MIRA INFORM REPORT

 

 

Report Date :

13.01.2014

 

IDENTIFICATION DETAILS

 

Name :

DRIVE INDIA ENTERPRISE SOLUTIONS LIMITED (w.e.f. 30.03.2007)

 

 

Formerly Known As :

DRIVEINDIACOM LIMITED

 

 

Registered Office :

7th Floor, Kamla Executive Park, Andheri (East), Mumbai - 400059, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.04.2000

 

 

Com. Reg. No.:

11-126195

 

 

Capital Investment / Paid-up Capital :

Rs. 51.204 Millions

 

 

CIN No.:

[Company Identification No.]

U72900MH2000PLC126195

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMD12064D

 

 

PAN No.:

[Permanent Account No.]

AABCD5823E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

·         Trading in handsets and telecom accessories.

·         Providing Logistics services

 

 

No. of Employees :

Information declined by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 830000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a “Tata Group Company”.

 

The company is owned by “Tata International Limited” (50%) and “Tata Industries Limited” (50%). It is an established company having satisfactory track record.

 

There appears sharp dip sales turnover of the company and it has incurred losses from its operational activities during the 2013. External borrowings appear to be huge.

 

However the ratings take into consideration the strong financial and management support from subject group company i.e “Tata Group”.

 

Trade relations are fair. Business is active. Payment terms are reported as usually correct.

 

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

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities: “A+ (SO)”

Rating Explanation

Adequate degree of safety and low credit risk.

Date

29.04.2013

 

Rating Agency Name

CARE

Rating

Long term bank facilities: “BBB+”

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

29.04.2013

 

Rating Agency Name

CARE

Rating

Short term bank facilities: “A3+”

Rating Explanation

Moderate degree of safety and high credit risk.

Date

29.04.2013

 

 

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 BY

 

Management non-cooperative

Tel. No.: 91-22-67779000

 

 

LOCATIONS

 

Registered/ Corporate Office :

7th Floor, Kamla Executive Park, Andheri (East), Mumbai - 400059, Maharashtra

Tel. No.:

91-22-67779000

Fax No.:

91-22-67779001/ 9002

E-Mail :

antrthony.dsouza@driveindia.co.in

info@diesl.in

contact.us@driveindia.co.in

vishal.shah@driveindia.co.in

mg.subramaniam@driveindia.co.in

Website :

http://www.diesl.in

 

 

DIRECTORS

 

As on: 25.07.2013

 

Name :

Mr. Rameshwar Singh Thakur

Designation :

Additional Director

Address :

Flat No.205, Burlington, Hiranandani Estate, Patlipada, Thane (West), Mumbai-400607, Maharashtra, India

Date of Birth/Age :

06.09.1948

Qualifications:

Bachelors Degree in Mechanical Engineering , Masters Degree in Business Management from XLRI and Chartered Management Accountant from CIMA, London

Date of Appointment :

30.09.2010

DIN No.:

00020126

 

 

Name :

Mr. Noel Naval Tata

Designation :

Additional Director

Address :

Windmere Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

12.11.1956

Qualifications:

B.A.(in Economics from sussex university, London)

Date of Appointment :

01.11.2010

DIN No.:

00024713

 

 

Name :

Mr. Ajay Murlidhar Ponkshe

Designation :

Director

Address :

Flat No.3 1st Floor, Yashodhan, Sahayog Mandir Path, Naupada Thane – 400 601, Maharashtra, India

Date of Birth/Age :

27.02.1960

Qualifications:

B.COM., ACA, ACS

Date of Appointment :

16.07.2007

DIN No.:

01663073

 

 

Name :

Mr. Kanwar Rameshwar Singh Jamwal

Designation :

Additional Director

Address :

73-A, Maker Towers, Chsl, Cuffe Parade, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

11.10.1965

Qualifications:

BE in Technology in petroleum, PG in management

Date of Appointment :

30.09.2010

DIN No.:

03129908

 

 

Name :

Mr. Milind Madhav Shahane

Designation :

Executive Director and Chief Executive Officer

Address :

C-22, Swapnaship Apartments, 52, Mahant Road, Vile Parle, (East), Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

10.01.1963

Qualifications:

B T E C H , MS(CHEMICAL)IIT-MUMBAI,MBA IIM(AHMEDABAD)

Date of Appointment :

26.09.2012

PAN No.:

AAEPP6047Q

DIN No.:

03291774

 

 

KEY EXECUTIVES

 

Name :

Mr. Vishal Shah

Designation :

Secretary

Address :

A-604, Poonam Enclave, Opposite Wagheshwari Temple, Film City Road, Malad (East), Mumbai – 400097, Maharashtra, India

Date of Birth/Age :

02.05.1976

Date of Appointment :

01.04.2013

PAN No.:

ANZPS0103N

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 25.07.2013

 

Names of Shareholders

 

No. of Shares

Tata Industries Limited, India

 

2560144

Tata Industries Limited, India Jointly With N. J. Driver

 

10

Tata Industries Limited, India Jointly With K K Bhatt

 

10

Tata Industries Limited, India Jointly With Dhirendrasingh Kushwah

 

10

Tata Industries Limited, India Jointly With Mr. S. Sriram

 

10

Tata Industries Limited, India Jointly With Deepika Bhagwagar

 

10

Tata International Limited, India

 

2560206

 

 

 

Total

 

5120400

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 25.07.2013

 

Category

 

Percentage

 

 

 

Bodies corporate

 

100.00

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

·         Trading in handsets and telecom accessories.

·         Providing Logistics services

 

 

Products :

Item Code No.

Product Description

85171210

 telephone handsets

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management

 

 

Bankers :

·         Australia and New Zealand Banking Group Limited, Cynergy, A-1 Ground floor and A-6th Floor, Appa Saheb Marathe Marg, Prabhadevi, Mumbai - 400025, Maharashtra, India

·         Axis Bank Limited, Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Short term borrowings

 

 

Working capital loans from banks

2413.203

3329.715

 

 

 

Total

2413.203

3329.715

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Tower 3, 27th To 32nd Floor, Indiabulls Finance Center, Elphinstone Mill Compound, Senapati Bapat Marg, India

PAN No.:

AACFD4815A

 

 

Holding company:

·         Tata International Limited, India

CIN: U51900MH1962PLC012528

 

 

Ultimate Holding company:

·         Tata Sons Limited, India

CIN: U99999MH1917PLC000478

 

 

Associate:

·         Tata Industries Limited, India

CIN: U44003MH1945PLC004403

 

 

Fellow Subsidiary company:

·         Tata Consultancy Services Limited, India

CIN: L22210MH1995PLC084781

·         Tata Sky Limited, India

CIN: U92120MH2001PLC130365

·         Tata Teleservices Limited, India

CIN: U74899DL1995PLC066685

·         Tata Teleservices(Maharashtra) Limited, India

CIN: L64200MH1995PLC086354

·         Tata Petrodyne Limited, India

CIN: U11100MH1993PLC134095

·         Tata Autocomp Systems Limited, India

CIN: U34100MH1995PLC093733

·         Tata Autocomp Systems Limited

CIN: U34100MH1995PLC093733

·         VIOM Networks Limited, India

CIN: U72200DL2004PLC228400

·         Tata Advanced Materials Limited, India

CIN: U85110KA1989PLC013224

·         Tata Lockheed Martin Aerostructures Limited, India

CIN: U29268AP2010PLC077940

·         Infiniti Retail Limited, India

CIN: U31900MH2005PLC158120

·         Tata Aig General Insurance Company Limited

CIN: U85110MH2000PLC128425

 

 

CAPITAL STRUCTURE

 

As on: 25.07.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs. 500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5120400

Equity Shares

Rs.10/- each

Rs. 51.204 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

51.204

51.204

8.534

(b) Reserves & Surplus

158.063

543.322

697.354

(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)

209.267

594.526

705.888

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

5.960

(c) Other long term liabilities

2.329

2.474

3.261

(d) long-term provisions

16.846

24.446

19.127

Total Non-current Liabilities (3)

19.175

26.920

28.348

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2413.203

3329.715

1477.653

(b) Trade payables

937.153

2445.630

2345.655

(c) Other current liabilities

215.555

365.601

257.968

(d) Short-term provisions

3.644

5.935

44.739

Total Current Liabilities (4)

3569.555

6146.881

4126.015

 

 

 

 

TOTAL

3797.997

6768.327

4860.251

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

453.030

469.748

451.632

(ii) Intangible Assets

89.549

83.728

57.202

(iii) Capital work-in-progress

0.000

24.709

0.000

(iv) Intangible assets under development

0.000

0.000

70.609

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

22.090

0.000

(d)  Long-term Loan and Advances

378.990

312.519

300.538

(e) Other Non-current assets

215.789

323.873

0.049

Total Non-Current Assets

1137.358

1236.667

880.030

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

1.925

0.000

0.000

(b) Inventories

1006.864

2076.099

1998.249

(c) Trade receivables

1162.518

1674.431

1378.835

(d) Cash and cash equivalents

132.018

950.926

289.662

(e) Short-term loans and advances

247.591

260.332

278.387

(f) Other current assets

109.723

569.872

35.088

Total Current Assets

2660.639

5531.660

3980.221

 

 

 

 

TOTAL

3797.997

6768.327

4860.251

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

7723.712

13318.222

10447.891

 

 

Other Income

93.022

60.705

123.615

 

 

TOTAL                                     (A)

7816.734

13378.927

10571.506

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of stock-in-trade

3797.995

9852.631

7146.614

 

 

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

1069.235

(77.850)

46.510

 

 

Employee benefit expense

312.641

393.046

331.891

 

 

Other expenses

2744.601

3000.117

2660.233

 

 

Exceptional items

120.000

120.000

0.000

 

 

TOTAL                                     (B)

8044.472

13287.944

10185.248

 

 

 

 

 

Less

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

(227.738)

90.983

386.258

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

41.656

93.348

96.370

 

 

 

 

 

 

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

(269.394)

(2.365)

289.888

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

93.775

111.310

73.205

 

 

 

 

 

 

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

(363.169)

(113.675)

216.683

 

 

 

 

 

Less

TAX                                                                  (H)

22.090

(2.313)

332.982

 

 

 

 

 

 

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

(385.259)

(111.362)

(116.299)

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

543.000

654.400

590.400

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve and Dividend (Including Tax)

0.000

0.000

52.300

 

BALANCE CARRIED TO THE B/S

157.741

543.000

654.400

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Service  income

0.000

61.100

45.600

 

TOTAL EARNINGS

0.000

61.100

45.600

 

 

 

 

 

 

EXPORT VALUE

NA

NA

4.563

 

 

 

 

 

 

IMPORT VALUE

NA

NA

5813.645

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(75.24)

(21.75)

22.71

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(4.92)

(0.83)

(1.10)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(4.70)

(0.85)

2.07

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(9.56)

(1.69)

4.52

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(1.73)

(0.19)

0.31

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

11.53

5.61

2.09

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.75

0.90

0.97

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: 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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

NOTE: Registered office has been shifted from G-1 and 2, New Udyog Mandir 2, Mogul Lane, Mahim (West), Mumbai, Maharashtra, India to the present address w.e.f. 01.02.2009

 

OPERATING RESULTS AND BUSINESS

 

The Company has achieved an overall turnover of Rs. 7816.700 millions (Rs. 13378.900 millions during 2011-12), a decrease of 42% as compared with the previous year. The turnover has two major components, Trading goods Rs.5096.700 millions (previous year Rs. 10290.700 millions) and Provision of Services - Rs. 2627.000 millions (previous year Rs.3011.500 millions).

 

The trading of goods as compared with the previous year went down by 51%, due to lower mobile handset sales. There has been a de growth in Trading of goods in areas such as telecommunication equipment, GSM handsets, etc.

 

The Service Business portfolio (Warehousing, Distribution and Value added services), as compared with previous year went down by 13% due to loss of customers like Tata International, Mary Kay, Croma, Landmark, etc.

 

The generally unstable and uncertain economic situation, both domestically and globally, and the inconsistent performance of the Indian currency over the past year in particular has impacted the logistics industry and resulted in a general decline in exports and manufacturing.

 

The Loss for the period ended 31st March 2013 was Rs. 385.300 millions. The current period deficit in the statement of Profit and Loss account has been impacted largely on account of Provisions for doubtful trade receivables.

 

FUTURE OUTLOOK

 

The Indian Logistics market is estimated by Mckinsey to be Rs.5500000.000 millions in FY 12-13 and expected to grow at CAGR of 9-11% to reach Rs.7320500.000 millions by 2015. The Indian 3PL market is expected to grow at a CAGR of 25% to reach Rs. 314330.000 millions by 2015 (Source: TSMG). Of the total logistics market in India, Transportation is the largest segment with 62% share followed by Warehousing 26%, Freight Forwarding 8% and Value Added Services (VAS) 4%. Your Company is well positioned to grow exponentially across these segments.

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10459010

22/10/2013

1,300,000,000.00

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

CYNERGY, A-1 GROUND FLOOR AND A-6TH FLOOR, APPA SAHEB MARATHE MARG, PRABHADEVI, MUMBAI, MAHARASHTRA - 400025, INDIA

B89052161

2

10452940

09/10/2013

1,125,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B86614476

3

10007989

31/03/2006

2,000,000,000.00

CORPORATION BANK

BHARAT HOUSE, 104, B.S. MARG, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA

A00692087

4

90145628

24/10/2008 *

5,000,000,000.00

IDBI BANK LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

A49125198

5

90145175

31/03/2006 *

700,000,000.00

UNION BANK OF INDIA LIMITED

MAHARASHTRA, INDIA

-

6

90145167

31/03/2006 *

1,000,000,000.00

PUNJAB NATIONAL BANK

BRADY HOUSE, 12/14 V N ROAD, FORT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

7

90143909

07/05/2002

300,000,000.00

IDBI BANK LIMTED

224-A; MITTAL COURT, A-WING; 2ND FLOOR; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

 

* Date of charge modification

 

FIXED ASSETS

 

Tangible assets

 

·         Buildings

·         Plant and equipment

·         Furniture and fixtures

·         Vehicles

·         Office equipment

·         Computer equipments

·         Other equipments

 


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. 61.93

UK Pound

1

Rs. 102.06

Euro

1

Rs. 84.31

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Report Prepared by :

DPH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

4

--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

 

45

 

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.