21/12/2009

25,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

A75883165

4

10117696

08/02/2010 *

5,852,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BA
LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

A79343455

5

10089199

25/02/2008

25,000,000,000.00

AXIS BANK LIMITED

TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA

A32903551

6

80024024

18/07/2005

40,290,000.00

INDUSIND BANK LIMITED

MAMATA HOUSE, 1ST FLOOR, 231,, SV ROAD, BANDRA WEST, MUMBAI, MAHARASHTRA - 400050, INDIA

-

7

90236371

02/05/2005 *

81,142,500.00

INDUSIND BANK LIMITED

2401; GEN THIMMAYYA RAOAD, S. V. ROAD, MUMBAI, MA
HARASHTRA - 400050, INDIA

-

8

90226500

23/08/2004

81,142,500.00

INDUSIND BANK LIMITED

MAMTA HOUSE; 1 - ST FLOOR; 231; SV RAOD, BANDRA,
MUMBAI, MAHARASHTRA, INDIA

-

9

90226491

01/06/2004 *

15,500,000.00

INDUSIND BANK LIMITED

2401; GEN THIMAYA ROAD, CANTONMENT ROAD, PUNE, MAHARASHTRA, INDIA

-

10

90226480

20/07/2004 *

13,000,000.00

UTI BANK LIMITED

13; FLOOR; MAKER TOWER, CUFFE PARADE; COLABA, MUMBAI, MAHARASHTRA, INDIA

-

 

* Date of charge modification

 

CONTINGENT LIABILITIES: (As on 31.03.2013)

 

·         Uncalled liability on capital commitment in respect of units of India Growth Fund – Class A Units Rs. NIL

·         Uncalled liability on capital commitment in respect of units of Kotak India Venture Fund - Class A units Rs. NIL

·         Claims in respect of Leasehold premises : Rs.0.245 Million.

·         Contingent Liability in respect of open positions of Equity Index Futures contract outstanding as on balance sheet date Rs. 123.847 Millions.

·         Contingent Liability in respect of demands from Income Tax authorities Rs. NIL

 

FIXED ASSETS

 

Tangible Assets

 

·         Premises

·         Office Equipment

·         Furniture and Fixtures

·         Computers

·         Vehicle


 

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 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.62.24

UK Pound

1

Rs.101.81

Euro

1

Rs.84.88

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

68

 

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.