MIRA INFORM REPORT

 

 

 

 

Report Date :

21.03.2013

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE COMMUNICATIONS INFRASTRUCTURE LIMITED (w.e.f. 07.03.2002)

 

 

Formerly Known As :

SUKHKATRA FINTRADE PRIVATE LIMITED

 

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012 (Profit and Loss Account)

 

 

Date of Incorporation :

17.07.1997

 

 

Com. Reg. No.:

11-166329

 

 

Capital Investment / Paid-up Capital :

Rs. 2010.200 Millions

 

 

CIN No.:

[Company Identification No.]

U64203MH1997PLC166329

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELR10472A

 

 

PAN No.:

[Permanent Account No.]

AACCS2157H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Internet Services, Telecom Terminals and accessories, Marketing and Commission, Home Business, O and M Services and Others.

 

 

No. of Employees :

300 (Approximately)

 

 

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 121220000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having a fine track record. Even though the company has achieved better growth in its revenue earned from operations, it has incurred loss during 2012.

 

However, financial position of the company appears to be sound. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INDIAN ECONOMIC OVERVIEW

 

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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

A1+ (Short Term Rating)

Rating Explanation

Having very strong degree of safety regarding timely payment of financial obligation It carry lowest credit risk.

Date

29.06.2012

 

 

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.

 

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400710, Maharashtra, India

Tel. No.:

91-22-30386286/ 22847006/ 30385010

Fax No.:

91-22-30376622

E-Mail :

hitesh.marthak@relianceada.com

chawda@relianceada.com

tulsi.dadlani@relianceada.com

Website :

http://www.relianceda.com

 

 

Corporate Office :

“Brindavan”, 2nd Floor, Shree Ram Mils Premises, Ganpatrao Kadam Marg, Worli, Mumbai – 400013, Maharashtra, India

 

 

Branches :

Located at :-

 

·          Mumbai

·         Bangalore

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Hasit Navinchandra Shukla

Designation :

Director

Address :

403, Sabita Co-operative Housing Society Limited, Plot No. 596, CTS F/38, 16th Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

28.08.1962

Qualification :

B Com, FCS, LLB

Date of Appointment :

30.09.2010

Voter ID No.:

ROL3044492

DIN No.:

00004549

 

 

Name :

Mr. Gautam Bhailal Doshi

Designation :

Director

Address :

B-131, Grand Paradi, August Kranti Marg, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

23.12.1952

Qualification :

FCA

Date of Appointment :

26.06.2005

DIN No.:

00004612

 

 

Name :

Mr. Suresh Madihally Rangachar

Designation :

Director

Address :

37, Gulistan Apartment, 9, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

14.05.1964

Qualification :

Master in Computer Science

Date of Appointment :

30.09.2010

DIN No.:

00020887

 

 

KEY EXECUTIVES

 

Name :

Mr. Hitesh Lalitbhai Marthak

Designation :

Dy. Company Secretary

Address :

E-301, Lily, Jalvayu Vihar Phase 1, NR Shilp Chowk, Navi Mumbai – 410210, Maharashtra, India

Date of Birth/Age :

25.10.1975

Date of Appointment :

01.08.2010

PAN No.:

ACDPM9248D

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Equity Shareholders

 

No. of Shares

 

Prakash Shenoy Jointly with Reliance Communications Limited, India

 

1

Anil C Shah Jointly with Reliance Communications Limited, India

 

1

Gaurang Shah Jointly with Reliance Communications Limited, India

 

1

Hitesh Marthak Jointly with Reliance Communications Limited, India

 

1

Hasit Shukla Jointly with Reliance Communications Limited, India

 

1

Hitesh Chawda Jointly with Reliance Communications Limited, India

 

1

Reliance Communication Limited, India

 

2009999994

 

 

 

Total

 

2010000000

 

 

Names of Preference Shareholders

 

No. of Shares

 

Reliance Communication Limited, India

 

20000

 

 

 

Total

 

20000

 

 

AS ON 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Internet Services, Telecom Terminals and accessories, Marketing and Commission, Home Business, O and M Services and Others.

 

 

Products :

ITC Code

Product Descriptions

99546194

installation services of telecommunication wiring, including of fiber optic cables

 

 

GENERAL INFORMATION

 

No. of Employees :

300 (Approximately)

 

 

Bankers :

·         Axis Bank Limited

Central Office, Maker, Towers – F, 13th Floor, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

 

 

 

Banking Relations :

--

 

 

Financial Institution:

·         Axis Trustee Services Limited

Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

 

·         Axis Trustee Services Limited

Maker Towers 'F', 13th Floor, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

709, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400 021, Maharashtra, India

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

AAAFC0662N

 

 

Ultimate Holding Company :

Reliance Innoventures Private Limited

 

 

Holding Company :

·         Reliance Communications Limited [L45309MH2004PLC147531]

·         Reliance Infratel Limited [U72900MH2001PLC131598]

 

 

Subsidiary Companies (includes direct and step down subsidiary companies :

·         Reliance Communications Investments and Leasing Limited [U64201MH2001PLC131600]

·         Matrix Innovations Limited (Upto 31.03.2010) [U99999MH2000PLC125991]

·         Netizen Rajasthan Limited [U45400MH2000PLC128387]

·         Reliance Global IDC Limited (Merged with Reliance Infratel Limited wef.01.01.2011)

 

 

Fellow Subsidiaries :

·         Global Innovative Solutions Private Limited ( Upto 31/03/2010)

·         Reliance Wimax Limited

·         Reliance Webstore Limited [U72900MH2000PLC128101]

·         Reliance Communications International Inc.

·         Reliance Communications Inc.

·         Reliance Communications Hongkong Limited

·         Reliance Globalcom Limited, Bermuda and its Subsidiaries

·         Reliance Telecom Limited [U32100MH1994PLC162841]

·         Gateway Net Trading Pte. Limited Singapore.

·         Reliance Big 4TV Limited [U45203MH2005PLC153294]

·         Reliance Tech Services Private Limited [U72900MH2007PTC172690]

·         Reliance Infocomm Infrastructure Private Limited [U45300MH1993PTC173775]

·         Reliance Globalcom B.V. Nederland

 

 

Joint Venture :

·         Alcatel Lucent Managed Solutions India Private Limited [U64203MH2008PTC182748]

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,400,000,000

Equity Shares

Re. 1/- each

Rs. 2400.000 Millions

10,000,000

Preference Shares

Rs. 10/- each

Rs. 100.000 Millions

 

Total

 

Rs. 2500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,010,000,000

Equity Shares

Re. 1/- each

Rs. 2010.000 Millions

20,000

Preference Shares

Rs. 10/- each

Rs. 0.200 Million

 

Total

 

Rs. 2010.200 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

2010.200

2010.200

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

28294.100

27006.900

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

30304.300

29017.100

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

27746.700

22640.000

TOTAL BORROWING

 

27746.700

22640.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

58051.000

51657.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

9352.200

10171.200

Capital work-in-progress

 

16800.500

26651.200

 

 

 

 

INVESTMENT

 

3261.700

3257.300

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 
1085.700
1121.100

 

Sundry Debtors
 
10733.100
8552.400

 

Cash & Bank Balances
 
6433.400
1476.400

 

Other Current Assets
 
3693.500
2168.100

 

Loans & Advances
 
47663.200
37591.100

Total Current Assets
 
69608.900

50909.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 
31923.200

25967.000

 

Other Current Liabilities
 
7504.600

10534.300

 

Provisions
 
1544.500

2830.400

Total Current Liabilities
 
40972.300

39331.700

Net Current Assets
 
28636.600

11577.400

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

58051.000

51657.100

 

Note: Balance Sheet for the current year i.e.2011-2012 is not available, only Profit and Loss account is available.  

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

48075.700

42425.900

44170.700

 

 

Other Income

7199.200

4768.800

18.200

 

 

TOTAL                                     (A)

55274.900

47194.700

44188.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit expense

863.900

2030.900

1205.800

 

 

Manufacturing service costs

0.000

0.000

12166.600

 

 

Other expenses

55752.500

38866.100

26853.400

 

 

TOTAL                                     (B)

56616.400

40897.000

40225.800

 

 

 

 

 

Less

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

(1341.500)

6297.700

3963.100

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

210.200

101.300

(2325.100)

 

 

 

 

 

 

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

(1551.700)

6196.400

6288.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

4261.700

5483.700

4630.800

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                 (G)

(5813.400)

712.700

1657.400

 

 

 

 

 

Less

TAX                                                                  (H)

(1090.300)

(1280.800)

1562.500

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(4723.100)

1993.500

94.900

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4741.800

2748.300

2653.400

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

18.700

4741.800

2748.300

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

83.600

153.900

3219.700

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

1821.800

1953.300

1470.600

 

 

Traded Goods

2641.800

262.400

246.600

 

TOTAL IMPORTS

4463.600

2215.700

1717.200

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(2.35)

0.99

0.05

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
(8.54)
4.22

0.21

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(12.09)
1.68

3.75

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
N.A.
0.90

2.71

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
N.A.
0.02

0.06

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
N.A.
0.92

0.78

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
N.A.
1.70

1.29

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2012

31.03.2011

 

31.03.2010

 

(Rs. In Millions)

Sundry Creditors

 

 

 

Micro Small and Medium Enterprises

 

512.700

189.800

Others

 

31410.500

25777.200

 

 

 

 

Total

N.A.
31923.200

25967.000

 

 

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

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

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

Yes

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOANS

 

Particulars

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

 

 

 

Foreign currency loans

4937.600

Loans subsidiaries

 

6500.000

Others Debts

 

16309.100

 

 

 

Total

 

N.A.

27746.700

 

NOTES:

 

Buyer’s Credit

 

Includes: Short Term Loans: From Holding Company: Rs.15309.100 Millions, and From Body Corporate: Rs.1000.000 Millions

 

 

 

Note:

The registered address of the company has been shifted from Reliance House, Near Maradia Plaza, Off. C G Road, Ahmedabad – 380006, Gujarat, India to the present w.e.f.04.12.2006

 

 

SCHEME OF ARRANGEMENT:

 

In terms of the Scheme of Arrangement between the Company and Matrix Innovations Limited (MIL), a wholly owned subsidiary; and their respective shareholders and creditors, MIL was merged into the Company. The said Scheme was sanctioned by the Hon'ble High Court of Judicature at Bombay vide order dated 6th May 2011 and was made effective from 25th May, 2011. The appointed date was 1st April 2010.

 

In terms of the Scheme of Arrangement between the Company and Broadband Pacenet India Private Limited ("Pacenet"), the retail broadband and DTH (Direct to Home) Hardware business, as defined in the Scheme, of the Company shall be transferred and vested into "Pacenet", with effect from the Appointed Date 1st April 2010. The said Scheme was sanctioned by the Hon'ble High Court of Judicature at Bombay vide order dated 25th February 2011. The Scheme is conditional and subject to requisite approval of the Central Government and other Regulatory authorities which are still awaited.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U64203MH1997PLC166329

Name of the company

RELIANCE COMMUNICATIONS INFRASTRUCTURE LIMITED

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

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400710, Maharashtra, India

Email: hitesh.marthak@relianceada.com

This form is for

Creation of charge

Type of charge

Movable property (not being pledge)

Particular of charge holder

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

Email: debenturetrustee@axistrustee.com

CIN No.: U74999MH2008PLC182264

Nature of description of the instrument creating or modifying the charge

Deed of Hypothecation dated 22nd January, 2013 executed by Reliance Communications Limited, Reliance Communications Infrastructure Limited, Reliance Infratel Limited and Reliance Telecom Limited, the Chargors in favour of Axis Trustee Services Limited acting as the Security Trustee for facility of Rs. 3000.000 Millions sanctioned by IDBI Bank.

Date of instrument Creating the charge

22.01.2013

Amount secured by the charge

Rs. 3000.000 Millions

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

Rate of Interest

13 % p.a

 

Terms of Repayment

6 Months (More particularly described in the sanction letter issued)

 

Margin

Not Applicable

 

Extent and Operation of the charge

Second pari-passu charge on Chargers (Reliance Communications Limited; Reliance Telecom limited; Reliance Communications Infrastructure Limited; Reliance Infratel Limited ) assets,

 

Others

Not Applicable

Short particulars of the property charged

All and singular of the whole of the Chargers present and future moveable plant and machinery including tower assets and optic fibre cables and capital work in progress

 

 

CONTINGENT LIABILITIES (AS ON 31.03.2011):

 

a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for – Rs. 433.100 Millions

 

b) Disputed Liabilities in Appeal:

·          Sales Tax/ VAT/CST – Rs. 1149.200 Millions

·          Entry Tax – Rs. 51.900 Millions

·          Customs Duty – Rs. 103.700 Millions

 

 

FIXED ASSETS

 

·         Freehold Land

·         Buildings

·         Plant and Machinery

·         Electrical Installations

·         Office Equipment

·         Furniture and Fixtures

·         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. 54.38

UK Pound

1

Rs. 82.07

Euro

1

Rs. 70.04

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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.