MIRA INFORM REPORT

 

 

Report Date :

29.06.2013

 

IDENTIFICATION DETAILS

 

Name :

TECHNOVA IMAGING SYSTEMS PRIVATE LIMITED (w.e.f. 12.04.1993)

 

 

Formerly Known As :

TECHNOVA PLATE MAKING SYSTEMS LIMITED

 

 

Registered Office :

Laxmi Mills Estate, Off. Dr. E. Moses Road, Mahalaxmi, Mumbai-400011, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

29.08.1979

 

 

Com. Reg. No.:

11-021599

 

 

Capital Investment / Paid-up Capital :

Rs.119.637 Millions

 

 

CIN No.:

[Company Identification No.]

U74999MH1979PTC021599

 

 

PAN No.:

[Permanent Account No.]

AAACT2165J

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing and Trading of Imaging Products.

 

 

No. of Employees :

1160 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (33)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1600000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record. There appears drastic fall in the profitability during 2012. The external borrowing appears to be huge.

 

However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating: BB-

Rating Explanation

Having moderate risk of default regarding timely servicing of financial obligation.

Date

January, 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.

 

 

LOCATIONS

 

Registered / Corporate office :

Laxmi Mills Estate, Off. Dr. E. Moses Road, Mahalaxmi, Mumbai-400011, Maharashtra, India

Tel. No.:

91-22-42200300/ 27412463 / 27412464 (Extension - 480) / 27402589

Fax No.:

91-22-24950322/ 27410261

E-Mail :

corp@technovaworld.com

atulk@technovaindia.com

corp@technova.com

sridhar@technovaindia.com

pnp@technovaworld.com

repro@technovaworld.com

rk@technovaindia.com

plates@technovaworld.com

qps@technovaworld.com

chem@technovaworld.com

films@technovaworld.com

inkjet@technovaworld.com

Website :

http://www.technovaworld.com

 

 

Factory :

Plot No. E1/2/3, MIDC, Taloja, Raigad-410208, Maharashtra, India

Tel. No.:

91-22-27412463

Fax No.:

91-22-27410261

 

 

 

 

National Office :

Located At :

 

·         Ahmedabad

·         Bangalore

·         Chennai

·         Delhi

·         Hyderabad

·         Kochi

·         Kolkata

·         Mumbai (Vidyavihar)

·         Indore

·         Lucknow

 

 

International  Office :

Located At :

 

·         Dubai

·         South Africa

·         East Africa

·         United Kingdom and Europe

·         South America

·         North America

 

 

DIRECTORS

 

As on 29.09.2012

 

Name :

Mr. Pranav Natvarlal Parikh

Designation :

Chairman and Managing Director

Address :

18 A, Manek, L. D. Ruparel Marg, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

18.02.1943

Qualification :

B.Com., MBA Havard

Date of Appointment :

29.08.1979

PAN No.:

AADPP7768H

DIN No.:

00318726

 

 

Name :

Mr. Jivanlal Gulabrai Bhatt

Designation :

Whole Time Director

Address :

556/ A, Shriketan, Adenwala Road, Matunga, Mumbai – 400 019, Maharashtra, India 

Date of Birth/Age :

23.10.1952

Qualification :

M.Sc. (North California State University, U.S.A.)

Date of Appointment :

01.01.1989

PAN No.:

AAAPB8767D

DIN No.:

00435182

 

 

Name :

Mr. Arvind Natvarlal Parikh

Designation :

Director

Address :

8, Palmera, L. D. Ruparel Marg, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

19.10.1927

Date of Appointment :

29.08.1979

PAN No.:

AABPP7241B

DIN No.:

00319473

 

 

Name :

Mr. Mangesh Shripad Kulkarni

Designation :

Director

Address :

201, Moti Mahal, 28 Senapari Bapat Marg, Mahim, Mumbai - 400016, Maharashtra India

Date of Birth/Age :

05.06.1942

Date of Appointment :

18.04.2001

PAN No.:

AACPK7623H

DIN No.:

00347908

 

 

Name :

Mrs. Snehal Arvind Parikh

Designation :

Director

Address :

5, Rushila Building, Carmichal Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

01.02.1955

Date of Appointment :

26.12.1988

DIN No.:

00467965

 

 

Name :

Mrs. Maya Pranav Parikh

Designation :

Whole Time-Director

Address :

18 A, Manek, L D Ruparel Marg, Malabar Hill Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

27.01.1978

Date of Appointment :

14.12.2001

PAN No.:

AFSPP0124P

DIN No.:

00468051

 

 

Name :

Ms. Shelina P. Parikh

Designation :

Whole Time Director

Address :

18 A, Manek, L. D. Ruparel Marg, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

25.07.1968

Qualification :

MBA-Harvard

Date of Appointment :

08.07.1994

PAN No.:

AFVPP8218F

DIN No.:

00468199

 

 

Name :

Mr. Jagdish Natvarlal Parikh

Designation :

Director

Address :

6B, Brighton, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

07.02.1930

Date of Appointment :

29.08.1979

DIN No.:

00348650

 

 

Name :

Mr. Ramkrishnan Gayathri

Designation :

Director

Address :

B1402, Anmol, 14th Floor, Opposite Patel Auto, Off S.V. Road, Goregaon (West), Mumbai – 400062, Maharashtra, India

Date of Birth/Age :

01.03.1963

Date of Appointment :

14.03.2007

DIN No.:

01733464

 

 

KEY EXECUTIVES

 

Name :

CG Ramakrishnan

Designation :

Chief Operating Officer

 

 

Name :

Melville Nornonha

Designation :

Business Unit Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2012

 

Names of Equity Shareholders

No. of Shares

Percentage of Holding

Arvind N Parikh

127600

6.50

Arvind N Parikh (HUF)

3600

0.18

Anuradha Benegal

105500

5.37

Jagdish N Parikh (HUF)

600

0.03

Maya P Parikh and Pranav N Parikh

100200

5.10

Natverlal Parikh (HUF)

4500

0.23

Poorvi A Parikh & Arvind N Parikh

3600

0.18

Pranav N Parikh & Salome Pranav Parikh

850925

43.33

Pranav N Parikh (HUF)

408600

20.81

Salome P Parikh & Pranav N Parikh

71400

3.64

Savita S Parikh & Snehal A Parikh

3600

0.18

Shelina P Parikh & Pranav N Parikh

109800

5.59

Snehal A Parikh & Savita S Parikh

64800

3.30

Sophie Hyams & Pranav N Parikh

1800

0.09

Jivan G Bhatt & Nilakshi Bhatt

1075

0.05

Prashant J Parikh (Trustee of PAN Family Trust)

41300

2.10

Prashant J Parikh

64800

3.30

TOTAL

1963700

99.98

 

Names of Preference Shareholders

No. of Shares

Percentage of Holding

Pranav N. Parikh

1000000

100

TOTAL

1000000

100

 

As on 29.09.2012

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Directors or relatives of Directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Trading of Imaging Products.

 

 

Products :

Item Code No. (ITC Code)

Product Description

84425020

Lithographics Plates

37079010

Chemical Products Mixed for Photo Uses

38140010

Organic Composite Solvent and Thiners

 

 

GENERAL INFORMATION

 

No. of Employees :

1160 (Approximately)

 

 

Bankers :

·         Corporation Bank, Corporate Financial Branch, 104, Bharat House, Ground Floor, Mumbai Samachar Marg, Mumbai – 400023, Maharashtra, India

·         Saraswat Co-Operative Bank

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Long Term Borrowings

 

 

Rupee term loans from banks

241.500

1097.942

Foreign currency term loans from banks

585.550

0.000

Long-term maturities of finance lease obligations

0.256

1.095

Other loans and advances

0.749

2.189

Short Term Borrowings

 

 

Loans repayable on demand from banks

1600.632

1412.925

Total

2428.687

2514.151

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

N.A. Shah and Associates

Chartered Accountants

Address :

B 41 - 45 , Paragon Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400013, Maharashtra, India

PAN No.:

AAAFN5380N

 

 

Associate Company :

Lastra Niraj Private Limited, India

CIN No.: U72900MH1980PTC022514

 

 

Subsidiary :

TechNova Imaging Systems Inc*

 

 

Enterprises, where key management personnel and relatives exercise significant influence :

·         TechNova Parikh Enterprises

·         Lee and Muirhead Private Limited

·         DHL Lemuir Logistics Private Limited

·         A L Movers Private Limited

CIN No.: U63000MH1999PTC121101

 

·         TechNova Graphics Private Limited **

CIN No.: U24110MH1952PTC008855

 

·         DHL DANZAS LEMUIR PRIVATE LIMITED

CIN No.: U63090MH2002PTC135399

 

·         TOYO INK BUSINESSNETWORK INDIA PRIVATE LIMITED

CIN No.: U74900DL2007PTC168260

 

Note:

 

* Ceased to be a Subsidiary w.e.f. 03.08.2011.

** Ceased to be an Associate Company w.e.f. 28.03.2011.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1980000

Equity Shares

Rs.10/- each

Rs.19.800 Millions

1000000

Preferences Shares

Rs.100 /- each

Rs.100.000 Millions

(A)20000

Unclassified Shares

Rs.10/- each

Rs.0.200 Million

 

Total

 

Rs.120.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1963700

Equity Shares

Rs.10/- each

Rs.19.637 Millions

1000000

Preferences Shares

Rs.100 /- each

Rs.100.000 Millions

 

Total

 

Rs.119.637 Millions

 

Note:

 

(A) Break up are as under 1,980,000 Equity shares of Rs. 10/- each and 20,000 Unclassified Shares of Rs. 10/- each

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

 

119.637

119.637

(b) Reserves & Surplus

 

290.076

272.722

(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)

 

409.713

392.359

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

1635.155

1908.863

(b) Deferred tax liabilities (Net)

 

31.790

31.984

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

85.516

114.095

Total Non-current Liabilities (3)

 

1752.461

2054.942

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1600.632

1412.925

(b) Trade payables

 

548.055

459.212

(c) Other current liabilities

 

1279.955

1307.644

(d) Short-term provisions

 

62.971

61.815

Total Current Liabilities (4)

 

3491.613

3241.596

 

 

 

 

TOTAL

 

5653.787

5688.897

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

1789.197

2005.270

(ii) Intangible Assets

 

8.218

16.068

(iii) Capital work-in-progress

 

52.024

1.555

(iv) Intangible assets under development

 

9.649

8.666

(b) Non-current Investments

 

51.120

51.120

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

182.508

149.406

(e) Other Non-current assets

 

8.485

8.455

Total Non-Current Assets

 

2101.201

2240.540

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

1974.329

2112.541

(c) Trade receivables

 

1056.153

820.743

(d) Cash and cash equivalents

 

88.750

24.829

(e) Short-term loans and advances

 

369.222

463.137

(f) Other current assets

 

64.132

27.107

Total Current Assets

 

3552.586

3448.357

 

 

 

 

TOTAL

 

5653.787

5688.897

 

             

SOURCES OF FUNDS

 

 

 

31.03.2010

 

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

119.637

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

73.065

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

192.702

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

2943.993

2] Unsecured Loans

 

 

832.310

TOTAL BORROWING

 

 

3776.303

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

3969.005

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

2201.803

Capital work-in-progress

 

 

4.824

 

 

 

 

INVESTMENT

 

 

75.230

DEFERREX TAX ASSETS

 

 

67.968

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 
 
1525.365

 

Sundry Debtors

 
 
765.270

 

Cash & Bank Balances

 
 
167.651

 

Other Current Assets

 
 
0.000

 

Loans & Advances

 
 
561.600

Total Current Assets

 
 
3019.886

Less : CURRENT LIABILITIES & PROVISIONS

 
 
 

 

Sundry Creditors

 
 
976.737

 

Other Current Liabilities

 
 
286.839

 

Provisions

 
 
136.441

Total Current Liabilities

 
 
1400.017

Net Current Assets

 
 
1619.180

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

3969.005

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

Income

 

 

 

 

 

Other Income

 

 

 

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

NA

NA

NA

 

 

 

 

 

Less

TAX                                                                 

NA

NA

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

17.354

199.652

(14.501)

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

3.51

96.34

(14.501)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

7.90

8.47

19.60

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.02

1.06

2.16

 

 

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

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

No

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

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

FINANCIAL HIGHLIGHTS

 

The Company continued to experience tremendous challenges in the market place under overall economic climate including dumping of products from specific countries which lead to a severe pressure on the margins. The Company has taken appropriate steps in this regard to improve the performance in future.

 

 

UNSECURED LOANS

 

Particulars

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. In Millions)

Long Term Borrowings

 

 

Loans and advances from related parties

807.100

807.637

Total

807.100

807.637

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U74999MH1979PTC021599

Name of the company

TECHNOVA IMAGING SYSTEMS PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

Laxmi Mills Estate, Sakti Mills L, Off. Dr. E. Moses Road, Mahalakshmi – 400011, Mumbai, Maharashtra, India

E-mail: rk@technovaindia.com

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

90213299

Type of charge

Immovable property

Book debts

Movable property (not being pledge)

Floating charge

Particular of charge holder

Corporation Bank, Corporate Financial Branch, 104, Bharat House, Ground Floor, Mumbai Samachar Marg, Mumbai – 400023, Maharashtra, India

E-mail: csniteshjain@gmail.com

Nature of instrument creating charge

a) Joint Supplemental Deed of Hypothecation dated 12.07.2012,

b) Joint Supplemental working capital consortium Agreement dated 12.07.2012,

c) Supplemental Inter Se Agreement dated 12.07.2012 and

d) Memorandum of Entry and joint Mortgage by Deposit of title Deeds in respect of Immovable Properties dated 12.07.2012 (Collectively constitute a single charge for Rs.4093.700 millions)

Date of instrument Creating the charge

12.07.2012

Amount secured by the charge

Rs. 4093.700 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As may be stipulated by the bank from time to time.

 

Terms of Repayment

a) Working capital facilities to be repayable on demand; and

b) Term Loans granted by Corporation Bank, Saraswat Cooperative Bank Ltd and Indian Bank shall be repayable in accordance with the terms and conditions stipulated in respective sanction letters of  and/or as stated in the relevant security documents as amended from time to time.

 

Margin

As may be stipulated by the bank from time to time.

 

Extent and Operation of the charge

The Company accorded its consent to Corporation Bank and Corporation Bank acting for itself and as agent of Saraswat Co-Operative Bank, Indian Bank and Indian Overseas Bank to continue to hold and retain the title deeds (by way of constructive delivery) and further deposited certain supplemental title deeds in respect of its immovable properties as security, for repayment of credit facilities given in Annexure I & II, by the borrower to Corporation Bank Consortium.

 

Others

a) The Charge created herein by the Company shall be on second pari passu inter se the members of Corporation Bank consortium to secure the working capital facilities for all purposes and to all intents without any priority of one over the others; and

b) The Charge created herein by the Company shall be on first pari passu inter se Corporation Bank, Saraswat Co. Op. Bank and Indian Bank to secure their Term Loans for all purposes and to all intents without any priority of one over the others.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Hypothecation of Current assets on pari passu first charge basis to secure Working Capital Facilities of Corporation Bank Consortium

 

Hypothecation of Movable Fixed Assets by way of Pari Passu Second Charge basis to secure Working Capital Facilities of Corporation Bank Consortium

 

Hypothecation of Movable Fixed Assets on first Pari Passu Charge basis to secure Term Loan Facilities granted/to granted by Corporation Bank, Saraswat Co-Op Bank and Indian Bank

 

Hypothecation of Current assets on Second pari passu charge basis to secure Term Loan Facilities granted/to granted by Corporation Bank, Saraswat Co-Op Bank and Indian Bank

 

Company's immovable properties lying and situated at Plot No. E-2/2, E-2/1, E-1, E-3, C-2, 17/1 and T-4 in Taloja Industrial Area, with in the limits of Pendhar Village, Taluka Panvel, Distt. Raigarh.

Date of instrument modifying the charge

24.06.2011

Particulars of the present modification

The Consortium shall now stands increased/modified/revised up to Rs.4093.700 millions in favour of the Corporation Bank consortium (for their Term Loans facilities of Rs.1343.700 millions and Working capital facilities of Rs.2750.000 millions) against security of Company's immovable properties, movable properties and Book Debts etc. being lying and situated in Taloja Industrial Area of MIDC.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. in millions)

PARTICULARS

31.03.2012

31.03.2011

(i) Disputed tax liabilities are as under:

 

 

a) Sales tax (refer note a)

18.616

24.891

b) Income tax (refer note b)

0.556

0.159

c) Central excise (refer note c)

20.431

20.431

d) Service tax on royalty (refer note d)

16.053

34.313

e) Disallowance of abatement on service tax in respect of

goods transport agency

1.446

1.446

Total

57.102

81.240

 

Note :

 

a.     The total amount consists of following items:

 

i) Demand for differential tax, interest and penalty on account of non submission of forms and improper tariff classification by the department. Against the demand of Rs.18.616 Millions (Previous year Rs.6.792 Millions), a sum of Rs 1.441 Millions (Previous year Rs.1.441 Millions) has been deposited under protest.

 

ii) Demand of Rs.Nil (Previous year Rs. 18.099 Millions) on account of non payment of entry tax, interest and penalties thereon for the period from 2005-06 to 2009-10.

 

b. i) In respect of Income Tax demand amounting to Rs 0.159 Million for AY 2008-2009, the Company has paid the amount in full. In respect of Income Tax demand amounting to Rs.0.396 Million for AY 2003-2004 and 2004-2005, the Company has not paid the amount as on 31st March, 2012. The Company has preferred an appeal before the CIT (A).

 

ii) Appeals for Assessment years 1991-92 and 1992-93 are pending before the Honorable Bombay High Court without any demand being raised by the department. Hence, contingent tax liability is not quantified.

 

c. The total amount consist of following items:

i) An order has been passed by the Commissioner on the Show cause cum demand notice levying penalty of Rs.47.799 Millions (Previous year Rs.47.799 Millions) in respect of three financial years. The Company had already paid the excise duty and interest in the year in which short payment / irregularities were noticed. As per the Company’s contention, the penalty is not tenable in law. In view of the expert’s advice and facts of the case the Company does not envisage any liability. However, the Company has paid Rs.11.949 Millions in previous year (Previous year Rs.11.949 Millions) representing 25% of the penalty demanded to restrict the final penalty amount.

 

ii) Differential tax and penalty of Rs.7.814 Millions (Previous year Rs. 7.814 Millions) on account of suo moto adjustment by Company in provisional assessments of earlier years. Against which Rs.1.000 Million (Previous year Rs.1.000 Million) have been deposited under protest.

 

iii) Rs.0.667 Million (Previous year Rs. 0.667 Million) pertains to interest and penalty on account of wrong availment of cenvat credit on capital goods.

 

d. i) Show cause cum demand notices amounting to Rs.Nil # (Previous year Rs.15.836 Millions) on account of service tax on royalty taxable under the head management consultancy.

 

ii) Rs.Nil # (Previous year Rs 2.424 Millions) on account of service tax on royalty taxable under the head Intellectual Property Rights.

 

iii) Demand of Rs.16.052 Millions (Previous year Rs 16.052 Millions) on account of penalties for service tax on royalty taxable under the head Intellectual Property Rights. Out of above demand, the Company has deposited Rs.2.468 Millions (Previous year Rs. 2.468 Millions) under protest.

 

# In the opinion of the management, liability is no longer payable in view of CBEC circular no. 276/8/2009-CX8A dated 26th September 2011. Therefore, no disclosure as contingent liability as on 31st March 2012 is made. However, department is yet to pass the final order.

 

In respect of (a) to (d) above, interest claims may be payable as and when the outcome of the related claim is determined. Future cash flow in respect of the above is determinable only on disposal of assessments / appeal.

 

(ii) Guarantees given by banks on behalf of the Company Rs.76.923 Millions (Previous year Rs. 89.801 Millions)

 

(iii) Letter of credits opened remain unutilized Rs. 55.960 Millions (Previous year Rs. 85.898 Millions).

 

(iv) Guarantees given by the Company on behalf of Associates is Rs.Nil (Previous year Rs.105.000 Millions).

 

(v) The export obligation pending to be fulfilled is Rs Nil (Previous year Rs.2.286 Millions).

 

(vi) Total amount of preference dividend on cumulative preference shares Rs 26.308 Millions (Previous year Rs 15.900 Millions) (including dividend distribution Tax of Rs. 3.672 Millions (Previous year Rs. 2.264 Millions).

 

Note: Cumulative dividend distribution tax which includes tax for earlier periods is based on revised surcharge rate of 5%. Earnings per share is based on applicable yearly surcharge rate.

 

 

FIXED ASSETS

 

â  Tangible Assets

·         Land

·         Buildings

·         Factory Building

·         Plant and Equipment

·         Other plant and Equipment

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Computer Equipments

·         Other Equipments

â  Intangible Assets

·         Goodwill

·         Computer software

·         Copyrights, patents and other operating rights

·         Patents

·         Commercial contractual rights


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.91.14

Euro

1

Rs.77.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

33

 

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

 

 

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.