MIRA INFORM REPORT

 

 

Report Date :

18.11.2013

 

IDENTIFICATION DETAILS

 

Name :

BROOKS BROTHERS INDIA PRIVATE LIMITED (w.e.f. 28.05.2013)

 

 

Formerly Known As :

VOGUE BRAND SOLUTIONS PRIVATE LIMITED

 

 

Registered Office :

8th Floor, Maker Tower 'E', Cuffe Parade, Mumbai – 400005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.02.2012

 

 

Com. Reg. No.:

11-227437

 

 

Capital Investment / Paid-up Capital :

Rs. 216.000 Millions

 

 

CIN No.:

[Company Identification No.]

U74900MH2012PTC227437

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMI10579C

 

 

PAN No.:

[Permanent Account No.]

AACCI9235J

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

To carry on the business of protecting, exploiting and managing its brands and other property (licensed and owned) relating to products in the fashion, home and related categories and across all channels withing India.

 

 

No. of Employees :

Information declined by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 740000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a relatively new company incorporated as on February 27, 2012, having a moderate track record. It a part of “Brooks Brothers Group Inc”.

 

The company has recorded some accumulated losses during 2013. However, there appear no external borrowings as the management is operating on their own funds.

 

The ratings also take into consideration the prevailing goodwill of the company as a “brand” in the American ready to wear apparel market.

 

Trade relations are fair. Business is active as per the status shown in the maintained with the registrar of companies. Payment terms are unknown.

 

In view of long standing experience of the promoters, the subject can be considered for business dealings with some caution.

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

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 

 

 

LOCATIONS

 

Registered Office :

8th Floor, Maker Tower 'E', Cuffe Parade, Mumbai – 400005, Maharashtra, India

Tel. No. :

91-22-40613000

Fax No. :

Not Available

E-Mail :

hetal.mehta@ril.com

amishagandhi@ril.com

rrplanet.td@zmail.com

 

 

DIRECTORS

 

As on 20.06.2013

 

Name :

Kiran Mathew Thomas

Designation :

Director

Address :

77-A, Nandanvan CHS, Sec-17, Nerul, Navi Mumbai – 400706, Maharashtra India 

Date of Birth/Age :

12.09.1972

Date of Appointment :

20.06.2013

DIN No. :

02242745

 

 

Name :

Darshan Rasiklal Mehta

Designation :

Director

Address :

32, Mayflower Carmichael Road, Mumbai – 400026, Maharashtra, India 

Date of Birth/Age :

31.07.1961

Date of Appointment :

27.02.2012

DIN No. :

00103155

 

 

Name :

Paulette Garafalo

Designation :

Director

Address :

315 E 72, ST 9B, New York 10021

Date of Birth/Age :

16.07.1956

Date of Appointment :

20.06.2013

DIN No. :

06428580

 

 

Name :

Andy S Lew

Designation :

Director

Address :

Flat 27 J, 33, Tai Tam Road, The Manhattan

Date of Birth/Age :

21.10.1970

Date of Appointment :

20.06.2013

DIN No. :

06428568

 

 

Name :

Claudio Del Vecchio

Designation :

Director

Address :

393 Mill River Road, Oyster Bay, New York 11771

Date of Birth/Age :

26.02.1957

Date of Appointment :

20.06.2013

 

 

KEY EXECUTIVES

 

Name :

Prasanta Kumar Sahoo

Designation :

Secretary

Address :

D-604, Safal Parisar II, South Bopal, Ahmedabad – 380058, Gujarat, India

Date of Birth/Age :

04.05.1966

Date of Appointment :

21.01.2013

PAN No.:

AFFPS2684L

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 20.06.2013

 

Names of Shareholders

 

No. of Shares

 

Reliance Brands Limited, India

 

10584000

BBDI LLC, United States of America

 

11016000

Total

 

21600000

 

As on 20.06.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

51.00

Bodies corporate

49.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

To carry on the business of protecting, exploiting and managing its brands and other property (licensed and owned) relating to products in the fashion, home and related categories and across all channels withing India.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management

 

 

Bankers :

Not Divulged

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

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

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

AAAFC0662N

 

 

Holding company / Joint venture partner :

BBDI LLC, United States (from 20-12-2012)

 

 

Joint venture partner

Reliance Brands Limited (from 20-12-2012)

U51900MH2007PLC174470

 

 

Holding company of BBDI LLC:

Brooks Brothers Group Inc. (from 20-12-2012)

 

 

 

Subsidiary of Brooks Brothers Group Inc.:

·         Golden Fleece Manufacturing Group, LLC (Division – Brooks Brothers Tie Factory) (from 20-12-2012)

 

·         Brook Brothers Retail Brand Alliance Europe SRL (from 20-12-2012)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25,000,000

Equity Shares

Rs.10/- each

Rs. 250.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

21,600,000

Equity Shares

Rs.10/- each

Rs. 216.000 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2013

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

216.000

(b) Reserves & Surplus

 

 

(31.751)

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

Total Shareholders’ Funds (1) + (2)

 

 

184.249

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

 

0.000

(b) Deferred tax liabilities (Net)

 

 

0.000

(c) Other long term liabilities

 

 

0.000

(d) long-term provisions

 

 

0.069

Total Non-current Liabilities (3)

 

 

0.069

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

0.000

(b) Trade payables

 

 

9.884

(c) Other current liabilities

 

 

7.481

(d) Short-term provisions

 

 

0.001

Total Current Liabilities (4)

 

 

17.366

 

 

 

 

TOTAL

 

 

201.685

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

9.239

(ii) Intangible Assets

 

 

0.000

0.(iii) Capital work-in-progress

 

 

16.554

(iv) Intangible assets under development

 

 

0.000

(b) Non-current Investments

 

 

0.000

(c) Deferred tax assets (net)

 

 

0.000

(d)  Long-term Loan and Advances

 

 

54.126

(e) Other Non-current assets

 

 

0.000

Total Non-Current Assets

 

 

79.919

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

97.790

(b) Inventories

 

 

17.320

(c) Trade receivables

 

 

0.288

(d) Cash and cash equivalents

 

 

2.051

(e) Short-term loans and advances

 

 

4.317

(f) Other current assets

 

 

0.000

Total Current Assets

 

 

121.766

 

 

 

 

TOTAL

 

 

201.685

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2013

 

SALES

 

 

 

 

 

TOTAL                                    

 

 

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

 

 

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX 

 

 

NA

 

 

 

 

 

Less

TAX                                                                 

 

 

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

 

 

(31.751)

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

 

(6.65)

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2013

 

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

 

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

7.01

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBTS

 

Particulars

 

 

31.03.2013

(Rs. In Millions)

 

 

 

 

Current maturities of finance lease obligations

 

 

0.000

 

 

 

 

 

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

No

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 one year

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

No

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

No

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

OPERATIONAL REVIEW:

 

Brooks Brothers Group, Inc is America’s oldest clothing retailer, an American Icon, an institution that has redefined and shaped classic American style for nearly two centuries.

 

During the year the Company entered into a Joint Venture Agreement with BBDI, LLC, subsidiary of Brooks Brothers Group, Inc and Reliance Brands Limited for sale of products under the proprietary marks under the Joint Venture Agreement and opened two Brooks Brothers stores in Delhi and Gurgaon.

 

 

CHANGE OF NAME:

 

After the close of the year, the name of the Company was changed from In Vogue Brand Solutions Private Limited to Brooks Brothers India Private Limited.

 

 

FIXED ASSETS

 

·         Plant and equipment

·         Furniture and fixtures

·         Office equipment

·         Other equipments

·         Leasehold improvements

 

 

PRESS RELEASE

 

BROOKS BROTHERS LAUNCHES IN INDIA

 

January 30, 2013

NEW DELHI — Less than three months after it received approval from the Indiangovernment for foreign direct investment in single-brand retail, Brooks Brothers has opened the doors to its first store in Vasant Kunj, New Delhi.


More stores are in the works, with another five expected to open before the end of the year, Darshan Mehta, president and chief executive officer of Reliance Brands, Brooks Brothers’ joint-venture partner in India, told WWD.


The initial investment is 60.2 million rupees, or $1.1 million at current exchange, according to FIPD documents.


The second Brooks Brothers store will open in Gurgaon, which neighbors New Delhi, this week, followed by stores in malls in Chandigarh in North India and Chennai in South India. The stores in the Southern cities of Bangalore and Hyderabad will be freestanding instead of within malls.


Mehta said that while the average size of the Brooks Brothers stores in India would be 2,000 square feet, the unit in Chandigarh will be 3,800 square feet.


Mehta, who was joined at the opening by Paulette Garafalo, president of international, wholesale and manufacturing at Brooks Brothers, said the joint-venture team will operate all of the Indian units. “We will open only company-owned and company-operated stores, not franchises,” Mehta said.


India is part of Brooks Brothers’ global expansion plan. The company opened its first store in Indonesia in December, and there are now 79 stores across China, Hong Kong, Taiwan, Malaysia and Singapore, with sales in China growing at more than 30 percent a year for the past few years, according to the executives.


“Even seven to eight years ago we were very underdeveloped globally,” said Garafalo. “We really focused on being a domestic retailer with the exception of Japan, where we have been for 33 years. But in the last 10 years, we’ve gone all-out to assess our global opportunities and find the right partners. We’re a privately held company and we do everything long term.”


Brooks Brothers in India will price its products at approximately 10 to 12 percent higher than those in the U.S., with dress shirts starting from 5,000 rupees, or $93.22, and will offer only men’s wear at the present time. “We’re focusing on the men’s market, which is quite substantial,” Mehta said, but once the stores are established, other product categories will be added.


Although the battle for the men’s market in India is heating up — Thomas Pink recently opened its first store this year also in association with Reliance Brands — Garafalo sees it as a growth opportunity.


“We see this as a tremendous opportunity and we are very focused on making it work in India. There is a larger brand recognition for Brooks Brothers in India than in many other Asian countries,” she said.


“We do not come to India with fear — we believe India is our future. We believe that the Indian consumer wants authenticity and we bring American authenticity. We are the purveyors of the white shirt and chinos, and we believe the Indian man is going to receive us very well.”


Brooks Brothers, which has dressed presidents and celebrities in the U.S., is also the partner of choice for men’s wear in the soon-to-be-released new version of “The Great Gatsby” starringLeonardo DiCaprio.

 

 

INDIA CLEARS ENTRY OF US RETAILER BROOKS BROTHERS

 

21 October 2012

NEW DELHI - India's foreign investment regulator on Friday cleared an application from US luxury-clothing retailer Brooks Brothers to set up stores for the first time in the booming South Asian market.

 

Brooks Brothers, the oldest US clothing retailer, announced in June a plan to set up a joint-venture with Reliance Brands, an arm of Reliance Industries controlled by India's wealthiest man Mukesh Ambani.

 

India's Foreign Investment Promotion Board announced in a statement it had cleared the application of the US high-end apparel retailer which introduced the first ready-to-wear suits in 1845.

 

Brooks Brothers is one of a clutch of foreign companies entering the $500-billion Indian retail market after moves by the government to open its doors wider to overseas investment.

 

There was no immediate comment from the company which has long links with India as it was the first US brand to bring chequered madras fabric from India to the United States in the 1920s.

 

The foreign investment board also cleared plans from Italian jewellery brand Damiani and British-based footwear retailer Pavers for investment in single-brand retail.

 

Clearance of the Brooks Brothers' application came as the world's largest coffee retailer Starbucks opened its first coffee outlet in the country in financial hub Mumbai.

 

BROOKS BROTHERS AND RELIANCE BRANDS LIMITED ANNOUNCE THE FORMATION OF A NEW JOINT VENTURE IN INDIA

 

MUMBAI, India, June 5, 2012  -- Brooks Brothers Group, Inc. and Reliance Brands Limited, a part of the Reliance Industries Group, announced today the formation of a joint venture company in India. 

 

Brooks Brothers is an American icon, an institution that has redefined and shaped classic American style for nearly two centuries, making it the country's oldest clothing retailer and the clothier of choice for nearly every US President as well as leaders in the worlds of business, the arts, finance and politics. Since introducing the first ready-to-wear suits in 1845, just ahead of the great Gold Rush, the company has continued this tradition of fashion innovation, excellent workmanship, personal service and exceptional value. In addition to their iconic dress shirts and suits, Brooks Brothers carries all apparel and accessory categories for men, women and children as well as a home line and a designer collection called Black Fleece by Brooks Brothers, designed by Thom Browne.

 

Mr. Claudio Del Vecchio, Chairman and CEO of Brooks Brothers, has said of the collaboration, "We have partnered with Reliance Brands Ltd. because of their passion for the Brooks Brothers brand, their track record with other premium brands, and their expertise and connections within India. We are incredibly fortunate to have them as partner as we enter this important retail market."

 

The Brooks Brothers flagship store is located at 346 Madison Avenue, New York City, a location it has held for almost a hundred years. As of 2011, Brooks Brothers is available at 210 locations in the United States and 200 in other countries, including Korea, Japan, China, Taiwan, Singapore, France, the United Kingdom, Chile, Canada, Italy, Mexico, and Greece. With the immense growth that has taken place in premium fashion retail combined with a heightened sartorial aesthetic of an aspirational Indian consumer, the Indian market is a natural next stop in the global expansion plans for Brooks Brothers.

 

Commenting on the partnership, Mr. Darshan Mehta, President and CEO, Reliance Brands Ltd. said, "By all accounts, Brooks Brothers is an immensely distinguished heritage brand that is forever woven into the history of American clothing. Today, it is a recognized name throughout the world and with its early hallmark of fine tailoring combined with contemporary appeal, it has much to offer consumers in India, many of whom have already been firm loyalists of the brand for years. In fact, Brooks Brothers has long roots with India and it is, in a way, a coming of full circle as it was the first American brand to bring madras from India to America back in the 1920s, re-defining casual wear of the time, and today, we bring Brooks Brothers to India."

 

Through this new joint venture, Brooks Brothers' products will be available in major cities across India through exclusive mono-brand stores which will carry the entire range of menswear and women's wear including clothing, sportswear, and accessories.

 

About Brooks Brothers


As America's oldest retailer, Brooks Brothers has long been a fashion innovator. Established in 1818, Brooks Brothers was the first to offer ready-to-wear clothing and has continued throughout history with iconic product introductions including: seersucker, madras, the non-iron shirt and the original button-down collar. Nearly two centuries later, Brooks Brothers is proud to uphold the same traditions and values and to be the destination for ladies and gentlemen from every generation. Since its founding 194 years ago in New York, Brooks Brothers has become a legendary international retailer while maintaining a steadfast commitment to exceptional service, quality, style and value. www.brooksbrothers.com

 

About Reliance Brands Limited


Reliance Brands Limited is part of the Reliance Industries Group. The company began operations in October 2007 with a mandate to launch and build international and domestic brand equity in the premium to luxury segment across apparel, footwear and lifestyle businesses. Its current portfolio of brand partnerships comprises of DIESEL, ERMENEGILDO ZEGNA, HAMLEYS, KENNETH COLE, PAUL&SHARK, QUIKSILVER, ROXY, STEVE MADDEN,THOMAS PINK, TIMBERLAND and over 25 brands that comprise the Iconix Brand Group, Inc.

 

About Reliance Industries Limited


Reliance industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of Rs. 3397920.000 Millions ($ 66.8 billion), net profit of Rs. 200400.000 Millions ($3.9 billion) and net worth of Rs. 1660960.000 Millions (US$ 33.21 billion) as of March 31, 2012.RIL is the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 119th amongst the world's Top 200 companies in terms of profits. RIL ranks 68th in the Financial 'Times FT Global 500' list of the world's largest companies. RIL is ranked amongst the '50 Most Innovative Companies - 2010' in the World in a survey conducted by the US financial publication Business Week in collaboration with the Boston Consulting Group (BCG). In 2010, BCG also ranked RIL as the second highest 'Sustainable Value Creators' for creating the most shareholder value over the decade in the world.

 

 

 

 

 

 

 

 


 

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.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Information Gathered by :

JML

 

 

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

3

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

32

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.