MIRA INFORM REPORT

 

 

Report No. :

329479

Report Date :

27.06.2015

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE COMMODITIES LIMITED

 

 

Registered Office :

11th Floor, R - Tech IT Park, Western Express Highway, Goregaon (East), Mumbai – 400063, Maharashtra

Tel. No.:

91-22-33201212

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

08.07.2005

 

 

Com. Reg. No.:

11-154611

 

 

Capital Investment / Paid-up Capital :

Rs. 30.000 Million

 

 

CIN No.:

[Company Identification No.]

U51100MH2005PLC154611

 

 

TAN No.:

[Tax Deduction & Collection Account No.

MUMR18695F

 

 

PAN No.:

[Permanent Account No.]

AADCR0446F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Commodity Brokerage Services.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear 

 

 

Comments :

RCOL is a wholly owned subsidiary of “Reliance Capital Ltd’ of and is currently involved in commodity broking business. Reliance Capital Limited (RCL) is a part of the “Reliance group”.

 

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

 

The rating takes into consideration adequate risk management, adequate capitalization levels and comfortable liquidity profile for current scale of operations.

 

The operating expenses of the company has increase due to which company sales turnover as well as net profit during FY-2014 has declined.

 

However, rating take into consideration on strong financial and managerial support from “Reliance Group” and sound track record in commodity industry.

 

Trade relation are fair. Business is active. Payments are reported to be usually correct.

 

In view of “Reliance Group”, the company can be considered for business dealing with some cautions.

 

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

ICRA

Rating

Short term non fund based bank lines = A1+

Rating Explanation

Very Strong degree of safety and carry low credit risk

Date

December, 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 31-03-2013.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON CO-OPERATIVE

 

(TEL. NO.: 91-22-33201212)

 

 

LOCATIONS

 

Registered/ Corporate Office :

11th Floor, R-Tech IT Park, Western Express Highway, Goregaon (East), Mumbai - 400063, Maharashtra, India

Tel. No.:

91-22-33201212/ 39896789

Fax No.:

91-22-33201555

E-Mail :

Hetal.d.shah@relianceada.com

Customer.support@reliancecommodities.co.in

Website :

http://www.reliancecommodities.co.in

 

 

DIRECTORS

 

AS ON 10.09.2014

 

Name :

Mr. Amit Vijay Bapna

Designation :

Director

Address :

1801 18th Floor, Sumer Trinity Tower - I, New Prabhadevi Road, Prabhadevi, Mumbai - 400025, Maharashtra, India

Date of Birth/Age :

20.01.1975

Qualification :

B.Com, ACA

Date of Appointment :

08.07.2005

PAN No.:

AAYPB9659A

DIN No.:

00008443

 

 

Name :

Mr. Mohan Ramachandran

Designation :

Director

Address :

A-2201,2nd Floor, Flower Valley Complex, Eastern Express Highway, Thane (West), Thane - 400601, Maharashtra, India

Date of Birth/Age :

12.09.1953

Qualification :

B.Com, LL.B, FCS

Date of Appointment :

16.09.2009

DIN No.:

01072442

 

 

Name :

Mr. Rajeev Ratan Srivastava

Designation :

Additional Director

Address :

Flat No. 1704, A - Wing, Laurel Mahindra, Spendour L.B.S. Road, Bhandup (West), Mumbai - 400078, Maharashtra, India

Date of Birth/Age :

10.10.1973

Date of Appointment :

23.02.2015

DIN No.:

07053900

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 10.09.2014

 

Names of Shareholders

No. of Shares

 

Reliance Capital Limited, India

2999940

Reliance Capital Limited, India Jointly with V. R. Mohan

10

Reliance Capital Limited, India Jointly with Yogesh Deshpande

10

Reliance Capital Limited, India Jointly with Amit Bapna

10

Reliance Capital Limited, India Jointly with Parul Jain

10

Reliance Capital Limited, India Jointly with Chetan Raval

10

Reliance Capital Limited, India Jointly with Atul Tandon

10

Total

 

3000000

 

 

AS ON 10.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

Bodies corporate

100.00

 

 

Total

 

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Commodity Brokerage Services.

 

 

Products :

ITC Code No.

 

Product Descriptions

99715220

Commodity Brokerage Services

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

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 :

Reference:

Not Divulged

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 :

Information declined by the management

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

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 from banks

26.983

23.382

 

 

 

Total

 

26.983

23.382

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

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

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

AAAFC0662N

 

 

Holding Company :

Reliance Capital Limited, India (L65910MH1986PLC165645)

 

 

Ultimate Holding Company :

Reliance Innoventures Private Limited, India

 (U73100MH2005PTC158356)

 

 

Fellow Subsidiary Company :

Reliance Securities Limited (U65990MH2005PLC154052)

Reliance Capital Asset Management Limited (U65910MH1995PLC220793)

Reliance Financial Limited (U65990MH2005PLC155675)

Reliance Infrastructure Finance Private Limited (U72900MH2000PTC125367)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5,000,000

Equity Shares

Rs. 10/- each

Rs. 50.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3,000,000

Equity Shares

Rs. 10/- each

Rs. 30.000 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

30.000

30.000

30.000

(b) Reserves & Surplus

82.327

103.990

87.412

(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)

112.327

133.990

117.412

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.022

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.121

0.162

0.312

Total Non-current Liabilities (3)

0.121

0.162

0.334

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

26.983

23.382

0.000

(b) Trade payables

234.891

211.619

461.011

(c) Other current liabilities

23.356

19.886

24.683

(d) Short-term provisions

0.017

0.018

0.245

Total Current Liabilities (4)

285.247

254.905

485.939

 

 

 

 

TOTAL

397.695

389.057

603.685

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

0.740

0.355

0.383

(ii) Intangible Assets

1.617

2.004

0.710

(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

0.020

0.020

0.020

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

13.310

7.754

9.280

(e) Other Non-current assets

0.600

0.000

0.000

Total Non-Current Assets

16.287

10.133

10.393

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

36.632

59.320

92.571

(d) Cash and cash equivalents

323.013

301.140

470.511

(e) Short-term loans and advances

14.268

12.479

16.020

(f) Other current assets

7.495

5.985

14.190

Total Current Assets

381.408

378.924

593.292

 

 

 

 

TOTAL

397.695

389.057

603.685

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

78.855

98.842

194.379

 

 

Other Income

30.363

37.941

56.304

 

 

TOTAL                                     (A)

109.218

136.783

250.683

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

0.000

0.000

98.709

 

 

Employees benefits expense

48.186

39.146

32.369

 

 

Other expenses

81.600

71.315

43.150

 

 

TOTAL                                     (B)

129.786

110.461

174.228

 

 

 

 

 

 

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

(20.568)

26.322

76.455

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.627

0.539

1.531

 

 

 

 

 

 

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

(21.195)

25.783

74.924

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.468

0.279

0.475

 

 

 

 

 

 

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

(21.663)

25.504

74.449

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

8.925

24.558

 

 

 

 

 

 

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

(21.663)

16.579

49.891

 

 

 

 

 

 

Earnings (Loss) Per Share (Rs.)

7.22

5.53

16.63

 

 

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

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(27.47)

16.77

25.67

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

(26.08)

26.63

39.33

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(5.45)

6.56

12.33

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.19)

0.19

0.63

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.24

0.17

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.34

1.49

1.22

 

 

 

 

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

30.000

30.000

30.000

Reserves & Surplus

87.412

103.990

82.327

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

117.412

133.990

112.327

 

 

 

 

Long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

23.382

26.983

Total borrowings

0.000

23.382

26.983

Debt/Equity ratio

0.000

0.175

0.240

 

 

 

 

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

194.379

98.842

78.855

 

 

(49.150)

(20.221)

 

 

 

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

194.379

98.842

78.855

Profit

49.891

16.579

(21.663)

 

25.67%

16.77%

(27.47%)

 

 

 

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

Yes

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

No

18

Major suppliers

No

19

Major customers

No

20

Banking Details

No

21

Banking facility details

No

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

Yes

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

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY 

 

CHANGE OF ADDRESS:

 

The registered office of the company has been shifted from 4th Floor, Parijat House, Manjrekar Lane, Off Dr. E Moses Road, Worli Naka, Mumbai – 400018, Maharashtra, India to present address w.e.f.10.07.2010

 

 

BACKGROUND

 

Reliance Commodities Limited was incorporated on 8 July 2005. The Company is licensed by the Forward Market

Commission to operate as commodity broker.

 

 

OPERATIONS:

 

MEMBERSHIP OF COMMODITY EXCHANGES

 

During the year, the Company has obtained the trading-cum-clearing membership of Universal Commodity Exchange Limited for which the in-principle approval from the Exchange is received. Approval of the Forward Markets Commission is awaited.

 

The Company has applied to Indian Commodity Exchange Limited for the surrender of their trading-cum-clearing membership. Approval of the Forward Markets Commission for the surrender of membership is awaited.

 

 

CONTINGENT LIABILITIES

 

Particulars

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

Collateral security deposit in favour of National Commodity and Derivatives Exchange Limited

100.000

101.500

Collateral security deposit in favour of Multi Commodity Exchange of India Limited

182.500

393.500

 

 

FIXED ASSETS:

 

·         Furniture and fixtures

·         Office equipment

·         Other Equipment’s

·         Computer Software

·         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.63.60

UK Pound

1

Rs.100.09

Euro

1

Rs.71.23

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ARC / IND

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

6

--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

 

50

 

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.