MIRA INFORM REPORT

           

 

 

Report Date :

17.05.2013

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE TELECOM LIMITED

 

 

Registered Office :

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

01.03.1994

 

 

Com. Reg. No.:

11-162841

 

 

Capital Investment / Paid-up Capital :

Rs.800.000 Millions

 

 

CIN No.:

[Company Identification No.]

U32100MH1994PLC162841

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR08293F

 

 

PAN No.:

[Permanent Account No.]

AAACR2658E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing global system for mobile communications (GSM) based services

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 3800000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Reliance ADA Group Company. It is a well established company having a satisfactory track record. There appears huge external borrowings recorded by the company. 

 

However, trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitment.

 

In view of strong holding, the company can be considered normal for business dealings at usual trade terms and conditions.

 

Note: Reliance Communications Maharashtra Private Limited (RCMPL) was merged into the subject company which was made effective from 25th May, 2011.

 

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

Long Term Borrowing = BBB+

Rating Explanation

Moderate degree of safety and moderate credit risk

Date

January 2013

 

Rating Agency Name

ICRA

Rating

Short Term Borrowing = A2+

Rating Explanation

Strong degree of safety and low credit risk

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.

 

INFORMATION DECLINED

 

Management Non-Cooperative (91-22-30386286)

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra, India

Tel. No.:

91-22-30386286

Fax No.:

91-22-30376622

E-Mail :

htoprani@leelalace.com

hitesh.chawda@relianceada.com

Website :

http://www.rcom.co.in

Location :

Owned

 

 

Corporate Office :

“A” Block, 2nd Floor, Dhirubhai Ambani Knowledge City, Opposite. Koparkhairana Railway Station, Thane Belapur Road, Navi Mumbai – 400709, Maharashtra, India

Tel. No.:

91-22-30373333

 

 

DIRECTORS

 

As on 29.09.2012

 

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

Date of Appointment :

30.01.2007

DIN No.:

00004612

 

 

Name :

Mr. Sateesh Seth

Designation :

Director

Address :

4th Floor, Summer Villa,, 7th Road, Santacruz (East), Mumbai – 400055, Maharashtra, India

Date of Birth/Age :

13.08.1955

Date of Appointment :

11.04.1997

DIN No.:

00004631

 

 

Name :

Mr. Prakash Shenoy

Designation :

Director

Address :

Flat No.104, Fortuna B, Lodha Paradise, Near Majiwada Flyover, Eastern Express Highway, Thane (West), Mumbai – 400601, Maharashtra, In

Date of Birth/Age :

01.05.1973

Date of Appointment :

28.05.2011

DIN No.:

00005394

 

 

KEY EXECUTIVES

 

Name :

Mr. Gaurang Chhotalal Shah

Designation :

Secretary

Address :

Flat No. 204, A Wing, Raj Vaibhav-1, Mahavir Nagar, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

13.12.1961

Date of Appointment :

01.09.2004

Pan No.

AAIPS5292A

 

 

Name :

Mr. Viraj Hemchand Karani

Designation :

Manager

Address :

E Room No.24, Kanjur Estate, Near Railway Station, Kanjurmarg (West), Behind Sainath Hotel, Mumbai – 400078, Maharashtra, India

Date of Birth/Age :

18.06.1985

Date of Appointment :

13.03.2011

Pan No.

BAYPK1278F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2012

 

Names of Shareholders (Equity Shares)

 

No. of Shares

Reliance Infocomm Infrastructure Private Limited, India

 

7419900

Prakash Shenoy Jointly with Reliance Communications Limited, India

 

1

Anil C. Shah Jointly with Reliance Communications Limited, India

 

1

Gaurang C. Shah 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 Communications Limited, India

 

27580095

Total

 

35000000

 

 

Names of Shareholders (Preference Shares)

 

No. of Shares

Reliance Communications Limited, India

 

45000000

Total

 

45000000

 

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing global system for mobile communications (GSM) based services

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

IDBI Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

LONG-TERM BORROWINGS

 

 

Term Loan from Banks

 

 

Foreign Currency Loans

10982.600

4059.500

Rupee Loans

100.000

100.000

SHORT-TERM BORROWINGS

 

 

Loan from Banks Rupee Loans

3000.000

0.000

Total

14082.600

4159.500

 

The Company has taken Secured Loans, which have been secured by way of first pari passu charge on movable plant and machinery, including (without limitations) tower assets and optic fiber cables, if any (whether attached or otherwise), capital work-in-progress (pertaining to movable fixed assets), both present and future, including all the rights, title, interest, benefits, claims and demands in respect of all insurance contracts relating thereto of the RCOM Group; comprising of the Company, Reliance Communications Limited (RCOM), the Holding Company and its fellow subsidiaries namely Reliance Infratel Limited (RITL) and Reliance Communications Infrastructure Limited (RCIL) in favour of the Security Trustee for the benefit of the Lenders. Apart from the above, the Company, in favour of the Lenders of the said Secured Loans, has also assigned eight Unified Access Services (UAS) Licences, by execution of Tripartite Agreements with Department of Telecommunications (DoT) and IDBI Bank, being the agent acting on behalf of the Lenders.

 

(Rs. In Millions)

Rate of Interest (per annum)

Repayment Schedule

 

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

0.5555%

533.300

536.300

536.300

536.300

536.300

574.900

616.000

204.400

58.100

0.9000%

13.800

13.900

13.900

13.900

13.900

14.900

16.000

5.300

1.500

2.7715%

134.000

334.900

468.700

468.700

1473.300

1607.200

1272.400

937.600

-

2.7133%

0.900

2.300

3.300

3.300

10.300

11.200

8.900

6.600

-

13.0000%

-

-

100.000

-

-

-

-

-

-

 

 

 

Banking Relations :

--

 

 

Financial Institutions :

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

 

 

Auditors 1:

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India

PAN.:

AAAFC0662N

 

 

Auditors 2:

 

Name :

Price Waterhouse

Chartered Accountants

Address :

252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai - 400028, Maharashtra, India

PAN.:

AABCP9181H

 

 

Holding Company :

Reliance Communications Limited

 

 

Fellow Subsidiary Company :
  • Reliance Communications Infrastructure Limited
  • Reliance Infratel Limited
  • Reliance Tech Services Private Limited
  • Netizen Rajasthan Limited
  • Reliance IDC Limited
  • Reliance Webstore Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

120000000

Equity Shares

Rs.10/- each

Rs.1200.000 Millions

100000000

Preference Shares

Rs.10/- each

Rs.1000.000 Millions

280000000

Unclassified Shares

Rs.10/- each

Rs.2800.000 Millions

 

Total

 

Rs.5000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

35000000

Equity Shares

Rs.10/- each

Rs.350.000 Millions

45000000

1% Non Convertible Non Cumulative Preference Shares

Rs.10/- each

Rs.450.000 Millions

 

Total

 

Rs.800.00 Millions

 

Disclosure of shareholding more than five per cent in company

Name of shareholder

Number of shares held in company

Percentage of shareholding in company

Reliance Communications Limited

2,75,80,100

78.80%

Reliance Infocomm Infrastructure Private Limited

74,19,900

21.20%

Reliance Communications Limited

4,50,00,000

100.00%

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

800.000

800.000

800.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

151.200

0.000

2000.000

4] (Accumulated Losses)

0.000

(1251.700)

(1072.600)

NETWORTH

951.200

(451.700)

1727.400

LOAN FUNDS

 

 

 

1] Secured Loans

14082.600

4159.500

0.000

2] Unsecured Loans

19154.000

18390.600

61665.900

TOTAL BORROWING

33236.600

22550.100

61665.900

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

34187.800

22098.400

63393.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

47520.800

20214.700

16809.700

Capital work-in-progress

8118.300

26527.900

11710.900

 

 

 

 

INVESTMENT

0.000

0.000

29524.100

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
118.500

110.900
136.800

 

Sundry Debtors
1971.000

794.600
1045.000

 

Cash & Bank Balances
65.300

162.900
1192.500

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
22339.400

21178.800

15076.700

Total Current Assets
24494.200

22247.200

17451.000

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
7611.800

4232.900
9793.900

 

Other Current Liabilities
38305.600

42603.700
2230.000

 

Provisions
28.100

54.800
78.500

Total Current Liabilities
45945.500

46891.400

12102.400

Net Current Assets
(21451.300)

(24644.200)
5348.600

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

34187.800

22098.400

63393.300

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

26344.400

23461.600

20739.400

 

 

Other Income

95.000

539.400

2055.300

 

 

TOTAL                                     (A)

26439.400

24001.000

22794.700

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

21736.200

20968.400

 

 

Employee benefit expense

1090.100

397.800

18628.800

 

 

Other expenses

5044.300

1736.300

 

 

 

Exceptional items

1650.200

0.100

 

 

 

TOTAL                                     (B)

29520.800

23102.600

18628.800

 

 

 

 

 

Less

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

(3081.400)

898.400

41.65.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

602.500

609.400

1168.700

 

 

 

 

 

 

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

(3683.900)

289.000

2997.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

(5086.800)

3178.600

1890.800

 

 

 

 

 

 

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

1402.900

(2889.600)

1106.400

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

(710.500)

773.600

 

 

 

 

 

 

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

1402.900

(2179.100)

332.800

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(3251.700)

(1072.600)

(1405.400)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

(3251.700)

(1072.600)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

International Roaming

376.400

241.800

132.000

 

 

Other Earnings

94.800

0.000

0.000

 

TOTAL EARNINGS

471.200

241.800

132.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

1589.200

6867.400

331.600

 

TOTAL IMPORTS

1589.200

6867.400

331.600

 

 

 

 

 

 

Earnings /(Loss) Per Share (Rs.)

87.23

(62.26)

9.51

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
5.31

(9.08)
1.46

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
5.33

(12.32)
5.33

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
1.95

(6.81)
3.23

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
1.47

6.40
0.64

 

 
 

 
 

Debt Equity Ratio

(Total Debt /Networth)

 
34.94

(49.92)
35.70

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
0.53

0.47
1.44

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

(Rs. in millions)

Particulars

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

Micro and Small Enterprises

515.600

410.900

121.000

Related Parties

5244.900

1640.300

0.000

Others

1851.300

2181.700

9672.900

Total

7611.800
4232.900
9793.900

 

 

 

 

 

 

 

 

 

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

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

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

NOTE:

 

 The registered office address of the company has been shifted from Main Admn Building Block No. GF-1 Village – Meghpar/Padana, Lalpur, Jamnagar – 361280, Gujarat, India to the present address w.e.f. 01.05.2006.

 

 

BUSINESS SEGMENT

 

The Company has identified two reportable Business Segments viz. Wireless Business (Cellular Mobile Telephone Services in Eight Telecom Circles across India) and Treasury Operations.

 

 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

During the year, net billing revenue of the Company increased to Rs. 26344.400 Millions, signifying a growth of 12% over the corresponding amount of Rs. 23461.600 Millions during the previous year.

 

Operating loss for the year amounted to Rs.1431.200 Millions (as compared to profit during the previous year Rs. 898.500 Millions). RTL had commercially launched 3G services on September 15, 2011. During the period upto March 31, 2012, the expenditure related to 3G services has not been commensurate with the revenue stream, which is expected to improve over a period of time.

 

Finance costs marginally reduced, from Rs. 609.400 Millions in the corresponding previous year, to Rs. 602.500 Millions during the year. The Company’s borrowings amounted to Rs.51740.000 Millions (previous year Rs. 40860.000 Millions). The Company’s outstanding, on account of buyers’ credit, term loan etc. from various banks/institutions, increased from Rs. 7940.000 Millions as at the end of the corresponding previous year to Rs. 15350.000 Millions as at March 31, 2012.

 

Depreciation/amortisationcharge for the year amounted to Rs. 3270.000 Millions as compared to Rs. 3180.000 Millions for the corresponding previous year.

 

The Company has, during the year, entered into various contracts in the area of telecommunication business. While benefits from such contracts will accrue in the future years, the Board of Directors shall periodically review their progress.

 

SCHEME OF AMALGAMATION

 

During the previous year, in terms of the Scheme of Amalgamation (“the Scheme”) filed under Sections 391 to 394 of the Companies Act, 1956, and duly sanctioned by Hon’ble High Court of Bombay with Appointed date of April 1, 2010, Reliance Communications Maharashtra Private Limited (RCMPL) (“Transferor Company”), which became a subsidiary of the Company was amalgamated into the Company as per the Scheme. High Court order was filed with Registrar of Companies (ROC) on May 25, 2011. Accordingly, investment of the Company in Equity Share Capital of Rs. 0.100 Million in RCMPL was cancelled and all Assets and Liabilities as appearing in the books of RCMPL were recorded in the books of the Company at their respective book value as at April 1, 2010 and the excess of the Net Assets of Rs. 0.100 Million was charged to Statement of Profit and Loss of the Company.

 

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2012

As on

31.03.2011

SHORT-TERM BORROWINGS

 

 

Loans and Advances from Related Parties

18387.500

14912.400

Loan from Banks

 

 

Foreign Currency Loans- Buyers Credit

766.500

478.200

Rupee Loans

0.000

3000.000

Total

19154.000

18390.600

 

 

CONTINGENT LIABILITIES

Rs. In Millions

Particular

31.03.2012

31.03.2011

Bonds executed in favour of Government authorities

0.000

571.700

Claims against the Company not acknowledged as debts*

1369.100

865.300

 

This represents demand received from Sales Tax / Service Tax / Entry Tax authorities in various States/ Department of Telecommunications, which are pending before the Appellate Authorities / Tribunal / High Court/TDSAT and the stay orders are granted against the demands. The Company is confident that the claims will be successfully contested.

 

The Company has deposited Rs. 299.700 Millions (Previous year Rs. 82.000 Millions) under protest with the Sales tax / Service Tax / Entry Tax authorities/ Department of Telecommunications against the demand. Deposit amount is included in Loans and Advances

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U32100MH1994PLC162841

Name of the company

RELIANCE TELECOM LIMITED

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

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra, India

hitesh.chawda@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

debenturetrustee@axistrustee.com

Nature of instrument creating charge

Deed of Hypothecation dated 26th March, 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. 5000.00 Millions sanctioned by IDBI Bank

Date of instrument Creating the charge

26.03.2013

Amount secured by the charge

Rs.5000.000 Millions

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

Rate of Interest

12.75 % p.a

 

Terms of Repayment

One year

 

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

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

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

 

 

FIXED ASSETS:

 

  • Building
  • Plant and Machinery
  • Equipments
  • 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.54.77

UK Pound

1

Rs.83.31

Euro

1

Rs.70.46

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

46

 

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.