MIRA INFORM REPORT

 

 

Report Date :

30.09.2014

 

IDENTIFICATION DETAILS

 

Name :

HARI DARSHAN EXPORTS PRIVATE LIMITED

 

 

Registered Office :

FC/4070, F-Tower, Central Wing, 4th Floor, Bharat, Diamond Bourse, Bandra Kural Complex, Bandra (East), Mumbai – 400051, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

15.03.2014

 

 

Com. Reg. No.:

11-254385

 

 

Capital Investment / Paid-up Capital :

Rs.500.000 Millions

 

 

CIN No.:

[Company Identification No.]

U36932MH2014PTC254385

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, exporter and Imputers of diamonds.

 

 

No. of Employees :

5000 (Approximately)

 


 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated during 2003 as a partnership concern and later on 15.03.2014, it got converted into private limited company. It is having satisfactory track record.

 

Mr. Anil, Accountant provided general information and financial statements.

 

As per financial statement, overall financial position of the subject is sound and healthy.

 

Rating also reflects extensive industry experience of promoters in diamond industry.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealing at usual trade terms and conditions.

 

Note: Rating is considered on basis of financials of concern i.e. Hari Darshan Export (1st April 2013-15th March 2014) as well as Hari Darshan Exports Private Limited (16th March 2014-31st March 2014)

 

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

 

N E W S

 

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

 

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

 

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

 

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

 

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

 

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

 

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating: BBB-

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

15.09.2014

 

 

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 31-03-2014.

 

INFORMATION PARTED BY

 

Name :

Mr. Anil

Designation :

Accountant

Contact No.:

91-9769168368

Date :

27.09.2014

 

 

LOCATIONS

 

Registered Office :

FC/4070, F-Tower, Central Wing, 4th Floor, Bharat, Diamond Bourse, Bandra Kural Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-43434000

Mobile No.:

91-9769168368 (Mr. Anil)

Fax No.:

91-22-43434040

E-Mail :

info@hde.co.in

Website :

www.haridarshanexports.com

Area :

2700 sq. ft.

Location :

Owned

 

 

Branch Office :

51-Nilambaug, Behind Hardik Complex, Bhavnagar – 364003, India

Tel. No.:

91-278-2522187

Fax No.:

91-278-2522188

E-Mail :

bhavnagar@hde.co.in

 

 

Factory :

Bhavnagar, Gujarat, India

Area :

15000 sq. ft.

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr. Nileshkumar Lakhani

Designation :

Director

Address :

Plot No.25, Sukhsagar Society, Nilam Bag, Bhavnagar – 364003, Gujarat, India

Date of Birth/Age :

15.05.1980

Date of Appointment :

15.03.2014

DIN No.:

06830902

 

 

Name :

Mr. Ritesh Lakhani

Designation :

Director

Address :

3, Manishnagar Society, Behind Gayatrii Mandir, Dabholi Char Rasta, Surat – 395001, Gujarat, India

Date of Birth/Age :

01.06.1983

Date of Appointment :

15.03.2014

DIN No.:

06830919

 

 

Name :

Mr. Dinesh Dhola

Designation :

Director

Address :

AT-Surka, Post Ugamedi, TA Gadhada, Bhavnagar – 364765, Gujarat, India

Date of Birth/Age :

01.02.1980

Date of Appointment :

15.03.2014

DIN No.:

06830977

 

 

Name :

Krishnaben Dineshbahi Kalathiya

Designation :

Director

Address :

64, Rushi Raj Nagar, Behind Chitra Petrol Pump, Bhavnagar – 364001, Gujarat, India

Date of Birth/Age :

02.06.1981

Date of Appointment :

15.03.2014

DIN No.:

06830927

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 11.03.2014

 

Names of Shareholders

 

 

No. of Shares

Bhavesh Kumar Odhavji Lakhani

 

4100000

Nilesh Kumar Lavjibhai Lakhani

 

1650000

Krishnaben Kalathiya

 

3650000

Dinesh Kumar Vashrambhai Dhola

 

250000

Ritesh Kumar Jerambhai Lakhani

 

250000

Nitaben Bhavesh Kumar Lakhani

 

50000

Manishaben Nilesh Kumar Lakhani

 

50000

Total

 

10000000

 

As on 28.03.2014

 

Names of Allottees

 

 

No. of Shares

Bhavesh Kumar Odhavji Lakhani

 

12900000

Nilesh Kumar Lavjibhai Lakhani

 

1900000

Krishnaben Kalathiya

 

25200000

Total

 

40000000

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, exporter and Imputers of diamonds.

 

 

Exports :

 

Products :

Polish Diamonds

Countries :

·         Belgium

·         UAE

·         Hong Kong

 

 

Imports :

 

Products :

Rough Diamonds

Countries :

·         Belgium

·         Russia

 

 

Terms :

 

Selling :

Cash

 

 

Purchasing :

OD (90 Days)

 

GENERAL INFORMATION

 

Suppliers :

HD Diamonds DVBA, Belgium

 

 

Customers :

Euro Shine Jewellers, Belgium

 

 

No. of Employees :

5000 (Approximately)

 

 

Bankers :

·         State Bank of India, Bandra Kural Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

·         Royal Bank of Scotland

 

 

Facilities :

·         Fund and Non Fund = Rs.300.000 Millions (From State Bank of India)

·         Fund and Non Fund = Rs.600.000 Millions (From Royal Bank of Scotland)

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

Kiran K. Duravis

Chartered Accountant

Address :

Mumbai,  Maharashtra, India

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

60000000

Equity Shares

Rs.10/- each

Rs. 600.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs. 500.000 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

HARI DARSHAN EXPORTS PRIVATE LIMITED

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

 

 

31.03.2014

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

500.000

(b) Reserves & Surplus

 

 

119.364

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

Total Shareholders’ Funds (1) + (2)

 

 

619.364

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

 

137.100

(b) Deferred tax liabilities (Net)

 

 

0.000

(c) Other long term liabilities

 

 

0.000

(d) long-term provisions

 

 

0.000

Total Non-current Liabilities (3)

 

 

137.100

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

865.612

(b) Trade payables

 

 

585.550

(c) Other current liabilities

 

 

30.500

(d) Short-term provisions

 

 

48.699

Total Current Liabilities (4)

 

 

1530.361

 

 

 

 

TOTAL

 

 

2286.825

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

322.376

(ii) Intangible Assets

 

 

0.000

(iii) Capital work-in-progress

 

 

14.346

(iv) Intangible assets under development

 

 

0.000

(b) Non-current Investments

 

 

0.000

(c) Deferred tax assets (net)

 

 

1.336

(d)  Long-term Loan and Advances

 

 

3.415

(e) Other Non-current assets

 

 

0.000

Total Non-Current Assets

 

 

341.473

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

0.000

(b) Inventories

 

 

876.005

(c) Trade receivables

 

 

972.855

(d) Cash and cash equivalents

 

 

68.746

(e) Short-term loans and advances

 

 

9.976

(f) Other current assets

 

 

17.770

Total Current Assets

 

 

1945.352

 

 

 

 

TOTAL

 

 

2286.825

 

PROFIT & LOSS ACCOUNT

 

 

 

PARTICULARS

 

 

31.03.2014

 

SALES

 

 

 

 

Income

 

 

81.362

 

Other Income

 

 

2.794

 

TOTAL (A)

 

 

84.156

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

 

155.603

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

 

(102.349)

 

Employees benefits expense

 

 

20.614

 

Operating and Other expenses

 

 

2.670

 

TOTAL (B)

 

 

76.538

 

 

 

 

 

Less

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

 

 

7.618

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

 

 

4.923

 

 

 

 

 

 

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

 

 

2.695

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

 

 

0.953

 

 

 

 

 

 

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

 

 

1.742

 

 

 

 

 

Less

TAX (I)

 

 

0.538

 

 

 

 

 

 

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

 

 

1.204

 


KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2014

PAT / Total Income

(%)

 

 

1.43

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 

2.14

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

 

0.08

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

 

0.00

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

 

 

1.62

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

1.27


 

HARI DARSHAN EXPORT

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

15.03.2014

31.03.2013

31.03.2012

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

635.780

578.319

436.970

(b) Reserves & Surplus

118.161

118.161

118.161

(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)

753.941

696.480

555.131

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.607

0.914

1.183

(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)

0.607

0.914

1.183

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

905.934

760.438

749.855

(b) Trade payables

813.621

619.138

564.212

(c) Other current liabilities

46.742

16.944

22.235

(d) Short-term provisions

96.124

67.442

55.847

Total Current Liabilities (4)

1862.421

1463.962

1392.149

 

 

 

 

TOTAL

2616.969

2161.356

1948.463

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

337.674

346.494

193.581

(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

0.014

0.014

0.014

(c) Deferred tax assets (net)

3.467

2.485

1.354

(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

341.155

348.993

194.949

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

919.322

955.549

794.143

(c) Trade receivables

1212.206

773.920

799.511

(d) Cash and cash equivalents

40.465

2.644

17.137

(e) Short-term loans and advances

91.229

72.597

137.470

(f) Other current assets

12.592

7.653

5.253

Total Current Assets

2275.814

1812.363

1753.514

 

 

 

 

TOTAL

2616.969

2161.356

1948.463

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

15.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

3451.183

2588.960

2039.179

 

Other Income

17.686

2.410

6.502

 

TOTAL (A)

3468.869

2591.370

2045.681

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

2587.107

1986.466

1909.626

 

Manufacturing Expenses

598.595

464.302

495.460

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

59.795

(47.464)

(486.810)

 

Sales and Administrative Expenses

20.962

28.884

14.318

 

Other expenses

19.828

15.992

11.727

 

TOTAL (B)

3286.287

2448.180

1944.321

 

 

 

 

 

Less

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

182.582

143.190

101.360

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

82.050

63.968

47.068

 

 

 

 

 

 

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

100.532

79.222

54.292

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

27.650

25.325

12.482

 

 

 

 

 

 

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

72.882

53.897

41.810

 

 

 

 

 

Less

TAX (I)

24.880

17.174

12.859

 

 

 

 

 

 

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

48.002

36.723

28.951

 

 


KEY RATIOS

 

 

PARTICULARS

 

 

15.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

1.38

1.42

1.42

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.11

2.08

2.05

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.79

2.50

2.15

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.10

0.08

0.08

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.20

1.09

1.35

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.22

1.24

1.26

 

 

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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

No

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

 

 

DIAMOND INDUSTRY – INDIA

 

From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

 

The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

 

The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

 

Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

 

Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

 

Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

 

Excerpts from Times of India dated 30th October 2010 is as under –

 

Gem and Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10522208

30/08/2014

49,500,000.00

DEUTSCHE BANK AG

P.O. BOX NO. 9080, GOREGAON (EAST), MUMBAI, MAHAR
ASHTRA - 400063, INDIA

C21951769

2

10505793

15/03/2014

300,000,000.00

STATE BANK OF INDIA

DIAMOND BRANCH, BHARAT DIAMOND BOURSE,, D-3 WEST
CORE, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MA
HARASHTRA - 400051, INDIA

C09139601

 

 


 

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.61.43

UK Pound

1

Rs.99.73

Euro

1

Rs.77.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

SUM

 

 

Report Prepared by :

KVT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

4

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

43

 

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.