MIRA INFORM REPORT

 

 

Report Date :

18.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MUSIC BROADCAST PRIVATE LIMITED

 

 

Registered Office :

5th Floor, RNA Corporate Park, Off Western Express Highway Kalangar, Bandra (East), Mumbai-400051, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.11.1999

 

 

Com. Reg. No.:

11-137729

 

 

Capital Investment / Paid-up Capital :

Rs. 389.096 Millions

 

 

CIN No.:

[Company Identification No.]

U64200MH1999PTC137729

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Provides FM Radio Channel Entertainment Services in India

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of IVF Holdings Private Limited. It is an established company having a moderate track record. The latest financials of the company are not made available in the government.

 

As per previous year’s record, there appear huge accumulated losses which exceed the net worth.

 

However, trade relations are reported as fair. Business is active. Payment terms are reported as 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 DECLINED BY

 

Name :

Mr. Jimmy

Designation :

Accountant

Contact No.:

91-22-66969100

Date :

17.01.2013

 

 

LOCATIONS

 

Registered Office :

5th Floor, RNA Corporate Park, Off Western Express Highway Kalangar, Bandra (East), Mumbai-400051, Maharashtra, India

Tel. No.:

91-22-66969100

Fax No.:

91-22-26429113

E-Mail :

investorservices@myradiocity.com

 

 

DIRECTORS

 

AS ON 28.09.2012

 

Name :

Mr. George Thomas

Designation :

Director

Address :

483, AECS Layout, Kundalahalli P.O. Bangalore-560037, Karnataka, India

Date of Birth/Age :

22.06.1960

Date of Appointment :

17.01.2005

DIN No.:

00068470

 

 

Name :

Mr. Sunil Vasudevan Theckath

Designation :

Director

Address :

96, 2nd Cross Road, Block 5, Banashankari, 3rd Stage, 3rd Phase, Bangalore-560085, Karnataka, India

Date of Birth/Age :

03.03.1966

Date of Appointment :

24.08.2007

DIN No.:

00294130

 

 

Name :

Mr. Vishal Gangadhar Nevatia

Designation :

Director

Address :

202, Adibaba, 16th Road, Santacruz (West), Mumbai-400054, Maharashtra, India

Date of Birth/Age :

05.08.1969

Date of Appointment :

17.01.2005

DIN No.:

01307857

 

 

Name :

Mr. Vikram R K Nirula

Designation :

Director

Address :

704, Gypsy Rose Shatri Nagar, Andheri (West), Mumbai-400053, Maharashtra, India

Date of Birth/Age :

28.08.1972

Date of Appointment :

02.03.2005

DIN No.:

01655115

 

 

KEY EXECUTIVES

 

Name :

Mr. Chirag Bharat Bagadia

Designation :

Secretary

Address :

A-404, Saraswati Apartment, C S Road No.4, Dahisar (East), Mumbai-400068, Maharashtra, India

Date of Birth/Age :

30.10.1982

Date of Appointment :

30.11.2010

PAN No.:

ALTPB6740J

 

 

Name :

Mr. Jimmy

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 28.09.2012

 

Names of Equity Shareholders

No. of Shares

India Value Fund Trustee Company Private Limited, India

8643054

IVF Holdings Private Limited, India

21258466

George Thomas jointly with Sunil Theckath

3008066

Crystal Sound and Music Private Limited, India

9003181

TOTAL

41912767

 

 

Names of Preference Shareholders

No. of Shares

India Value Fund Trustee Company Private Limited, India

4900

TOTAL

4900

 

 

AS ON 28.09.2012

 

Equity Shares Break Up

Percentage of Holding

Bodies corporate

92.82

Other top fifty shareholders

7.18

TOTAL

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Provides FM Radio Channel Entertainment Services in India

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Axis Bank Limited, Universal Insurance Building, Ground Floor, Sir P M Road, Fort, Mumbai-400001, Maharashtra, India

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Rupee term loans secured

 

 

Rupee term loans banks secured

326.023

451.023

Interest accrued due secured loans

 

 

Interest accrued due other debt secured

3.669

4.405

 

 

 

TOTAL

329.692

455.428

 

Notes:

 

(A) [Secured by way of first charge of Hypothecation of all moveable and immoveable properties, (both present and future), Current assets (both present and future) and the Brand of the Company] [Due within one year Rs. 125.000 Millions) (March 31, 2010: Rs. 125.000 Millions)]

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S R Batliboi and Associates

Chartered Accountants

Address :

6th Floor, Express Towers, Nariman Point, Mumbai-400021, Maharashtra, India

PAN No.:

AABFS3421N

 

 

Holding Company :

·         IVF Holdings Private Limited

CIN No.:- U65993MH2005PTC155967

 

 

Ultimate Holding Company :

·         India Value Fund

 

 

 

Fellow Subsidiaries :

·         Meru Cab Company Private Limited Formerly known as V-Link Taxis Private Limited

 

 

Entities which exercise significant influence on the Company :

·         India Value Fund Trustee Company Private Limited

·         Crystal Sound and Music Private Limited

 


 

CAPITAL STRUCTURE

 

AS ON 30.09.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

42000000

Equity Shares

Rs.10/- each

Rs. 420.000 Millions

50000

Preference Shares

Rs.10/- each

Rs. 0.500 Million

 

TOTAL

 

Rs. 420.500 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

41912767

Equity Shares

Rs.10/- each

Rs. 419.128 Millions

4900

Preference Shares

Rs.10/- each

Rs. 0.049 Million

 

TOTAL

 

Rs. 419.177 Millions

 

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

42000000

Equity Shares

Rs.10/- each

Rs. 420.000 Millions

50000

Preference Shares

Rs.10/- each

Rs. 0.500 Million

 

TOTAL

 

Rs. 420.500 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

38904700

Equity Shares

Rs.10/- each

Rs. 389.047 Millions

4900

Preference Shares

Rs.10/- each

Rs. 0.049 Million

 

TOTAL

 

Rs. 389.096 Millions

 

Note:

 

41,912,767 (March 31, 2010: 41,912,767) equity shares of Rs.10/- each, fully paid-up. Less: Amount recoverable from ESOP Trust Rs. 30,081


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

389.096

389.096

389.096

2] Stock Option Outstanding Account

13.076

8.046

7.655

3] Share Application Money

0.000

0.000

0.000

4] Reserves & Surplus

1766.890

1766.890

1766.890

5] (Accumulated Losses)

(2494.079)

(2573.850)

(2233.507)

NETWORTH

(325.017)

(409.818)

(69.866)

LOAN FUNDS

 

 

 

1] Secured Loans

329.692

455.428

582.138

2] Unsecured Loans

1577.125

1502.400

1407.000

TOTAL BORROWING

1906.817

1957.828

1989.138

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1581.800

1548.010

1919.272

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

784.114

1022.571

1278.751

Capital work-in-progress

42.924

39.927

29.864

 

 

 

 

INVESTMENT

29.043

7.647

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

541.975

379.957

303.258

 

Cash & Bank Balances

248.193

257.537

384.317

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

320.911

240.399

240.628

Total Current Assets

1111.079

877.893

928.203

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

29.203

44.848

285.777

 

Other Current Liabilities

337.166

339.419

15.465

 

Provisions

18.991

15.761

16.304

Total Current Liabilities

385.360

400.028

317.546

Net Current Assets

725.719

477.865

610.657

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1581.800

1548.010

1919.272

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Revenue from Advertisement

1050.065

807.503

872.138

 

 

Other Income

44.558

37.577

37.059

 

 

TOTAL                                    

1094.623

845.080

909.197

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Administrative and Other Expenses

866.531

847.237

968.304

 

 

TOTAL                                    

866.531

847.237

968.304

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

228.092

(2.157)

(59.107)

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

75.946

98.473

139.752

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

152.146

(100.630)

(198.859)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

245.953

241.816

244.841

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX

(93.807)

(342.446)

(443.700)

 

 

 

 

 

Less

TAX                                                                 

0.000

0.000

3.981

 

 

 

 

 

Less

Exceptional Items

(173.297)

0.000

0.000

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX

79.490

(342.446)

(447.681)

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2573.850)

(2233.507)

(1786.616)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

(0.281)

(2.103)

0.000

 

BALANCE CARRIED TO THE B/S

(2494.079)

(2573.850)

(2233.507)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Content Sale

NA

0.190

5.888

 

 

Subscription Revenue

NA

0.197

0.000

 

TOTAL EARNINGS

NA

0.387

5.888

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

0.000

0.797

 

TOTAL IMPORTS

NA

0.000

0.797

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(2.04)

(8.80)

(11.51)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

7.26

(40.52)

(49.24)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(8.93)

(42.41)

(50.87)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(4.95)

(18.02)

(20.10)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.29

0.84

6.35

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

(7.05)

(5.75)

(33.02)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.88

2.19

2.92

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars

 

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Creditors due small micro enterprises

0.000

0.000

0.000

Creditors due others

29.203

44.848

1.899

For Services

--

--

45.908

For Expenses

--

--

237.970

TOTAL

29.203

44.848

285.777

 

UNSECURED LOANS DETAILS:

(Rs. In Millions)

Unsecured Loan

 

31.03.2011

31.03.2010

Rupee term loans unsecured

 

 

Rupee term loans banks unsecured

209.725

110.000

Deposits related parties unsecured

50.000

50.000

Other debt unsecured

1317.400

1342.400

TOTAL

1577.125

1502.400

 

Notes:

 

A)      [Due within one year Rs. 209.725 Millions (March 31, 2010: Rs 110.000 Millions)](This loan is secured by the corporate guarantee given by a company)

 

B)      Long Term Loan from holding company-[Due within one year - Rs Nil (March 31, 2010: Rs Nil)]

 

C)      Includes

 

1)       Long Term Loan from India Value Fund Trustee Company Private Limited- India Value Fund Scheme B [Due within one year - Rs Nil (March 31, 2010: Rs Nil)]

 

2)       Long Term Loan from Crystal Sound and Music Private Limited [Due within one year – Rs Nil (March 31, 2010: Rs Nil)]

 

3)       Long Term Loan from India Value Fund Advisors Private Limited [Due within one year - Rs Nil (March 31, 2010: Rs Nil)]

 

4)       Long Term Loan from IVF Advisors Private Limited [Due within one year - Rs Nil (March 31, 2010: Rs Nil)]

 

 

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)

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

Yes

29]

Last accounts filed at ROC

No

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

 

NOTE

 

The Registered office of the company has been shifted from IL an FS Financial Centre, 5th Floor, Plot No. C-22, G Block, North Aquadrant BKC, Bandra (East), Mumbai-400051, Maharashtra, India to present address w.e.f. 28.05.2007

 

BUSINESS OPERATIONS AND OUTLOOK

 

Radio City put up a sterling performance during the year growing by almost 30% in revenues as compared to FY 2009-10 and registering a 2% (volume share) and 3% (value share) gain in 2010-11. Programming and marketing initiatives have yielded in significant growth this year. Radio City listenership grew considerably in IRS making it the only radio station to grow, as compared to the category de-growth of 4% Radio city posted a growth of 3%. In RAM, Radio City posted an excellent growth of 19% in Mumbai and 20% in Bengaluru moving to no 1 and no 2 positions respectively. Some of the Marketing activities that were acknowledged by the listeners were Tick Kiya, Dekho Visarjan Aasman se, City Ke Kaminey, I love you City, City Chi Paati amongst others. Radio City expanded a marquee property - Musical-E-Azam in its 4th season, to a pan Indian property with 29 artists performing live and unplugged across 7 cities. Radio City also embarked on a series of socially relevant programs across various markets. Radio City was chosen as the most preferred brand among advertisers and media planners in the Pitch Brand Ometer by the experts in the industry for its outstanding service quality and customer management. Radio City won 7 Promax Radio Awards covering different categories of programming and creative advertising. The highlight of the year was Radio city being featured as one of the best companies to work for in the Media industry as per 'India’s Best Companies to Work For' - 2011 Study, conducted by The Great Place to Work® Institute, India, in partnership with The Economic Times. Radio City’s PlanetRadiocity.com hit a number of milestones in FY 2010-11 with its average page views reaching 15 million page views a whopping 150% growth over FY 2009-10. In a short duration the Web Radio has reached a listenership of 1.4 million listeners making it the tenth largest across all networks in the country.

 

NATURE OF OPERATIONS

 

Subject was incorporated in India on November 4 1999. The Company is engaged in the business of operating Private FM Radio Stations through the brand ‘Radio City’. The Company started its operations in India in July 2001 in Bangalore and currently owns licenses issued by the Ministry of Information and Broadcasting ‘MIB’ to operate radio stations in 20 cities across India.

 

The Company’s accumulated losses aggregate Rs. 2494.100 Millions as at March 31 2011 after adjusting profit of Rs. 79.500 Millions incurred during the year ended March 31 2011 whereas the Share Capital and Reserve and Surplus aggregate to Rs. 2169.100 Millions at that date. The Company’s operations are primarily funded from borrowings from banks and other companies related to the parent company. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern.

 

The Company has significantly increased its revenue base in the current year and with the reduction in the content royalty cost management is confident that the Company would be able to generate cash profits in the coming years. The borrowings from parent company and other companies related to the parent company are interest-free and their tenure has been extended whenever required. Further the parent company has provided assurances that it intends to provide adequate financial support to the Company to enable it to continue its operations for the year ending March 31 2012 if necessary. This has been demonstrated by the parent company in the current and prior years where financial and non financial support has been extended to the Company whenever required to enable the Company to meet its obligations and as when they fall due for payment. Accordingly the accompanying financial statements have been prepared under the going concern assumption.

 

During the fixed license fee regime the Company had obtained the licenses from the Ministry of Information and Broadcasting MIB for operating FM Radio Service for some stations. Due to delays in obtaining the requisite approvals and reasons of non-viability of projects the Company surrendered the Licenses of 2 stations namely Nagpur and Patna in the prior years. The deposit of Rs. 5.000 Millions and bank guarantee of Rs 121.500 Millions placed with Government of India in relation to these licenses had not been released due to dispute in relation to such release by the Government. The Company had filed a suit for recovery of the amount from MIB. During the year Company won the litigation in its favour. Accordingly MIB was directed to refund the bank guarantee to the Company. The Company had then made an application to MIB for refund of both the bank guarantee and deposit. However the MIB appealed against the order before the Supreme Court SC the SC stayed the earlier order with the Company having the facility to replace the BG. Both the Bank Guarantees have been replaced with the Bank Guarantees having lower margins. Currently leave has been granted by the SC the pleadings in the matter are being completed and they are awaiting the registry of the SC to fix a date for the hearing of the matter.

FIXED ASSETS

 

·         One Time Entry/ Migration Fees

·         Copy Rights

·         Music Portal

·         Towers, Antenna and Transmitters

·         Computers

·         Furniture and Fixtures

·         Studio Equipments

·         Office Equipments,

·         Air Conditioners

·         UPS and Gen Set

·         Vehicles

 

 

 

 


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.54.64

UK Pound

1

Rs.87.46

Euro

1

Rs.72.65

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

BSN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

TOTAL

 

32

 

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.