MIRA INFORM REPORT

 

 

Report Date :

28.12.2013

 

IDENTIFICATION DETAILS

 

Name :

ZONASHA ESTATES AND PROJECTS

 

 

Registered Office :

No. 1075, 2nd Floor, 12th Main, 8th Cross, Indiranagar, Bangalore – 560038, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Year of Establishment :

2010

 

 

Capital Investment :

Rs. 1000.000 Millions

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Real Estate Developer

 

 

No. of Employees :

20 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 4000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established partnership concern having satisfactory track record.

 

However, trade relations are fair. Business is active. Payment terms are reported as usually correct.

 

The concern can be considered 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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

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.

 

 

LOCATIONS

 

Registered/ Corporate Office :

No. 1075, 2nd Floor, 12th Main, 8th Cross, Indiranagar, Bangalore – 560038, Karnataka, India

Tel. No.:

91-80-49039999

Mobile No.:

91-9945539863 (Mr. R. Nagaraj)

Fax No.:

91-80-49039977

E-Mail :

sales@zonasha.com

nagaraj@zonasha.com

projects@zonasha.com

Website :

http://www.zonasha.com

 

 

Marketing Office :

·         Zonasha Vista, Harlur Road, Bangalore, Karnataka, India

 

Zonasha Paradise, Near Indiranagar, Bangalore – 560038, Karnataka, India

Area :

4000 Sq. ft

Location :

Rented

 

 

PARTNERS

 

Name :

Mr. R. Nagaraj

Designation :

Partner

Date of Birth/Age :

55 Years

Qualification :

C.A.

Experience :

30 Years

 

 

Name :

Mrs. H.G. Sheela

Designation :

Partner

Qualification :

Graduate

 

 

BUSINESS DETAILS

 

Line of Business :

Real Estate Developer

 

 

Terms :

 

Selling :

As per Contract

 

 

Purchasing :

30 Days

 

 

GENERAL INFORMATION

 

Suppliers :

·         Thulasia Smelters

Triveni Enterprises

Bhulwalka Steels Limited

 

 

No. of Employees :

20 (Approximately)

 

 

Bankers :

·         Axis Bank Limited

Indiranagar, Bangalore – 560038, Karnataka, India

 

·         Karnataka Bank

Indiranagar, Bangalore – 560038, Karnataka, India

 

 

Facilities :

About Rs. 250.000 Millions [From Axis Bank Limited]

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Narasimhan and Company

Chartered Accountants 

Address :

Bangalore, Karnataka, India

 

 

Group Company :

Fern Builders and Developers

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Capital Investment :

 

Owned :

Rs. 1000.000 Millions

Borrowed :

--

Total :

Rs. 1000.000 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

Particulars

 

 

31.03.2013

31.03.2012

Sales Turnover (Approximately)

 

200.000

100.000

 

 

 

 

 

Expected Sales (2013-2014) : Rs. 300.000 Millions

 

Average value of inventories at any given time : Rs. About Rs. 50.000 Millions

 

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last two years

Yes

12]

Profitability for last two years

No

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

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

 

 

PRESS RELEASE:

 

HOME BUYERS IN BANGALORE REMAIN POSITIVE

 

NOV 8, 2013

 

Bangalore

 

Home buyers across the nation expect property prices to fall over the next six months, as per the Housing Sentiment Index (HSI) of Magicbricks.com and Indian Institute of Management – Bangalore (IIMB). Home buyers in Bangalore, at the other end, still expect prices to increase marginally.

 

Home buyers in other 7 major cities such as Delhi, Noida, Gurgaon, Mumbai, Pune, Hyderabad and Chennai expect property prices to fall over the next six months.

 

Bangalore is the only city where all buyers, irrespective of whether they are looking for apartments, villas or plots exhibit positive sentiment.

 

The index is based on an online survey of prospective home buyers which has been developed to specifically capture buyer sentiment on house prices, the degree to which he/she thinks house prices will move, micro market preferences within each city and basic demographic information including buyer preferences for type of property and financing methods.

 

As per the Index, home buyers in North and North East Bangalore are most positive followed by South Bangalore. “In North Bangalore, the infrastructure projects are underway. Recently the Karnataka Government has approved the peripheral ring road. A 10,000-acre Knowledge Park has been approved by the central government. This indicates the potential of the zone and whether property values will increase,” says R Nagaraj Reddy, chairman and managing director, Zonasha Estates & Projects and president, Confederation of Real Estate Developers Associations of India (CREDAI), Karnataka.

 

Reddy believes that in North Bangalore, Yelahanka and Hennur Road are amongst the locations which hold good potential. A 1,000 sq ft apartment in Yelahanka is generally available in the range of Rs 4.000-4.500 Millions. At the other end, the same-size apartment in Hennur Road is available in the range of Rs 4.200-4.600 Millions.

 

These areas are likely to come up well in the coming 3 to 5 years. Thus, home buyers have to wait for a few years till these localities become fully functional and complete in terms of physical and social infrastructure.

 

From investment point of view as well, one has to keep a mid-term horizon to achieve a decent rate of appreciation. “North Bangalore is the next growth area. Hence, the potential for appreciation would be higher,” says Ravindra Pai, managing director, Century Real Estate Holdings Private Limited.

 

But do positive sentiments indicate that this is the right time to buy as the prices may go up in the future? According to Reddy, “Even though the cost of construction has increased by 20-30 per cent, real estate developers have not increased prices and this is the right time to purchase property in Bangalore.”

 

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. 62.06

UK Pound

1

Rs. 102.03

Euro

1

Rs. 85.27

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

47

 

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.