MIRA INFORM REPORT

 

 

Report Date :

22.10.2013

 

IDENTIFICATION DETAILS

 

Name :

GNET TRADELINKS PRIVATE LIMITED

 

 

Registered Office :

R-724, T.T.C. Industrial Area, M.I.D.C., Rabale, Navi Mumbai – 400 701, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

21.06.2000

 

 

Com. Reg. No.:

11-127297

 

 

Capital Investment / Paid-up Capital :

Rs.6.392 millions

 

 

CIN No.:

[Company Identification No.]

U51900MH2000PTC127297

 

 

IEC No.:

0300028750

 

 

PAN No.:

[Permanent Account No.]

AABCG2249M

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of trading multiple products mainly comprising Polymers Granules, Medium Density Fibre (MDF) Board, Decorative Boards, etc.

 

 

No. of Employees :

Information declined by the Management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 245000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

The ratings take into consideration, the subject’s weak profitability indicators due to fluctuation in foreign exchange rates and a leveraged capital structure during 2013.

 

However, trade relations are fair. Business is active. Payment terms are reported as slow but correct.

 

In view of promoter’s extensive experience and long standing relationships with its diversified customer base, 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.

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long Term Fund Based Limits: BB-

Rating Explanation

Moderate risk of default.

Date

June, 2013

 

 

Rating Agency Name

ICRA

Rating

Short Term Non Fund Based Limits: A4

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

June, 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

(Tel. No.: 91-22-27693527)

 

LOCATIONS

 

 

Registered Office/ Warehouse 1 :

R-724, T.T.C. Industrial Area, M.I.D.C., Rabale, Navi Mumbai – 400 701, Maharashtra, India

Tel. No.:

91-22-27693527/ 64557391 to 99

Fax No.:

91-22-27693528

E-Mail :

sales@gnettradelinks.com        

info@gnettradelinks.com

Website :

http://www.gnettradelinks.com

Area :

4100 sq. mtr.

Location :

Rented

 

 

Warehouse 2 :

Daga Estate, Block No.1600/B, Survey No.1031, 1036, 1037, Opposite Pandiya H. School, Near Tulsi Hotel, Jaitalpur, Ahmedabad – 382 427, Gujarat, India

 

 

Warehouse 3 :

3/45A, G.N.Y Road, Panjetty Village, Near Thachur Cross Road, Ponneri Taluka, Thiruvallur District – 601 204, Tamilnadu, India

 

 

Warehouse 4 :

2315/32, Rajiv Nagar, Opposite Payal Cinema, Kataria Chowk, Gurgaon – 122 001, Haryana, India

 

 

DIRECTORS

 

AS ON 27.07.2013

 

Name :

Mr. Manoj Haricharan Sharma

Designation :

Director

Address :

104, Bluebell Vasant Valley Complex, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Date of Birth/Age :

26.01.1961

Qualification :

MBA

Date of Appointment :

26.06.2000

DIN No.:

00041703

 

 

Name :

Mr. Krishan Gopal Babu Lal Modi

Designation :

Director

Address :

B-503, Bhaktianugam Society, Kopar Khairane, Navi Mumbai – 400 709, Maharashtra, India

Date of Birth/Age :

18.03.1967

Qualification :

B. Com

Date of Appointment :

29.05.2009

DIN No.:

02662829

 

 

Name :

Mr. Satish Bindumadhav Kulkarni

Designation :

Director

Address :

Flat No.6, 1st Floor, Hari Ashish CHS, Dombivali (East), Thane – 421 204, Maharashtra, India 

Date of Birth/Age :

23.11.1955

Date of Appointment :

12.04.2011

DIN No.:

03502865

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 27.07.2013

 

Names of Shareholders

 

 

No. of Shares

Manoj Sharma

 

18

Dinesh P. Hindocha

 

290680

Jaydeep Sethia

 

98500

Sandeep Patwari

 

1

Gnet Impex Private Limited

 

250000

Ravindrsing Jain

 

1

Total

 

639200

 

AS ON 27.07.2013

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

61.00

Bodies corporate

 

39.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of trading multiple products mainly comprising Polymers Granules, Medium Density Fibre (MDF) Board, Decorative Boards, etc.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the Management.

 

 

Bankers :

  • Canara Bank, Overseas Main Branch, Mumbai – 400 021, Maharashtra, India
  • HDFC Bank Limited
  • IDBI Bank Limited
  • State Bank of India, Overseas Branch

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

From Bank

 

 

Foreign Currency Loan – Buyers Credit from Canara Bank

(Secured against first charge over Current Assets of the company and personal guarantee of the Directors) 

NA

56.346

Cash Credit from Canara Bank

(Secured against Inventory and Book Debts and Personal Guarantee of the Directors)

NA

5.704

Total

NA

62.050

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Vijay Rungta and Company

Chartered Accountants

Address :

4/88, Nityanand Nagar, S.N. Marg, Opposite Railway Station, Andheri (East), Mumbai – 400 069, Maharashtra, India

Tel. No.:

91-22-26836687

PAN No.:

AAAFV0164A

 

 

Related Parties (As on 31.03.2012) :

Gnet Impex Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 27.07.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

750000

Equity Shares

Rs.10/- each

Rs.7.500 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

639200

Equity Shares

Rs.10/- each

Rs.6.392 millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1) Shareholders' Funds

 

 

 

(a) Share Capital

6.392

3.892

3.892

(b) Reserves & Surplus

54.925

32.322

27.510

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

17.500

0.000

Total Shareholders’ Funds (1) + (2)

61.317

53.714

31.402

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

0.968

0.000

0.099

(b) Deferred tax liabilities (Net)

0.000

0.000

0.006

(c) Other long term liabilities

0.000

0.000

0.000

(d) Long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

0.968

0.000

0.105

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

118.341

80.781

183.739

(b) Trade payables

139.358

67.604

29.310

(c) Other current liabilities

31.822

10.444

11.620

(d) Short-term provisions

0.083

0.011

4.115

Total Current Liabilities (4)

289.604

158.840

228.784

 

 

 

 

TOTAL

351.889

212.554

260.291

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3.464

2.521

2.610

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.020

0.020

0.020

(c) Deferred tax assets (net)

0.151

0.018

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

3.635

2.559

2.630

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

10.000

(b) Inventories

159.346

95.642

123.198

(c) Trade receivables

134.283

80.043

75.227

(d) Cash and cash equivalents

21.586

16.023

21.713

(e) Short-term loans and advances

32.249

18.097

26.584

(f) Other current assets

0.790

0.190

0.939

Total Current Assets

348.254

209.995

257.661

 

 

 

 

TOTAL

351.889

212.554

260.291

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from Operations

NA

528.972

528.084

 

 

Other Income

NA

2.706

7.748

 

 

TOTAL                                     (A)

NA

531.678

535.832

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock-in-Trade

NA

387.188

484.312

 

 

Changes in Inventories

NA

27.556

(86.169)

 

 

Employees Benefits Expenses

NA

9.090

9.104

 

 

Other Expenses

NA

88.150

108.267

 

 

TOTAL                                     (B)

NA

511.984

515.514

 

 

 

 

 

Less

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

NA

19.694

20.318

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

NA

12.246

13.935

 

 

 

 

 

 

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

NA

7.448

6.383

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

NA

0.623

0.559

 

 

 

 

 

 

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

11.375

6.825

5.824

 

 

 

 

 

Less

TAX                                                                  (H)

3.772

2.013

1.793

 

 

 

 

 

 

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

7.603

4.812

4.031

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

16.550

11.738

7.707

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

24.153

16.550

11.738

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

11.89

12.47

10.29

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

NA

0.91

0.75

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

1.29

1.10

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.23

3.21

2.24

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.19

0.13

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.95

1.50

5.85

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.20

1.32

1.13

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Current Maturities:

 

Particulars

 

31.03.2013

(Rs. in millions)

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

Current Maturities of Motor Car Loan from HDFC Bank

NA

NA

2.977

 

 

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

Yes

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 two 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

 


 

Unsecured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Loan from Related Parties – Payable on Demand

 

 

Gnet Impex Private Limited

NA

3.227

Payable on Demand

 

 

Ravindra Jain

NA

15.504

Total

NA

18.731

 

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10075880

21/02/2011 *

250,000,000.00

CANARA BANK

OVERSEAS MAIN BRANCH, MUMBAI, MUMBAI, MAHARASHTRA
- 400021, INDIA

B09630633

 

 

* Date of charge modification

 

FIXED ASSETS:

 

·         Electronic Weighing Machine OE

·         Mobile and Telephone OE

·         Office Equipment OE

·         Refrigerator OE

·         Testing Machine OE

·         UPS OE

·         Washing Machine OE

·         Weighing Scale OE

·         Computer

·         Generator

·         Air Conditioner

·         Leasehold Development

·         Portable Fire Extinguisher

·         Motor Car


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.61.49

UK Pound

1

Rs.99.41

Euro

1

Rs.84.12

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

SMN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--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

DEFAULTERS

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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.