MIRA INFORM REPORT

 

 

Report No. :

338248

Report Date :

24.08.2015

 

IDENTIFICATION DETAILS

 

Name :

S M CREATIVE ELECTRONICS LIMITED (w.e.f. 03.03.1913)

 

 

Formerly Known As :

S M CREATIVE ELECTRONICS PRIVATE LIMITED

 

 

Registered Office :

S-177, Panchshila Park, New Delhi-110017

Tel. No.:

91-11-29239476

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

23.01.1992

 

 

Com. Reg. No.:

55.047306

 

 

Capital Investment / Paid-up Capital :

Rs. 40.022 Million

 

 

CIN No.:

[Company Identification No.]

U32109DL1992PLC047306

 

 

IEC No.:

0592000044

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACS047OM

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer, Trader, Exporter and Importer of Telecom and Defense Power Supply.

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (14)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is established company and it is having moderate track record.

 

During the year 2014, the company has reported huge external borrowings which have leverage the balance sheet position of the company.

 

Further rating is constrained on company, due to accumulated losses over the years company’s net worth position is fully eroded.

 

Business is active. Payments are reported as slow.

 

In view of a accumulated losses backed by its negative reserves, the company can be considered for the business dealing on a fully safe and secured trade terms and conditions.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

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 PARTED BY

 

Name :

Mr. S. K. Gupta

Designation :

General Finance Manager

Contact No.:

91-124-4909850

Date :

22.08.2015

 

LOCATIONS

 

Registered Office :

S-177, Panchshila Park, New Delhi-110017, India

Tel. No.:

91-11-29239476

Fax No.:

Not Available

E-Mail :

smcel@smcel.com

Website :

http://www.smcel.com

Location:

Owned

Locality :

Residential

 

 

Corporate Office/ Factory :

10, Electronic City, Sector – 18, Gurgaon-122015, Haryana, India

Tel. No.:

91-124-4909850/ 2455201- 211

Fax No.:

91-124-2455212/ 2346465

Location:

Rented

 

 

Branch Offices :

Located at:

 

·         Bangalore

·         Mumbai

·         Gurgaon

·         Hyderabad

 

 

Overseas Offices :

Located at:

 

·         Afghanistan

·         Bangladesh

·         France

·         Nigeria

·         Singapore

·         Sri Lanka

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Mr. Sanjay Trehan

Designation :

Managing Director

Address :

S-177, Panchsheel Park, New Delhi-110017, Delhi, India

Date of Birth/Age :

12.07.1992

Date of Appointment :

01.08.2012

DIN No.:

00066111

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U32109DL1992PLC047306

S M CREATIVE ELECTRONICS LIMITED

Managing director

01-08-2012

23-01-1992

-

Active

NO

2

U74899DL1988PTC034030

DATANET ADVERTISING PRIVATE LIMITED

Director

15-07-1994

15-07-1994

-

Active

NO

3

U74899DL1994PTC060455

CROMWELL LEASING AND FINANCE PRIVATE LIMITED

Director

25-07-1994

25-07-1994

-

Active

NO

4

U29299DL1994PTC060579

ALVO ELECTRONICS PRIVATE LIMITED

Director

29-07-1994

29-07-1994

21-12-2008

Active

NO

5

U29253DL2012PTC240913

SMCEL COMPONENTS PRIVATE LIMITED

Director

24-08-2012

24-08-2012

-

Active

NO

 

 

Name :

Mrs. Priya Trehan

Designation :

Director

Address :

S-17, Panchsheel Park, New Delhi-110017, Delhi, India

Date of Appointment :

25.09.2000

DIN No.:

00066146

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U74899DL1988PTC034030

DATANET ADVERTISING PRIVATE LIMITED

Director

15-07-1994

15-07-1994

-

Active

NO

2

U74899DL1994PTC060455

CROMWELL LEASING AND FINANCE PRIVATE LIMITED

Director

25-07-1994

25-07-1994

-

Active

NO

3

U29299DL1994PTC060579

ALVO ELECTRONICS PRIVATE LIMITED

Director

29-07-1994

29-07-1994

01-12-2009

Active

NO

4

U32109DL1992PLC047306

S M CREATIVE ELECTRONICS LIMITED

Director

25-09-2000

25-09-2000

-

Active

NO

5

U29253DL2012PTC240913

SMCEL COMPONENTS PRIVATE LIMITED

Director

24-08-2012

24-08-2012

-

Active

NO

 

 

Name :

Mrs. Sudershan Trehan

Designation :

Director

Address :

E-219, Greater Kailash - I, New Delhi- 110048, Delhi, India

Date of Birth/Age :

10.10.1938

Date of Appointment :

23.01.1992

DIN No.:

00145017

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

U32109DL1992PLC047306

S M CREATIVE ELECTRONICS LIMITED

Director

23-01-1992

23-01-1992

Active

NO

2

U29299DL1994PTC060579

ALVO ELECTRONICS PRIVATE LIMITED

Director

01-09-2010

01-12-2009

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. S. K. Gupta

Designation :

General Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Names of Shareholders

No. of Shares

 

Sanjay Trehan

3665741

Sudershan Trehan

1218

Priya Trehan

293408

Theo Benning GMBH, Germany

40000

S D Maini

280

Kapil Sahni

280

Renu Sahni

280

Maneka Khanna

1000

Total

4002207

 

 

AS ON 30.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

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

1.00

Directors or relatives of directors

98.98

Other top fifty shareholders

0.02

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader, Exporter and Importer of Telecom and Defense Power Supply.

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

 

Products :

Finished Good

Countries :

·         Uganda

·         Bhutan

·         Sri Lanka

·         Nigeria

 

 

Imports :

 

Products :

Raw Material

Countries :

·         USA

·         European Countries

·         Switzerland

 

 

Terms :

 

Selling :

Cash, Advance Payment, L/C and Credit

 

 

Purchasing :

Cash, Advance Payment, L/C and Credit

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Company Name:

Vicor, USA

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Wholesalers, Retailers and Manufacturer

 

Company Name:

Bharat Electronics Limited, Bangalore

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

Bank Name:

Oriental Bank of Commerce

Branch:

5, Community Centre, New Friends Colony, New Delhi - 110065, Delhi, 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 A/C Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (Cc/Od/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Working Capital Loan From Banks

0.000

65.762

 

 

 

Total

0.000

65.762

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Khanna Gulati and Associates

Chartered Accountants

Address :

171, Somdutt Chambers, Bhikaji Cama Place, New Delhi-110066, Delhi, India

Tel. No.:

91-11-26104222/ 26170244/ 26184288

Fax No.:

91-11-26101773

E-Mail :

kgacaindia@gmail.com

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

AADFG2589H

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiary Company:

·         S and S Electronics Components Pte, Limited, Singapore

·         BSMC Power Nigeria Limited

 

 

Entities over which Key Management Personnel are able to exercise :

·         Cromwell Leasing and Finance Private Limited

·         ALVO Electronics Private Limited

·         SMCEL Components Private Limited

·         Trehan Electronics International Private Limited

·         S M Creative Telecom Uganda Private Limited

·         S M Creative Electronic Limited, Kenya

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs. 10/- each

Rs. 50.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4002207

Equity Shares

Rs. 10/- each

Rs. 40.022 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

40.022

40.022

40.022

(b) Reserves & Surplus

(48.137)

(48.602)

2.032

(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)

(8.115)

(8.580)

42.054

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

28.239

24.624

15.460

(b) Deferred tax liabilities (Net)

1.717

2.066

2.916

(c) Other long term liabilities

0.000

1.335

2.269

(d) long-term provisions

3.183

3.974

6.588

Total Non-current Liabilities (3)

33.139

31.999

27.233

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

65.762

73.416

(b) Trade payables

48.824

38.781

63.330

(c) Other current liabilities

61.290

23.255

34.677

(d) Short-term provisions

0.133

0.156

0.355

Total Current Liabilities (4)

110.247

127.954

171.778

 

 

 

 

TOTAL

135.271

151.373

241.065

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

20.393

23.669

49.017

(ii) Intangible Assets

2.753

3.882

5.115

(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

1.726

1.726

1.726

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

5.213

6.166

12.063

(e) Other Non-current assets

0.275

1.367

1.212

Total Non-Current Assets

30.360

36.810

69.133

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

17.521

28.449

33.061

(c) Trade receivables

73.958

73.532

112.913

(d) Cash and cash equivalents

10.151

9.217

18.179

(e) Short-term loans and advances

3.281

3.365

7.779

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

104.911

114.563

171.932

 

 

 

 

TOTAL

135.271

151.373

241.065

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

98.206

101.841

227.466

 

 

Other Income

9.141

2.656

14.978

 

 

TOTAL                                     (A)

107.347

104.497

242.444

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

4.644

18.703

34.005

 

 

Purchases of Traded Goods

26.001

6.921

62.412

 

 

Manufacturing Expenses

1.093

1.743

4.736

 

 

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

6.434

(0.788)

(1.853)

 

 

Employees benefits expense

22.234

47.715

87.153

 

 

Other expenses

34.454

61.522

96.769

 

 

TOTAL                                     (B)

94.860

135.816

283.222

 

 

 

 

 

 

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

12.487

(31.319)

(40.778)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

8.856

13.048

12.591

 

 

 

 

 

 

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

3.631

(44.367)

(53.369)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3.855

4.907

5.689

 

 

 

 

 

 

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

(0.224)

(49.274)

(59.058)

 

 

 

 

 

Less

TAX                                                                  (H)

(0.336)

(0.826)

0.856

 

 

 

 

 

 

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

0.112

(48.448)

(59.914)

 

 

 

 

 

Less

Prior Period adjustments

(0.352)

2.185

0.093

 

 

 

 

 

 

PROFIT/ (LOSS)  FOR THE YEAR

0.464

(50.633)

(60.007)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Sale

0.293

0.000

0.000

 

 

Service Income

6.828

0.000

0.000

 

 

Commission Income

38.072

46.876

45.258

 

 

Export Sale

0.000

18.199

102.001

 

TOTAL EARNINGS

45.193

65.075

147.259

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

CIF value of Import

2.286

4.568

55.190

 

TOTAL IMPORTS

2.286

4.568

55.190

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.12

(12.65)

(14.99)

 

 

PARTICULARS

 

 

 

31.03.2015

Sales Turnover (Approximately)

 

 

100.000

 

 

 

 

 

Expected Sales (2015-2016): Rs. 120.000 Million

 

The above information has been parted by Mr. S. K. Gupta (General Finance Manager)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

 

 

 

 

Cash Generated from Operations

NA

NA

NA

 

 

 

 

Net Cash Flow from used in Operations

NA

NA

NA

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

0.11

(47.57)

(26.34)

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

12.72

(30.75)

(17.93)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(0.17)

(32.93)

(24.68)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.03

5.74

(1.40)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

(3.48)

(10.53)

2.11

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.95

0.90

1.00

 

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

40.022

40.022

40.022

Reserves & Surplus

2.032

(48.602)

(48.137)

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

42.054

(8.580)

(8.115)

 

 

 

 

Long-term borrowings

15.460

24.624

28.239

Short term borrowings

73.416

65.762

0.000

Total borrowings

88.876

90.386

28.239

Debt/Equity ratio

2.113

(10.534)

(3.480)

 

 

 

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)

Sales

227.466

101.841

98.206

 

 

(55.228)

(3.569)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

227.466

101.841

98.206

Profit after tax

(59.914)

(48.448)

0.112

 

(26.34%)

(47.57%)

0.11%

 

 


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

Yes

8

Designation of contact person

Yes

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)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

Yes

19

Major customers

Yes

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

Yes

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

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Loan From Related Parties

23.739

20.516

From Others

4.500

4.108

 

 

 

Total

28.239

24.624

 

 

OPERATIONS AND FUTURE OUTLOOK:

 

SMCEL has an all India presence through its branch offices and service cells at all important cities. It is equally well repressed abroad with subsidiary/branch offices, like office in Singapore, Nigeria etc. Export to some of these countries constitutes a significant segment of the Company’s turnover.

 

The Company has a strong R and D department recognized by Ministry of Science and Technology, Government of India. The R and D team is composed of highly qualified and experienced Engineers and supported by the latest design and development tools. It has also an after-sales service department (CSD), which is equipped to render prompt support to customers spread all over India and abroad. First the quality and then the prompt and effective after-sales support is what binds SMCEL and a wide spectrum of its satisfied customers.

 

The Company is also registered with Defence Offset Facilitation Agency (DOFA) which enables to have technical collaboration with foreign vendors for production and marketing of defence equipments. By this company is elgible to get direct foreign investment for research in Defence R and D.

 

Not only does the Company concentrate at caring for its customers, it is equally concerned in ensuring a highly conductive work environment for its workforce promotion and retention of talent is a prime concern of the management.

 

 

CHANGE OF ADDRESS:

 

The Registered Office of the company has been shifted from C-54, Soami Nagar, New Delhi-110017, India to the present address w.e.f 21.08.2006

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

Outstanding guarantees given to banks

12.307

17.573

 

 

 

Total

12.307

17.573


FIXED ASSETS:

 

Tangible Assets

 

·         Air conditioner

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Generator

 

 

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. 65.83

UK Pound

1

  Rs. 103.39

Euro

1

Rs. 74.27

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

IND

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

--

--CREDIT LINES

1~10

1

--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

 

14

 

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.