MIRA INFORM REPORT

 

 

Report Date :

06.09.2013

 

IDENTIFICATION DETAILS

 

Name :

LANDMARK LIMITED (PART IX)

 

 

Registered Office :

Trent House, G Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

31.03.2006

 

 

Com. Reg. No.:

11-160918

 

 

Capital Investment / Paid-up Capital :

Rs.73.147 Millions

 

 

CIN No.:

[Company Identification No.]

U70109MH2006PLC160918

 

 

PAN No.:

[Permanent Account No.]

AABCL1748E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in the retail trade of books, music, toys, gaming, etc

 

 

No. of Employees :

Information declined by the 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 260000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of ‘Trent Limited’. It is an established company having moderate track record.

 

There appear some accumulated losses in the, due to the continuous losses incurred by the company during past years. There are huge external borrowings reported in the books during 2013. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

In view of strong parentage and experienced management, 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

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

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 (91-22-67009026) 

 

LOCATIONS

 

Registered Office :

Trent House, G Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India

Tel. No.:

91-22-26396010/67009026/67008063

Fax No.:

91-22-22070216/67008100/67008100

E-Mail :

pameela.paruchuri@trent-tata.com

manish.parikh@trent-tata.com

Website :

http://www.landmarkonthenet.com

 

 

Store :

 

S-37, Second Floor, Phoenix Market City Viman Nagar Road, Viman Nagar, Pune, Maharashtra, India

Tel No.:

91-20-65340011

 

 

Branch Offices :

Locate At:

 

  • Chennai
  • Gurgaon
  • Lucknow
  • Bangalore
  • Mumbai
  • Vadodara
  • Pune
  • Hyderabad
  • Ahmedabad

 

 

DIRECTORS

 

As on 10.08.2012

 

Name :

Aspy Dady Cooper

Designation :

Director

Address :

Quest End -47, Cuffe Parade Colaba, Mumbai – 400005, Maharashtra, India.

Date of Birth/Age :

23.08.1940

Date of Appointment :

31.03.2006

Din No.:

00026134

 

 

Name :

Noel Naval Tata

Designation :

Director

Address :

Windmere 55, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

12.11.1956

Date of Appointment :

31.03.2006

Din No.:

00024713

 

 

Name :

Mr. Pradeep Kumar Anand

Designation :

Director

Address :

303/304, Gulshan, 14th A, Road, Khar (West), Mumbai – 400052, Maharashtra, India.

Date of Birth/Age :

03.05.1953

Date of Appointment :

31.03.2006

Din No.:

00108891

 

 

Name :

Palaniswamy Venkatesalu

Designation :

Director

Address :

Tata Colony, Falcon Crest, Flat # 102, G.D. Ambedkar Marg, Parel Tank Road, Parel, Mumbai-400017, Maharashtra, India

Date of Birth/Age :

27.02.1977

Date of Appointment :

25.06.2008

Din No.:

02190892

 

 

Name :

Mr. Gopal Srinivasan

Designation :

Director

Address :

Old No. 2, New No. 3, West Side House, Adyar Club Gate Road, Chennai-600028, Tamilnadu, India

Date of Birth/Age :

04.08.1958

Date of Appointment :

04.11.2009

Din No.:

00177699

 

 

Name :

Shreeharsha Vasant Phene

Designation :

Director

Address :

901/902, Vaastu, 26, R.G. Thadani Marg, Worli Sea Face, Mumbai – 400030, Maharashtra, India.

Date of Birth/Age :

08.05.1955

Date of Appointment :

31.03.2006

Din No.:

00103297

 

 

Name :

Mr. Philip Noel Auld

Designation :

Director

Address :

Trent House, G-Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India

Date of Birth/Age :

02.09.1956

Date of Appointment :

19.10.2011

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashutosh Pandey

Designation :

Manager

Address :

Fortune, Flat No. 3D, 3rd Floor, No. 15, Harrington Road, Chetpet, Chennai-600031, Tamilnadu, India

Date of Birth/Age :

09.10.1971

Date of Appointment :

14.07.2011

Pan No.:

AGXPP7134K

 

 

Name :

Mr. Manish Parikh

Designation :

Company Secretary

Address :

B-103, Building No. 5, N.G. Park, Rawalpada, Dahisar (East), Mumbai-400068, Maharashtra, India

Date of Birth/Age :

29.07.1976

Date of Appointment :

14.07.2011

Pan No.:

AMQPP5959H

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 10.08.2012

 

Names of Shareholders

 

No. of Shares

Trent Limited, India

 

4192344

Hemaiatha Ramaiah

 

100

Trent Brands Limited, India

 

264028

TVS Shriram Growth Funk I, India

 

1825074

Flora Services Limited, India

 

2500

Flora Link Rod Properties Limited, India

 

2500

Flora Link Rod Properties Limited, India

 

1023079

Flora Services Limited, India

 

11

Flora Link Rod Properties Limited, India

 

13

Flora Services Limited, India Jointly with Noel Naval Tata

 

1

Flora Services Limited, India Jointly with Palaniswamy Venkatesalu

 

1

Trent Limited, India

 

5026

TOTAL

 

7314677

 

As on 10.08.2012

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the retail trade of books, music, toys, gaming, etc

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

  • HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India      

 

  • Standard Chartered Bank, 19, Rajaji Salai, Chennai - 600034, Tamilnadu, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Short-term borrowings

 

 

Term Loans from Banks 

0.000

134.089

Loans repayable on demand

0.000

132.468

Total

0.000

266.557

 

 

 

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

52, Venkatnarayana Road, T. Nagar, Chennai-600017, Tamilnadu, India

Tel. No.:

91-44-66885000

Fax No.:

91-44-66885050

PAN No.:

AACFD3771D

 

 

Holding Company :

Trent Limited

CIN No.:- L24240MH1952PLC008951

 

 

Fellow Subsidiaries :

Trent Brands Limited

CIN No.:- U74899DL1995PLC073520

 

Westland Limited

CIN No.:- U22190TN2007PLC064265

 

Landmark Etail Private Limited

CIN No.:- U72900TN2001PTC046790

 

Trent Hypermarket Limited

CIN No.:- U51900MH2008PLC184184

 

Fiora Services Limited

CIN No.:- U74990PN1989PLC020632

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

8700000

Equity Shares

Rs.10/- each

Rs. 87.000 Millions

1630000

Preference Shares

Rs.100/- each

Rs.163.000 Millions

 

TOTAL

 

Rs.250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

7314677

Equity Shares

Rs.10/- each

Rs.73.147 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

73.147

73.147

73.147

(b) Reserves & Surplus

(7.945)

376.701

689.409

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

65.202

449.848

762.556

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

540.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(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)

540.000

0.000

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

38.381

297.875

202.157

(b) Trade payables

619.485

683.700

673.571

(c) Other current liabilities

107.244

139.923

132.632

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

765.110

1121.498

1008.360

 

 

 

 

TOTAL

1370.312

1571.346

1770.916

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

389.674

438.633

430.457

(ii) Intangible Assets

46.798

49.036

9.843

(iii) Capital work-in-progress

0.000

6.295

2.028

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.520

0.020

0.120

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

58.452

86.304

93.530

(e) Other Non-current assets

0.951

0.888

0.000

Total Non-Current Assets

496.395

581.176

535.978

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

616.855

668.221

835.512

(c) Trade receivables

19.500

31.347

20.315

(d) Cash and cash equivalents

41.141

27.006

20.010

(e) Short-term loans and advances

181.297

193.008

153.078

(f) Other current assets

15.124

70.588

206.023

Total Current Assets

873.917

990.170

1234.938

 

 

 

 

TOTAL

1370.312

1571.346

1770.916

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income               

1981.229

2234.938

2498.756

 

 

Other Income

20.702

1.829

1.475

 

 

TOTAL                                     (A)

2001.931

2236.767

2500.231

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of stock-in-trade

1392.731

1451.975

1892.149

 

 

Employee benefit expense

196.478

231.544

200.350

 

 

Other expenses

729.500

725.093

678.181

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

51.366

167.291

(150.155)

 

 

Exceptional items before tax

(103.616)

(110.984)

(196.581)

 

 

TOTAL                                     (B)

         2266.459

2464.919

2423.944

 

 

 

 

 

Less

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

(264.528)

(228.152)

76.287

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

43.581

15.841

7.999

 

 

 

 

 

 

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

(308.109)

(243.993)

68.288

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

76.537

68.715

57.592

 

 

 

 

 

 

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

(384.646)

(312.708)

10.696

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

2.131

 

 

 

 

 

 

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

(384.646)

(312.708)

8.565

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(355.589)

(22.881)

(31.446)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(740.235)

(335.589)

(22.881)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

48.702

50.714

73.906

 

TOTAL EARNINGS

48.702

50.714

73.906

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Traded Goods

22.210

16.865

27.458

 

 

Stores & Spares

0.000

0.000

6.977

 

TOTAL IMPORTS

22.210

16.865

34.435

 

 

 

 

 

 

Earnings Per Share (Rs.)

(52.59)

(42.75)

1.17

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(19.21)
(13.98)

0.34

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

(19.41)
(13.99)

0.43

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(28.08)
(19.98)

0.60

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(5.90)
0.70

0.01

 

 

 
 

 

Debt Equity Ratio

(Total Debt /Networth)

 

8.87
0.66

0.27

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.14
0.88

1.22

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT: NOT AVAILABLE

 

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

No

 

Note:

The registered office of the company has been shifted from Enterprise Centre, Off Nehrurd, Beside Orchid Hotel, Vile Parle (East), Mumbai, Maharashtra, India to present address w.e.f.01.07.2009

 

FINANCIAL RESULTS

 

The Company is engaged in the retail trade of books, music, toys, gaming, etc. The significant restructuring measures initiated in FY11-12 continued in the period with the following primary objectives:

 

1. Refreshing the relevance of the format to the target audience in terms of the core customer proposition especially given the evolving market landscape for retailers in this space.

 

2. Building a sustainable platform to leverage the brand strength of the Landmark banner to facilitate growth and scale over the medium term.

 

The principle restructuring and refurbishment measures continued to be pursued in the period includes Focus of new growth categories, Redesign of the store look and feel, Growing the internet platform, Re-alignment of the supply chain, Shifting of corporate operations from Chennai to Mumbai and Introduction of Shop-In-Shops in select Westside stores. In order facilitate greater management focus, the online division of the Company has been vested into a wholly owned subsidiary of the Company.

 

The Company recorded a total income of Rs.2001.931 Millions (Rs.2236.766 Millions in FY 2011-12) during the period, whereas the profit before tax was negative at Rs.384.646 Millions (negative Rs.312.708 Millions in FY 2011-12); which also includes a onetime profit on transfer of online division to a wholly owned subsidiary. The Company’s results for the year ending March 2013 need to be viewed in the context of the conscious winding down of certain categories for all practical purposes (like home merchandise – which is not seen to be a relevant fit with the format in its evolving form) and the restructuring initiatives mentioned above-as each of these efforts involve significant disruption of operations (for instance during store re-design/ refurbishment, stabilization of transition to the SAP IT system, migration to a new distribution approach). The following is brief discussion of the other principle factors contributing to the reported performance:

 

1. Continued decline of especially the music category and certain sub-categories of books like computers and programming, cooking, maps and coffee table books. In the music category digital downloads have for the most part become the norm, including through mobile phone platforms;

 

2. Under performance of select mature stores vis-à-vis expectations; the key contributing factors include another competing mall location in the relevant Chennai micro-market;

 

3. Under performance of select large box new stores, as these stores take longer to reach break-even sales volumes; key contributing factors include slow ramp-up of immediate mall occupancy, operational mall maintenance and timely merchandise availability issues;

 

4. On the other hand encouraging off-take of certain new categories of focus like gaming, toys, sports merchandise and select tech-accessories; also, the transfer of online division significantly buffered reported performance. Key observations and intent on approach in respect of the Landmark format:

 

5. As a retail banner Landmark continues to enjoy strong recall and liking amongst a range of audiences and especially with kids and teens; incidentally the format has registered more than 500,000 ‘likes’ on Facebook – the online social networking site;

 

6. Music as a category is de-growing consequent to increasing access of such content through other channels and same is the case with certain sub-categories of books like computers and programming and cooking; in this context Landmark has been consciously introducing newer categories like gaming, technology accessories and sports merchandise. Also, it is relevant to observe that Landmark already derives its income from a wide mix of categories and is consequently less exposed to the risk of systemic de-growth in one of the categories like music.

 

7. Structural changes continue to be pursued to reconfigure the stores around the new anchor categories - toys, gaming, front-list books and tech-accessories; the response in the stores where this reconfiguration has been completed have witnessed an encouraging response from customers and they believe this effort would be key to establishing a sustainable growth platform for this business.

 

 

SCHEME OF AMALGAMATION AND ARRANGEMENT

 

The Board of Directors of the Company at its meeting held on 4th March 2013 has approved the merger of Landmark Limited with Trent Limited (holding company) in terms of the Scheme of Amalgamation and Arrangement between Landmark Limited, Fiora Link Road Properties Limited, Trexa ADMC Private Limited and Trent Limited and their respective shareholders and creditors. The appointed date for the merger shall be 1st April 2013. As the Company is a wholly owned subsidiary of Trent Limited, no shares of Trent Limited will be issued and allotted pursuant to the proposed Scheme.

 

 

The Scheme is approved by the Board of Directors subject to the requisite approval of the members and/ or creditors as may be directed by the High Court of Judicature at Bombay and subject to all such requisite approvals from the relevant regulatory authorities and sanction of the High Court of Judicature at Bombay.

 

 

UNSECURED LOAN

Rs. In Millions

 

As on

31.03.2013

As on

31.03.2012

Long Term Borrowings

 

 

Loans and advances from related parties

540.000

0.000

ShortTerm Borrowings

 

 

Other Loans and Advances

38.381

31.318

TOTAL

578.381

31.318

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10123036

02/08/2008

200,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA

A45907193

2

10052735

16/04/2007

191,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA

A15667512

3

10022189

08/09/2006

80,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA

A05624945

4

10008058

21/02/2013 *

150,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA

B70824859

 

* Date of charge modification

 

 

FIXED ASSETS

 

  • Goodwill
  • Freehold Land
  • Buildings
  • Leasehold Improvements
  • Furniture And Fixtures
  • Plant And Machinery
  • Computers
  • Office Equipment
  • 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.66.04

UK Pound

1

Rs.103.11

Euro

1

Rs.86.99

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

NTH

 


 

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

4

--LEVERAGE

1~10

4

--RESERVES

1~10

5

--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

YES

--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

 

 

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.