MIRA INFORM REPORT

 

 

Report No. :

336770

Report Date :

14.08.2015

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE BRANDS LIMITED (w.e.f. 17.12.2007)

 

 

Formerly Known As :

RELIANCE BRANDS PRIVATE LIMITED

 

 

Registered Office :

5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400 002, Maharashtra

Tel. No.:

91-22-40613561/ 40613000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

25.09.2007

 

 

Com. Reg. No.:

11-174470

 

 

Capital Investment / Paid-up Capital :

Rs.808.600 million

 

 

CIN No.:

[Company Identification No.]

U51900MH2007PLC174470

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR22340D

 

 

PAN No.:

[Permanent Account No.]

AADCR7395F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is mainly engaged in “organised retail” in India.

 

 

No. of Employees :

Information declined by the Management. 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of “Reliance Group”. It is an established company having moderate track.

 

During FY-2014 company is moderately developing its business by the growth in sales volume but has reported consecutive losses from its operations which has led to its accumulation over the year.

 

The rating are constrained on company huge external borrowing which has led to falling off capital structure.

 

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

 

In view, part of being “Reliance Group” backed by experienced promoters and 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

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 31-03-2013.

 

INFORMATION DECLINED

 

Management non-cooperative

 

(Tel. No.: 91-22-40613000/ 40613561)

 

LOCATIONS

 

Registered Office :

5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400 002, Maharashtra, India

Tel. No.:

91-22-40613561/ 40613000

Fax No.:

91-22-40613299

E-Mail :

hetal.mehta@ril.com

 

 

DIRECTORS

 

AS ON 29.09.2014

 

Name :

Mr. Ramesh Kumar Damani

Designation :

Director

Address :

403, 4th Floor, Usha Kunj, 30D, Juhu Koliwada, Juhu Tara Road, Santacruz, Mumbai  – 400 049, Maharashtra, India 

Date of Birth/Age :

06.05.1971

Date of Appointment :

26.09.2007

DIN No.:

00049764

 

Name :

Timothy Ralph Wheeler

Designation :

Director

Address :

5150, Beech Bluff, Dr. Morganton, North Carolina, 0028655, USA

Date of Birth/Age :

19.12.1954

Date of Appointment :

29.02.2008

DIN No.:

00863237

 

Name :

Mr. Pankaj Mohan Pawar

Designation :

Director

Address :

302, Archana Saurabh, Plot No.20, Sector-7, Koparkhairane, Navi Mumbai – 400 709, Maharashtra, India

Date of Birth/Age :

14.07.1972

Date of Appointment :

31.03.2010

DIN No.:

00085077

 

Name :

Mr. Mayank Jayantilal Shah

Designation :

Additional Director

Address :

B/605, Raj Residency-I, Mahavir Nagar, Dhanukarwadi, Kandivali (West), Mumbai – 400 067, Maharashtra, India

Date of Appointment :

30.03.2015

DIN No.:

00076380

 

 

Name :

Mr. Samirbhai Rameshbhai Sheth

Designation :

Additional Director

Address :

16, KADAMB Banglows, Vastrapur, Ahmedabad – 380 015, Gujarat, India

Date of Appointment :

30.03.2015

DIN No.:

01285752

 

 

KEY EXECUTIVES

 

Name :

Mr. Pranav Kishor Lodhavia

Designation :

Chief Financial Officer

Address :

304, Everest Terraces, Tejpal Road, Vile Parle (East), Mumbai – 400 057, Maharashtra, India

Date of Appointment :

16.03.2015

PAN No. :

AAAPL6202F

 

 

Name :

Mr. Darshan Rasiklal Mehta

Designation :

Chief Executive Officer

Address :

32, Mayflower, Carmichael Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/ Age :

53 Years

Qualification :

B. Com, F.C.A, A.I.C.W.A

Experience :

30 Years

Date of Appointment :

30.09.2014

PAN No. :

AADPM4145K

 

 

Name :

Mr. Sumeet Yadav

Designation :

Senior Vice President

 

 

Name :

*Mr. Nitin Chhabra

Designation :

Senior Vice President

 

 

Name :

Mr. P K.X Thomas

Designation :

Senior Vice President

 

 

Name :

Mr. Ashish Patil

Designation :

Senior Vice President

 

 

Name :

Mr. Deval Shah

Designation :

Head - Business Operations

 

 

Name :

Mr. KVS Seshasai*

Designation :

Head - Business Operations

 

* Denotes employment for part of the year.

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2014

 

Names of Shareholders

 

No. of Shares

Reliance Retail Ventures Limited (Formerly Reliance Commercial Associates Limited), India

80859994

 

Sudhakar Saraswatula jointly with Reliance Retail Ventures Limited

1

Madhavan Ganesan jointly with Reliance Retail Ventures Limited

1

A. Ramaswamy jointly with Reliance Retail Ventures Limited

1

Rajendra Madhav Kamath jointly with Reliance Retail Ventures Limited

1

Rohit C. Shah jointly with Reliance Retail Ventures Limited

1

Sridhar Kothandaraman jointly with Reliance Retail Ventures Limited

1

Total

80860000

 

AS ON 30.03.2015

 

Names of Allottee

 

No. of Shares

L.V. Merchant jointly with K.R. Raja (As trustees of Reliance Brands Stock Option Trust), India

9000000

Total

9000000

 

AS ON 29.09.2014

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is mainly engaged in “organised retail” in India.

 

 

Products/ Services :

Item Code No. (ITC Code)

 

Product/ Service Description

99622340

Footwear

99622330

Apparel

99622330

Accessories

99839900

Support Services

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour

Market Goodwill

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality

Delivery Behaviour

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the Management. 

 

 

Bankers :

Banker Name

HDFC Bank Limited

Branch Address

HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

Facilities :

Secured Loans

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Rupee term loans from banks

(Term loans are secured by hypothecation of vehicles and are repayable over a period of 4 years by way of equated monthly instalments.)

6.885

4.897

Total

6.885

4.897

 

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, 212 Tulsiani Chambers, Nariman Point, Mumbai – 400 021, Maharashtra, India

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

AAAFC0662N

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Ultimate Holding Company:

Reliance Industries Limited, India (CIN No.: L17110MH1973PLC019786)

 

Holding Company:

Reliance Retail Ventures Limited (Formerly Reliance Commercial Associates Limited), India (CIN No.: U51909MH2006PLC166166)

 

Subsidiary Companies:
  • Reliance Style Fashion India Private Limited (CIN No.: U51310MH2008PTC178078)
  • Reliance Styles India Limited (CIN No.: U17120MH2008PLC180309)
  • Reliance Lifestyle Holdings Limited (CIN No.: U01403MH2007PLC172415)

 

Joint Ventures:
  • Diesel Fashion India Reliance Private Limited (CIN No.: U18101GJ2007PTC050985)
  • Reliance Paul and Shark Fashions Private Limited (CIN No.: U74994MH2008PTC180316)
  • Zegna South Asia Private Limited  (CIN No.: U51909MH2006PTC166092)
  • Iconix Lifestyle India Private Limited (CIN No.: U74999MH2012FTC226582)
  • Brooks Brothers India Private Limited (Formerly In Vogue Brand Solutions Private Limited) (CIN No.: U74900MH2012PTC227437)

 

Fellow Subsidiary Companies:
  • Reliance Supply Chain Solutions Limited (CIN No.: U52190MH2007PLC175508)
  • Reliancedigital Retail Limited (Amalgamated with Reliance Trading Limited (formerly Reliance Trends Limited) as per The Scheme of Arrangement and Amalgamation, effective 1st July, 2013 with the Appointed Date being 1st April, 2012.) (CIN No.: U70102MH2007PLC170415)
  • Strategic Manpower Solutions Limited (CIN No.: U74999MH2007PLC167704)
  • Reliance Retail Limited (Formerly Reliance Fresh Limited) (CIN No.: U01100MH1999PLC120563)
  • Reliance Trading Limited (Formerly Reliance Trends Limited) (CIN No.: U51909MH2006PLC166165)
  • Reliance Gems and Jewels Limited (Amalgamated with Reliance Trading Limited (formerly Reliance Trends Limited) as per The Scheme of Arrangement and Amalgamation, effective 1st July, 2013 with the Appointed Date being 1st April, 2012.) (CIN No.: U25199MH1998PLC114011)
  • Reliance Leisures Limited (Amalgamated with Reliance Trading Limited (formerly Reliance Trends Limited) as per The Scheme of Arrangement and Amalgamation, effective 1st July, 2013 with the Appointed Date being 1st April, 2012.) (CIN No.: U52100MH2007PLC175533)
  • Reliance Retail Limited [Referred to as erstwhile Reliance Retail Limited. Amalgamated with Reliance Retail Limited (formerly Reliance Fresh Limited) as per The Scheme of Arrangement and Amalgamation, effective 1st July, 2013 with Appointed Date being 1st April, 2012. - (holding company upto 29.11.2012, fellow subsidiary company from 30.11.2012)] (CIN No.: U17120MH1998PLC114010)

 

CAPITAL STRUCTURE

 

AFTER 29.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

101060000

Equity Shares

Rs.10/- each

Rs.1010.600 million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

89860000

Equity Shares

Rs.10/- each

Rs.898.600 million

 

 

 

 

 

AS ON 29.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

100000000

Equity Shares

Rs.10/- each

Rs.1000.000 million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

80860000

Equity Shares

Rs.10/- each

Rs.808.600 million

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1) Shareholders' Funds

 

 

 

(a) Share Capital

808.600

808.600

808.600

(b) Reserves & Surplus

(719.315)

(483.794)

(249.262)

(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)

89.285

324.806

559.338

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

3953.585

2231.708

841.884

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

129.565

189.480

0.000

(d) Long-term provisions

16.372

13.474

14.344

Total Non-current Liabilities (3)

4099.522

2434.662

856.228

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

135.080

84.490

65.436

(c) Other current liabilities

129.178

40.384

27.835

(d) Short-term provisions

0.671

0.247

0.266

Total Current Liabilities (4)

264.929

125.121

93.537

 

 

 

 

TOTAL

4453.736

2884.589

1509.103

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

573.623

403.516

362.617

(ii) Intangible Assets

9.554

11.963

1.434

(iii) Capital work-in-progress

33.202

54.956

2.829

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1114.448

982.198

411.458

(c) Deferred tax assets (net)

371.522

246.659

117.448

(d)  Long-term Loan and Advances

1279.874

856.883

432.789

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

3382.223

2556.175

1328.575

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

527.756

0.000

0.000

(b) Inventories

389.979

187.603

102.921

(c) Trade receivables

64.979

45.848

20.178

(d) Cash and cash equivalents

41.205

41.411

2.515

(e) Short-term loans and advances

47.594

53.552

54.914

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

1071.513

328.414

180.528

 

 

 

 

TOTAL

4453.736

2884.589

1509.103

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from operations

1015.973

612.825

301.191

 

 

Other Income

8.879

0.229

0.179

 

 

TOTAL                                    

1024.852

613.054

301.370

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock-in-Trade

604.905

293.115

174.275

 

 

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

(197.683)

(78.620)

(81.536)

 

 

Employees benefits expense

278.335

322.884

212.781

 

 

Other Expenses

626.944

397.166

240.571

 

 

TOTAL                                    

1312.501

934.545

546.091

 

 

 

 

 

Less

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

(287.649)

(321.491)

(244.721)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

3.861

0.818

0.296

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(291.510)

(322.309)

(245.017)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

68.874

41.434

29.497

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

(360.384)

(363.743)

(274.514)

 

 

 

 

 

Less

TAX                                                                 

(124.863)

(129.211)

(87.587)

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

(235.521)

(234.532)

(186.927)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(483.794)

(249.262)

(62.335)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(719.315)

(483.794)

(249.262)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components and Stores parts

375.917

202.090

123.274

 

 

Capital Goods

24.855

35.730

24.230

 

TOTAL IMPORTS

400.772

237.820

147.504

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(2.91)

(2.90)

(2.31)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current maturities of long-term debt

3.504

2.219

0.999

Cash generated from operations

NA

NA

NA

Net cash flows from (used in) operations

(471.908)

(457.207)

(276.981)

Net cash flows from (used in) operating activities

(464.476)

(470.828)

(281.354)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(23.18)

(38.27

(62.06)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

(28.31)

(52.46)

(81.25)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(12.28)

(22.72)

(28.09)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(4.04)

(1.12)

(0.49)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

44.32

6.88

1.51

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.04

2.62

1.93

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particulars

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Share Capital

808.600

808.600

808.600

Reserves & Surplus

(249.262)

(483.794)

(719.315)

Share Application money pending allotment

0.000

0.000

0.000

Net worth

559.338

324.806

89.285

 

 

 

 

Long-term borrowings

841.884

2231.708

3953.585

Short term borrowings

0.000

0.000

0.000

Current Maturities of Long term debt

0.999

2.219

3.504

Total borrowings

842.883

2233.927

3957.089

Debt/Equity ratio

1.507

6.878

44.320

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Revenue from operations

301.191

612.825

1015.973

 

 

103.467

65.785

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Revenue from operations

301.191

612.825

1015.973

Profit

(186.927)

(234.532)

(235.521)

 

(62.06%)

(38.27%)

(23.18%)

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity-Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

NOTE:

 

The registered office of the company has been shifted from Reliance Corporate Park, Building No.4, Ground Floor, ‘C’ Wing, Thane-Belapur Road, Gansoli, Navi Mumbai – 400 701, Maharashtra to the present address w.e.f. 15.12.2011.

 

 

OPERATIONAL REVIEW:

 

During the year the Italian jeans brand “GAS” tied up with the Company for a long term franchise to open and operate mono branded GAS stores in India.

 

The Company currently operates 48 mono brand stores and 17 Shop-In-Shop’s for the franchise business of 8 International Brands.

 

SCHEME OF AMALGAMATION:

 

During the year, a Scheme of Amalgamation (scheme) was filed with the Bombay High Court by the Company’s two wholly-owned subsidiaries namely Reliance Style Fashion India Private Limited and Reliance Styles India Limited. The scheme provides for amalgamation of the above two wholly-owned subsidiaries with the Company with effect from the appointed date of 1st April, 2013. The Company shall give effect to the scheme after receipt of necessary approvals.

 

 

UNSECURED LOAN

 

Particulars

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Loans and advances from other

(Represents amount borrowed from the holding company for the period of 5 years.)

3946.700

2226.811

Total

3946.700

2226.811

 

 

INDEX OF CHARGES:

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10402605

17/01/2013

10,000,000.00

HDFC BANK LIMITED

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

B67940015

2

10154315

30/03/2009

5,000,000.00

HDFC BANK LIMITED

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

A60806726

 

 

FIXED ASSETS:

 

Tangible Assets

·         Plant and Equipments

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Leasehold Improvements

Intangible Assets

·         Computer Software

·         Licenses and Franchise

 

 

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.64.92

UK Pound

1

Rs.101.44

Euro

1

Rs.72.26                      

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILITY

1~10

-

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

-

--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

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

 

31

 

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.