MIRA INFORM REPORT

Report No. :	338654
Report Date :	27.08.2015

IDENTIFICATION DETAILS

Name :	VSCG DISTRIBUTION PRIVATE LIMITED
Registered Office :	S No. 50/15/1 Samarth Sankul, Near Bank of Maharashtra, At Post Narhe, Pune – 411041, Maharashtra
Tel. No.:	91-217-2324588
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.11.2012
Com. Reg. No.:	11-145476
Capital Investment / Paid-up Capital :	Rs. 7.500 Million
CIN No.: [Company Identification No.]	U74900PN2012PTC145476
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	PNEV10027D
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of IT Products and Telecom and Consumer Electrical Products.
No. of Employees :	37 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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 an established company having moderate track record. During FY2014, the company achieved increase in its sales turnover the profitability margin is reported low. Rating further constrained on company moderate financial risk profile and huge external borrowings which act as a threat to liquidity position of the company. However, trade relations are fair. Business is active. Payment terms are slow but correct. 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

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. Abhijit Gada
Designation :	Finance Manager
Contact No.:	91-8975760705
Date :	26.08.2015

LOCATIONS

Registered Office :	S No. 50/15/1 Samarth Sankul, Near Bank of Maharashtra, At Post Narhe, Pune – 411041, Maharashtra, India
Tel. No.:	91-217-2324588
Mobile No.:	91-8975760705 (Mr. Abhijit Gada)
Fax No.:	Not Available
E-Mail :	vscgpl@gmail.com shyam@chandakca.com sales@vscgpl.com accounts@chandakca.com
Warehouse :	Located at: · Solapur Latur Hyderabad
Branch Offices :	Located at: · Solapur Latur Hyderabad Pune

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Prabhakar Gundappa Gada

Designation :

Director

Address :

E-27, F Mantri Chandar Nagar, Bhavani Peth, Solapur – 413002, Maharashtra, India

Date of Birth/Age :

26.01.1948

Date of Appointment :

22.11.2012

DIN No.:

06431570

Name :

Mr. Nitin Mullikarjun Kulkarni

Designation :

Director

Address :

26/10, Anubhav Bhawani Peth, Palace Plot, Solapur – 413007, Maharashtra, India

Date of Birth/Age :

01.11.1976

Date of Appointment :

22.11.2012

DIN No.:

06431571

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	U74900PN2012PTC145476	VSCG DISTRIBUTION PRIVATE LIMITED	Director	22-11-2012	22-11-2012	Active	NO
2	U74900PN2013PTC146967	NIKUL GROUP OF INDUSTRIES PRIVATE LIMITED	Director	17-04-2013	17-04-2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Abhijit Gada
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Prabhakar Gundappa Gada	747500	99.67
Nitin Mullikarjun Kulkarni	2500	0.33
Total	750000	100.00

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of IT Products and Telecom and Consumer Electrical Products.
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	Cash, Bank Guarantee and Credit
Purchasing :	Cash, Bank Guarantee and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Retailers and Distributor

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

No. of Employees :

37 (Approximately)

Bankers :

Bank Name:	Axis Bank Limited
Branch:	214/215, City Mall, Ganeshkhind Road, Pune - 411007, 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 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
Loans repayable on demand	39.754	10.058
Total	39.754	10.058

Banking Relations :	--
Auditors :
Name :	Arun Nalla and Company Chartered Accountants
Address :	276-A, Ganesh Complex, 1st Floor, Sakhar Peth, Solapur – 413002, Maharashtra, India
Tel. No.:	91-217-2727267
E-Mail :	nalla.arun@gmail.com
Income-tax PAN of auditor or auditor's firm :	AEGPN2116L
Memberships :	--
Collaborators :	--
Entities in which KMP/ relative of KMP have significant influence :	· Gurumaharaj Computers Gurumaharaj Computers Services

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750,000	Equity Shares	Rs. 10/- each	Rs. 7.500 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	7.500	2.500
(b) Reserves & Surplus	6.318	0.169
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	13.818	2.669
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	39.754	20.025
(b) Trade payables	33.041	11.171
(c) Other current liabilities	0.723	0.054
(d) Short-term provisions	1.445	0.007
Total Current Liabilities (4)	74.963	31.257
TOTAL	88.781	33.926
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.755	0.000
(ii) Intangible Assets	0.045	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.004	0.022
(d) Long-term Loan and Advances	0.372	0.100
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	2.176	0.122
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	16.337	1.191
(c) Trade receivables	66.382	30.550
(d) Cash and cash equivalents	2.142	2.036
(e) Short-term loans and advances	1.744	0.027
(f) Other current assets	0.000	0.000
Total Current Assets	86.605	33.804
TOTAL	88.781	33.926

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		TOTAL	386.003	92.195
Less	EXPENSES
		TOTAL	380.664	91.950
	PROFIT BEFORE TAX		5.339	0.245
Less	TAX		1.690	0.076
	PROFIT AFTER TAX		3.649	0.169
	Earnings Per Share (Rs.)		11.04	0.68

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	800.000
	(Increase in Business Activity)

The above information has been parted by Mr. Abhijit Gada (Finance Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

PARTICULARS	31.03.2014	31.03.2013
Current Maturities of Long term debt	0.000	0.000
Cash generated from operations	(18.731)	(19.930)
Net Cash flow from (used in) Operating activities	(20.403)	(20.028)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Return on Total Assets (PBT/Total Assets}	(%)	6.01	0.72
Return on Investment (ROI) (PBT/Networth)		0.39	0.09
Debt Equity Ratio (Total Liability/Networth)		2.88	7.50
Current Ratio (Current Asset/Current Liability)		1.16	1.08

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	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	2.500	7.500
Reserves & Surplus	0.169	6.318
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	2.669	13.818
Long-term borrowings	0.000	0.000
Short term borrowings	20.025	39.754
CURRENT MATURITIES OF LONG-TERM DEBTS	0.000	0.000
Total borrowings	20.025	39.754
Debt/Equity ratio	7.503	2.877

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Total Income	92.195	386.003
		318.681

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Total Income	92.195	386.003
Profit	0.169	3.649
	0.18%	0.95%

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)	No
16	No. of employees	Yes
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%	Yes
28	Estimation for coming financial year	No
29	Profitability for last two 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

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10416381	29/07/2013 *	50,000,000.00	AXIS BANK LIMITED	214/215,CITY MALL, GANESHKHIND ROAD, PUNE, MAHARASHTRA - 411007, INDIA	B82406711

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Loans repayable on demand	0.000	9.943
Loans and advances from related parties	0.000	0.024
Total	0.000	9.967

CORPORATE INFORMATION

Subject which was incorporated on 22^nd November 2012

The Company’s principle activity is to carry on the business in the field of distribution, buying, selling, marketing, trading, stocking, import, exports or otherwise dealing in all varieties of electronic, electrical, hardware, ITES, telecommunication, devices and products, computer components, assemblies, sub assemblies, video and audio equipments, cameras, games, mobiles, home appliances, provided services and solutions in relation to above products in India and abroad.

OPERATIONS AND FUTURE PROSPECTS

During the reporting period the Company has incurred the Total Income of Rs. 386.003 Million as compared to the Total Income of Rs. 92.195 Million in the previous preceding financial year. The Management is making continuous efforts to improve the operations and efficiency of the company by reducing the Administrative costs and other expenses resulting in the Net Profit of Rs. 3.649 Million as compared to that of Rs. 0.169 Million of the previous preceding financial year.

Considering the tremendous growth in the present financial year the management is hopeful that the yield of the company will be improved by the end of next financial year. The company is also in the process of undertaking various measures to achieve economies of scale and thereby achieving more profits in the coming years.

The company is also planning to adopt various strategies and plans which would be advantageous and in the best interest of the company.

FIXED ASSETS:

· Office Premises

Plant and Machinery

Computer and Accessories

Vehicles

Office Equipments

Furniture and Fixture

Software

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. 66.16
UK Pound	1	Rs. 103.88
Euro	1	Rs. 75.89

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	KAS
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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		27

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.