MIRA INFORM REPORT

Report No. :	314743
Report Date :	28.03.2015

IDENTIFICATION DETAILS

Name :	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED
Registered Office :	414, Star Plaza, Jasani Road, Rajkot – 360001, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.03.1994
Com. Reg. No.:	04-034664
Capital Investment / Paid-up Capital :	Rs.120.000 Million
CIN No.: [Company Identification No.]	U51100GJ1994PTC034664
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACE2476K
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Luxury Products like Watches, Writing Instruments etc.
No. of Employees :	Not Available

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

Maximum Credit Limit :	USD 7900000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	-- (Mattered converted into A/13115/2014)
Comments :	Subject is an established company having moderate track. The company has incurred a loss from its operations during 2014. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings 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.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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 31-03-2014.

LOCATIONS

Registered Office :	414, Star Plaza, Jasani Road, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2477982
Mobile No.:	91-9427724927 (Mr. Rajesh Shah)
Fax No.:	91-281-2477980
E-Mail :	mbrjt@entrackonline.com rajesh.s@entrackonline.com info@entrackltd.com
Area :	1500 Sq. Ft.
Location :	Owned
Corporate Office :	50, Sarvoday Industrial Compound, Opposite Paper Box, Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India

DIRECTORS

As on 30.09.2014

Name :

Mr. Pankaj Rasiklal Shah

Designation :

Director

Address :

Kitabghar, Shroff Road, Rajkot – 360001, Gujarat, India

Date of Birth/Age :

62 Years

Qualification :

B.A., DERE

Experience :

18 Years

Date of Appointment :

04.04.1995

PAN No.:

AESPS0945L

DIN No.:

00467330

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	U51100GJ1994PTC034664	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED	Director	04/04/1995	04/04/1995	-	Active	NO
2	U51909GJ2004PTC044526	ENTRAC EXIM PRIVATE LIMITED	Director	28/07/2004	28/07/2004	-	Active	NO
3	U51109GJ2007PTC051852	ENTRACK HERITAGE PRODUCTS PRIVATE LIMITED	Director	28/09/2007	28/09/2007	-	Active	NO
4	U15400GJ2010PTC061567	ENTRACK ORGANIC HAUS PRIVATE LIMITED	Director	13/07/2010	13/07/2010	-	Active	NO

Name :

Mr. Dilip Rasiklal Doshi

Designation :

Director

Address :

28, Mountview Clsoe, London NW 11 – 7HG UK

Date of Birth/Age :

68 Years

Qualification :

B. Com

Experience :

40 Years

Date of Appointment :

04.04.1995

PAN No.:

ADQPD7938M

DIN No.:

01317373

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	U51100GJ1994PTC034664	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED	Director	04/04/1995	04/04/1995	-	Active	NO
2	U15400GJ2010PTC061567	ENTRACK ORGANIC HAUS PRIVATE LIMITED	Director	30/09/2011	24/09/2010	-	Active	NO
3	U51109GJ2007PTC051852	ENTRACK HERITAGE PRODUCTS PRIVATE LIMITED	Whole-time director	24/09/2010	24/09/2010	-	Active	NO

Name :

Mr. Nayan Dilip Doshi

Designation :

Additional Director

Address :

Flat-1, Samruddhi, 22 Altamount Road, Kemps Corner, Mumbai - 400026, Maharashtra, India

Date of Birth/Age :

06.10.1978

Date of Appointment :

25.10.2013

PAN No.:

ASMPD2637C

DIN No.:

06523030

KEY EXECUTIVES

Name :	Mr. Rajesh Shah
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares	% of Holding
Nayan D. Doshi and Izabela N. Doshi	1500000	12.50
Dilipbhai Rasiklal Doshi	7100000	59.17
Kalindi D. Doshi	1900000	15.83
Vishakha D. Doshi	1500000	12.50
Total	12000000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Luxury Products like Watches, Writing Instruments etc.
Products :	Watches and Writing Instruments
Brand Names :	--
Agencies Held :	--
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· Indusind Bank, Nariman Point, Mumbai, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Rupee term loans from banks	1.383	0.000
Rupee term loans from others	0.000	0.962
SHORT TERM BORROWINGS
Loans repayable on demand from banks	358.960	402.733
Total	360.343	403.695

Auditors :
Name :	Kalaria and Sampat Chartered Accountants
Address :	302-305, Star Avenue, Dr. Radhakrishna Road, Opposite Rajkumar College, Rajkot – 360001, Gujarat, India
PAN No.:	AACFK2045F
Memberships :	--
Collaborators :	--
Associates :	· Entrack Heritage Products Private Limited · Entrack Organic Haus Private Limited · Kitabghar Printery

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 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	120.000	120.000	120.000
(b) Reserves & Surplus	158.083	170.339	155.460
(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)	278.083	290.339	275.460
(3) Non-Current Liabilities
(a) long-term borrowings	2.383	9.212	166.490
(b) Deferred tax liabilities (Net)	13.984	25.848	25.080
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	16.367	35.060	191.570
(4) Current Liabilities
(a) Short term borrowings	564.024	572.023	387.500
(b) Trade payables	191.280	109.074	178.102
(c) Other current liabilities	73.407	60.177	70.777
(d) Short-term provisions	5.322	13.971	4.964
Total Current Liabilities (4)	834.033	755.245	641.343
TOTAL	1,128.483	1,080.644	1,108.373
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	260.867	252.738	265.461
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	4.237	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	97.275	88.413	94.845
(e) Other Non-current assets	16.174	47.488	79.445
Total Non-Current Assets	374.316	392.876	439.751
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	494.851	494.090	553.433
(c) Trade receivables	53.481	66.512	46.708
(d) Cash and cash equivalents	51.687	49.884	46.214
(e) Short-term loans and advances	154.148	77.282	22.267
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	754.167	687.768	668.622
TOTAL	1,128.483	1,080.644	1,108.373

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		1,051.288	1,110.864	955.872
		Other Income		11.013	24.855	20.511
		TOTAL (A)		1,062.301	1,135.719	976.383
Less	EXPENSES
		TOTAL (B)		936.194	943.949	791.236
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			126.107	191.770	185.147
Less	FINANCIAL EXPENSES (D)			92.263	114.991	142.970
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			33.844	76.779	42.177
Less	DEPRECIATION/ AMORTISATION (F)			53.596	54.311	30.310
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(19.752)	22.468	11.867
Less	TAX (H)			(7.497)	7.590	4.130
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(12.255)	14.878	7.737
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			163.890	149.012	141.275
	BALANCE CARRIED TO THE B/S			151.635	163.890	149.012
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	16.110	23.593	0.270
	TOTAL EARNINGS			16.110	23.593	0.270
	IMPORTS
			Import of Goods	537.595	356.644	356.644
			Import of Furniture / POS Material	21.538	13.370	13.370
	TOTAL IMPORTS			559.133	370.014	370.014
	Earnings / (Loss) Per Share (Rs.)				1.24	0.64

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(1.17)	1.34	0.81
Operating Profit Margin (PBDIT/Sales)	(%)	12.00	17.26	19.37
Return on Total Assets (PBT/Total Assets}	(%)	(1.75)	2.09	1.07
Return on Investment (ROI) (PBT/Networth)		(0.07)	0.08	0.04
Debt Equity Ratio (Total Debt /Networth)		2.04	2.00	2.01
Current Ratio (Current Asset/Current Liability)		0.90	0.91	1.04

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	120.000	120.000	120.000
Reserves & Surplus	155.460	170.339	158.083
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	275.460	290.339	278.083
Long Term borrowings	166.490	9.212	2.383
Short Term borrowings	387.500	572.023	564.024
Total borrowings	553.990	581.235	566.407
Debt/Equity ratio	2.011	2.002	2.037

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	955.872	1,110.864	1,051.288
		16.215	(5.363)

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	955.872	1,110.864	1,051.288
Profit	7.737	14.878	(12.255)
	0.81%	1.34%	(1.17%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Loans and advances from directors	1.000	8.250
SHORT TERM BORROWINGS
Loans repayable on demand from banks	4.095	9.290
Intercorporate borrowings	200.969	160.000
Total	206.064	177.540

OPERATIONS:

During the year, the company reported marginally lower total revenue of Rs.1051.287 lacs as against Rs.1110.864 lacs in the previous year. This along with higher employees costs and lower other income has led to the company reporting a loss of Rs.12.255 lacs as against a net profit of Rs.14.878 lacs in the previous year.

TERMINATION OF MONTBLANC BUSINESS:

The company has been one of the Pioneers in the luxury goods segment bringing into India the world renowned International Luxury Writing instrument Brand Montblanc in the year 1997. After more than 15 years of relationship, Montblanc has decided to terminate the Distribution Agency.

The company has received the drafts of the termination of distribution agreement and asset purchase agreement sent by Montblanc / Richemont but the same has been resented by the Company's Chairman Mr. Dilip Doshi as the goodwill offered for the business and the valuation offered for the assets of the company have been found quite unfair and unreasonable. The company has sought legal opinion to challenge the purported termination of the distribution agreement and asset purchase agreement and also to claim financial losses.

Meanwhile y our Directors have been endeavoring to explore the potential and opportunities to diversify the business of the company by bringing into India other world class Brands for distribution in the Indian Territory.

MERGER:

During the year, an application has been submitted to the Honorable High Court of Gujarat at Ahmedabad for the Scheme of Amalgamation of the company and Entrack Organic Haus Private Limited. Entrack Organic Haus Private Limited is also promoted by the Chairman Mr. Dilip Doshi and common shareholders. It is engaged in importing and selling Organic Food Products

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10424853	13/05/2009	140,000,000.00	Indusind Bank Limited	Indusind House 425, D B Marg, Opera House, Mumbai, Maharashtra - 400004, India	B62972021
2	10413536	04/04/2009	140,000,000.00	Indusind Bank Limited	Indusind House 425, D B Marg, Opera House, Mumbai, Maharashtra - 400004, India	B62972195
3	90108133	19/07/2012 *	690,000,000.00	HDFC Bank Limited	HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	B44999555

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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 records 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.62.61
UK Pound	1	Rs.92.95
Euro	1	Rs.68.15

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--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	YES
--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.