MIRA INFORM REPORT

 

 

Report Date :

24.07.2013

 

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE SECURITIES LIMITED

 

 

Formerly Known As :

R TRADE SECURITIES LIMITED

 

 

Registered Office :

11th Floor, R-Tech IT Park, Western Express Highway, Goregaon [East], Mumbai – 400063, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

17.06.2005

 

 

Com. Reg. No.:

11-154052

 

 

Capital Investment / Paid-up Capital :

Rs. 1500.000 Millions

 

 

CIN No.:

[Company Identification No.]

U65990MH2005PLC154052

 

 

PAN No.:

[Permanent Account No.]

AADCR0260P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Stock Broking and Related Services.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (58)

 

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 7349900

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having a fine track record.

 

The liquidity of the company is sound and healthy. Directors are reported to be well-experienced and knowledgeable businessmen.

 

Trade relations are decent. Business is active. Payment terms are 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Short term non fund based bank lines : A1+

Rating Explanation

Very strong degree of safety and low credit risk.

Date

February 8, 2012

 

 

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 [91-22-33201212]

 

 

LOCATIONS

 

Registered/ Corporate Office :

11th Floor, R-Tech IT Park, Western Express Highway, Goregaon [East], Mumbai – 400063, Maharashtra, India

Tel. No.:

91-22-33201212

Fax No.:

91-22-33201555

E-Mail :

shilpa.chhabra@rcap.co.in

Website :

http://www.rsec.co.in

 

 

DIRECTORS

 

AS ON 01.06.2012

 

Name :

Soumen Ghosh

Designation :

Director

Address :

Flat No. 203, Marvel Exotica, Mira Nagar Road, Koregaon, Pune – 411001, Maharashtra, India 

Date of Birth/Age :

08.06.1959

Qualification :

"B. S c (Hons) Mechanical Engineering University of London (UK) ACA, Institute of Chartered Accountants, England & Wales, Institute of Chartered Accountants, Australia"

Date of Appointment :

27.06.2008

DIN No.:

01262099

 

 

Name :

Chandra Prakash Jain

Designation :

Director

Address :

396-C, Sheikh Sarai, Phase I, New Delhi – 110017, India

Date of Birth/Age :

03.03.1946

Date of Appointment :

27.09.2010

DIN No.:

00011964

 

 

Name :

Mr. Vikrant Kishore Gugnani

Designation :

Whole-time director

Address :

1601/2, 16th Floor, Raheja Empress, Plot No. 392, V.S. Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

01.07.1970

Qualification :

B.Com, Chartered Accountant

Date of Appointment :

26.11.2009

DIN No.:

01814337

 

 

Name :

Manu Chadha

Designation :

Director

Address :

C 35, Malca Marg, Chankyapuri, New Delhi – 110021, India

Date of Birth/Age :

28.08.1955

Qualification :

B.Com, Chartered Accountant, Law Graduate

Date of Appointment :

08.09.2011

DIN No.:

00068577

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjay Tulsio Wadhwa

Designation :

Secretary

Address :

Plot H, Flat No. 802, 8th Floor, H Wing, Mhindra Gesco Building, GE Garden, LBS Marg, Kanjur Marg, Mumbai – 400078, Maharashtra, India

Date of Birth/Age :

10.10.1973

Date of Appointment :

01.10.2009

PAN No.:

AAFPW8459G

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 01.06.2012

 

Names of Equity Shareholders

 

No. of Shares

 

Reliance Capital Limited, India

 

24899930

Reliance Capital Limited jointly with V. R. Mohan

 

10

Reliance Capital Limited jointly with Yogesh Deshpande

 

10

Reliance Capital Limited jointly with Amit Bapna

 

10

Reliance Capital Limited jointly with Neeraj Dwivedi

 

10

Reliance Capital Limited jointly with Parul Jain

 

10

Reliance Ada Group Trustees Private Limited as Trustees of Reliance Securities Limited Employees Benefits Trust, India  

 

100000

Reliance Capital Limited jointly with Madan Chaturvedi

 

10

Reliance Capital Limited jointly with Chetan Raval

 

10

 

 

 

Total

 

25000000

 

 

Names of Preference Shareholder

 

No. of Shares

 

Reliance Capital Limited, India

 

125000000

 

 

 

Total

 

125000000

 

 

AS ON 01.06.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Stock Broking and Related Services.

 

 

Products/ Services :

ITC Code No.

Product Descriptions

99715210

Securities brokerage services

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Not Divulged

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, Tulsiani Chambers, 212, Free Press Journal Marg, Nariman Point, Mumbai, Maharashtra, India

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

AAAFC0662N

 

 

Holding company :

Reliance Capital Limited [L65910MH1986PLC165645]

 

 

Ultimate Holding Company

Reliance Innoventures Private Limited

 

 

Fellow Subsidiary company :

­      Reliance Capital Trustee Company Limited [U65910MH1995PLC220528]

­      Reliance Capital Asset Management Limited [U65910MH1995PLC220793]

­      Reliance General Insurance Company Limited [U66603MH2000PLC128300]

­      Reliance Money Express Limited [U74999MH2002PLC138032]

­      Reliance Commodities Limited [U51100MH2005PLC154611]

­      Reliance Financial Limited [U65990MH2005PLC155675]

­      Reliance Wealth Management Limited [U65999MH2009PLC189285]

­      Quant Commodities Private Limited [U67190TZ2009PTC016898]

­      Reliance Investment Banking Services Limited [U65100MH2008PLC182588]

 

 

Subsidiary company:

­      Reliance Composite Insurance Broking Limited [U65990MH1994PLC082324] w.e.f. October 18, 2011

­      Reliance Financial Limited Subsidiary up to December 28, 2010

­      Reliance Commodities Limited Subsidiary up to December 28, 2010

­      Reliance Investment Banking Services Limited Subsidiary up to December 28, 2010

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50,000,000

Equity Shares

Rs. 10/- each

Rs. 500.000 Millions

150,000,000

Preference Shares

Rs. 10/- each

Rs. 1500.000 Millions

 

Total

 

Rs. 2000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25,000,000

Equity Shares

Rs. 10/- each

Rs. 250.000 Millions

125,000,000

Preference Shares

Rs. 10/- each

Rs. 1250.000 Millions

 

Total

 

Rs. 1500.000 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

1500.000

1750.000

(b) Reserves & Surplus

 

337.476

277.482

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

1837.476

2027.482

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

3.882

4.169

Total Non-current Liabilities (3)

 

3.882

4.169

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

0.000

0.000

(b) Trade payables

 

13.216

11.983

(c) Other current liabilities

 

1412.927

2067.921

(d) Short-term provisions

 

0.862

1.856

Total Current Liabilities (4)

 

1427.005

2081.760

 

 

 

 

TOTAL

 

3268.363

4113.411

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

66.462

50.983

(ii) Intangible Assets

 

21.692

29.863

(iii) Capital work-in-progress

 

0.000

0.000

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

14.900

1.900

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

211.898

242.508

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

314.952

325.254

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

854.000

1159.980

(b) Inventories

 

0.000

0.000

(c) Trade receivables

 

367.638

454.098

(d) Cash and cash equivalents

 

899.839

1064.179

(e) Short-term loans and advances

 

828.219

1105.840

(f) Other current assets

 

3.715

4.060

Total Current Assets

 

2953.411

3788.157

 

 

 

 

TOTAL

 

3268.363

4113.411

 

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

1750.000

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

206.461

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

1956.461

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

3920.638

TOTAL BORROWING

 

 

3920.638

DEFERRED TAX LIABILITIES

 

 

11.005

 

 

 

 

TOTAL

 

 

5888.104

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

43.504

Capital work-in-progress

 

 

0.125

 

 

 

 

INVESTMENT

 

 

1171.900

DEFERRED TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

0.000

 

Sundry Debtors

 

 

446.041

 

Cash & Bank Balances

 

 

2721.963

 

Other Current Assets

 

 

8.793

 

Loans & Advances

 

 

5475.902

Total Current Assets

 

 

8652.699

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

 

3827.655

 

Other Current Liabilities

 

 

140.266

 

Provisions

 

 

12.203

Total Current Liabilities

 

 

3980.124

Net Current Assets

 

 

4672.575

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

5888.104

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

924.462

1136.523

1112.906

 

 

Other Income

278.176

401.656

750.110

 

 

TOTAL                                     (A)

1202.638

1538.179

1863.016

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit expense

482.807

397.980

895.886

 

 

Other expenses

617.418

936.422

475.235

 

 

TOTAL                                     (B)

1100.225

1334.402

1371.121

 

 

 

 

 

Less

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

102.413

203.777

491.895

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

112.203

413.378

 

 

 

 

 

 

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

102.413

91.574

78.517

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

27.311

21.667

12.190

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

75.102

69.907

66.327

 

 

 

 

 

Less

TAX                                                                  (H)

15.108

(1.114)

44.522

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

59.994

71.021

21.805

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

277.482

206.461

184.656

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Capital Redemption Reserve

250.000

0.000

0.000

 

BALANCE CARRIED TO THE B/S

87.476

277.482

206.461

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

0.194

0.000

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.41

4.18

6.15

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

4.99

4.62

1.17

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

8.12

6.15

5.96

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.31

1.70

0.76

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.03

0.03

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

2.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.07

1.82

2.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT : NOT AVAILABLE

 

 

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

--

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

CHARGES

 

ENTITY

 PERSON

COMPETENT AUTHORITY

 REGULATORY CHARGES

 REGULATORY ACTION(S) / DATE OF ORDER

 FURTHER DEVELOPMENTS

RELIANCE SECURITIES

 

EPFO 

Exempted and Unexempted establishments defaulted with EPFO including Provident Fund, Pension and EDLI Contribution, Administration Charges and Penal Damages of Rs.3.929 Millions 

Among other actions, names of defaulters put on the EPFO website

31-Mar-2012

 

RELIANCE SECURITIES LIMITED

(Old Name : R.TRADE SECURITIES LIMITED)

(Member : BSE)

 

SEBI 

Alleged violation of various SEBI circulars

Alleged violation of code of conduct prescribed for stock brokers in schedule ii under regulation 7 of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992

Reached Settlement (Settlement Charges Rs.2.500 Millions Vide Consent Order)

Reached Settlement (Consent Order) (Agreed Voluntarily not to register new clients for a period of 45 Days) from 16-Jun-2011

Reached Settlement (Consent Order) (Agreed Voluntarily to spend a sum of Rs.10.000 Millions on Investor Education and Awareness Programme and on Development of Materials focusing on making investors more aware of their rights in connection with internet based trading in securities market within 6 months from date of receipt of this consent order) From 16-Jun-2011

09-Jun-2011

 

RELIANCE SECURITIES LIMITED

(Old Name : R.TRADE SECURITIES LIMITED)

(Member : NSE)

 

SEBI 

Alleged violation of various SEBI circulars

Alleged violation of code of conduct prescribed for stock brokers in schedule ii under regulation 7 of SEBI (Stock Brokers AND Sub-Brokers) Regulations, 1992

Reached Settlement (Settlement Charges Rs.2.500 Millions Vide Consent Order)

Reached Settlement (Consent Order) (agreed voluntarily not to register new clients for a period of 45 Days) From 16-Jun-2011

Reached settlement (consent order) (agreed voluntarily to spend a sum of Rs.10.000 Millions on investor education and awareness programme and on development of materials focusing on making investors more aware of their rights in connection with internet based trading in securities market within 6 months from date of receipt of this consent order) From 16-Jun-2011

09-Jun-2011

 

RELIANCE SECURITIES LIMITED 

(Old Name : R.TRADE SECURITIES LIMITED)

(Member : MCX)

 

SEBI 

Alleged violation of various SEBI circulars

Alleged violation of code of conduct prescribed for Stock Brokers in Schedule II Under Regulation 7 of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992

Reached settlement (settlement charges Rs.2.500 Millions vide consent order)

Reached Settlement (Consent Order) (Agreed Voluntarily not to register new clients for a period of 45 days) From 16-Jun-2011

Reached settlement (consent order) (agreed voluntarily to spend a sum of Rs.10.000 Millions on investor education and awareness programme and on development of materials focusing on making investors more aware of their rights in connection with internet based trading in securities market within 6 Months From Date of Receipt of this consent order) From 16-Jun-2011

09-Jun-2011

 

 

 

INDEX OF CHARGES - No Charges Exist For Company

 

 

Note:

The registered office of the company has been shifted from 4th Floor, Parijat House, Manjrekar Lane, Off Dr E. Moses Road, Worli Naka, Mumbai - 400018, Maharashtra, India to the present w.e.f.10.07.2010

 

 

BACKGROUND

 

Subject was incorporated on 17 June 2005. The Company is licensed by the Securities and Exchange Board of India (SEBI) to operate as stock broker.

 

 

OPERATIONS:

 

(a) Redemption of Preference Shares

 

During the year, the Company has redeemed 2.5 crore - 10% Cumulative Redeemable Preference Shares of Rs. 10/- each aggregating to Rs. 250.000 Millions on November 28, 2011, in accordance with the terms of issue of the same, from out of profits otherwise available for dividend.

 

(b) Hiving-off of Merchant Banking business

 

During the year, as approved by the members at the extraordinary general meeting held on January 18, 2011, the Merchant Banking business of the Company has been hived-off with effect from February 13, 2012.

 

(c) Credit Rating

 

During the year:-

(i) ICRA Limited has, at the Company’s request, withdrawn the extant credit rating of [ICRA] A1+ assigned to the Company for its Rs.5000.000 Millions - Short Term Debt Programme, vide their letter dated January 16, 2012.

 

(ii) ICRA Limited has assigned a short-term rating of [ICRA] A1+ for Rs.2000.000 Millions Bank Lines of Credit (Basel II Ratings) of the Company, vide their letter dated January 24, 2012.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2012

31.03.2011

 

 

(Rs. in Millions)

i Guarantees given by scheduled banks

 

 

On behalf of the Company towards collateral security deposit in favour of Bombay Stock Exchange Limited

 

 

- Cash Segment

101.000

101.000

- Futures and Options segment

5.000

5.000

On behalf of the Company towards collateral security deposit in favour of National Stock Exchange Limited

 

 

- Cash Segment

200.000

200.000

- Futures and Options segment

52.500

2.500

ii. Unpaid and undeclared dividend on 10% cumulative redeemable preference shares (includes dividend distribution tax)

689.855

644.550

iii. Capital commitments

 

 

Estimated amount of contracts remaining to be executed on capital account (net of advances)

10.941

1.075


FIXED ASSETS:

 

­      Furniture and fixtures

­      Vehicles

­      Office equipment

­      Computer equipments

­      Other equipments

­      Leasehold improvements

­      Computer software


 

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. 59.69

UK Pound

1

Rs. 91.66

Euro

1

Rs. 78.69

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

8

--RESERVES

1~10

7

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

58

 

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.