MIRA INFORM REPORT

Report No. :	498920
Report Date :	26.03.2018

IDENTIFICATION DETAILS

Name :	DIGITAL WORLD
Registered Office :	Flat No. 202-A, 2nd Floor, K P Towers, Eluru Road, Seetharampuram, Vijayawada-520002, Andhra Pradesh
Mobile No.:	91-9989312666 (Mr. Yashpal)
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment :	1998
Capital Investment / Paid-up Capital :	INR 6.912 Million
IEC No.: [Import-Export Code No.]	Not Applicable (As informed by the management that firm does not have export and import)
GSTN : [Goods & Service Tax Registration No.]	37AADFD5349Q1ZU
TIN No.:	Not Divulged
PAN No.: [Permanent Account No.]	AADFD5349Q
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Trader and Distributor of computer hardware and peripherals. [Confirmed by management]
No. of Employees :	60 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 20000 (INR IN 1297910.00)
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a partnership firm established in the year 1998 and it is a trader and distributor of computer hardware and peripherals. As per available financials of March 2017, the subject has achieved a sound sales turnover of INR 171.97 million from its operations and has reported minimal profit margin of 0.49%. Rating takes into consideration the subject’s established track record of business operations along with satisfactory capital base and average liquidity position. However, rating strength is partially offset by excess of borrowings of the subject. Payments seems to be slow but correct. In view of aforesaid, the subject can be considered for business dealings at usual trade terms and conditions. Note: Site visit was conducted at the given address which you have provided. Our executive has successfully traced the subject at the given address. At the premises, our executive met Mr. Yashpal (Manager) and he provided his contact details. (09989312666) As per our executive’s observation, it is a 5 storey building and subject is situated on 2nd floor. Area of the premises is 1,000 SQ FT and 3 employees were sighted at the premises. Location is easy to find and locality seems to be commercial. Area seems to be upmarket. During the visit, our executive met with neighbour company (Sri Suryateja Constructions and Sri Annadatha Agritech) and they claimed that the subject exists on the given address. Name board of the subject was sighted at the given address.

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 26.03.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY

Name :	Mr. Yashpal
Designation :	Manager
Contact No.:	91-9989312666
Date :	24.03.2018

LOCATIONS

Registered Office :	Flat No. 202-A, 2nd Floor, K P Towers, Eluru Road, Seetharampuram, Vijayawada-520002, Andhra Pradesh, India
Tel. No.:	Not Available
Mobile No.:	91-9989312666 (Mr. Yashpal)
Fax No.:	Not Available
E-Mail :	ps@digitalworldpc.com
Location :	Owned
Locality :	Commercial
Showroom :	Shop No. 202, Ground Floor, K P Tower, Surya Tower, Eluru Road, Near Kanaka Durga Theater, Seetharampuram, , Vijayawada-520002, Andhra Pradesh, India
Area:	1000 Sq. Ft (As per Site Visit)
Locality :	Commercial (As per Site Visit)

PARTNERS

Name :	Mr. S D Radha Krishna
Designation :	Partner
Name :	Mr. Srinivasa Rao Panchumarthi
Designation :	Partner
Date of Birth/age:	02.02.1972
PAN No.:	AIXPP6911C

KEY EXECUTIVES

Name :	Mr. Yashpal
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Trader and Distributor of computer hardware and peripherals. [Confirmed by management]
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	L/C, Advance Payment, Cheque and Others (RTGS)
Purchasing :	L/C, Advance Payment, Cheque and Others (RTGS)

GENERAL INFORMATION

Suppliers :

• Bulzertech
• Mukesh Infoserve
• Rashi Peripherals Private Limited
• Sri Vijayawada Distributors
• SVS Technologies
• Sai Computers
• Pactek Solutions
• P L Computers
• OM Art Print
• Srikar Technologies
• S R Impex
• Compuage Infocom Limited
• Vijayaxmi Infotech

Reference :	Abacus Peripherals Private Limited
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Wholesalers and Retailers

• Malineni Womens Engineering College
• Keshava Reddy School
• The Cotton Corporation of India Limited
• The Joint Collector
• Sri Ram Technologies
• Jacob
• Vedanta Hospital
• Blue Dard Express
• SW Hostels
• Anjaneya Jewellery
• Cipla Limited
• CIST Infrastructure

Reference :	K L University
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

60 (Approximately)

Bankers :

Banker Name :	City Union Bank Limited
Branch :
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

• Standard Chartered Bank
• Yes Bank
• HDFC Bank

Facilities :

(INR In Million)

SECURED LOAN	As on 31.03.2017
City Union Bank Limited – CCOD A/c No. 33739	19.067
Standard Chartered Bank A/c No. 22205411238	4.624
Yes Bank – Car Loan ALN012400022844	0.224
HDFC Bank – Car Loan – 34950103	0.700
Total	24.615

Auditors :
Name :	Hanumaiah and Company Chartered Accountants
Membership No:	201719
Collaborators :	Not Available
Membership :	Not Available
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2017

Name of the partner	Share of profit	Opening balance as on 01.04.2016	Additions	Withdrawals	Remuneration	Net profit	Balance as on 31.03.2017
S D Radha Krishna	65.00%	3.453	1.896	2.572	0.850	0.544	4.171
Srinivasa Rao Panchumarthi	35.00%	1.972	0.842	1.215	0.850	0.293	2.741
Total		5.425	2.738	3.787	1.700	0.837	6.912

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017
EQUITY AND LIABILITIES
1] Share Capital		6.912
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		6.912
LOAN FUNDS
1] Secured Loans		24.615
2] Unsecured Loans		2.366
TOTAL BORROWING		26.981
DEFERRED TAX LIABILITIES		0.000
TOTAL		33.893
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]
Capital work-in-progress		4.555
		0.000
DEPOSITS AND INVESTMENT
DEFERREX TAX ASSETS		6.360
		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.578
	Sundry Debtors	50.703
	Cash & Bank Balances	1.827
	Other Current Assets	3.981
	Loans & Advances	0.170
Total Current Assets		68.259
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.712
	Other Current Liabilities and Provisions	0.897
Total Current Liabilities		46.609
Net Current Assets		21.650
MISCELLANEOUS EXPENSES		1.328
TOTAL		33.893

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017
	SALES
	Income	171.970
	Other Income	23.748
	TOTAL	195.718
Less	EXPENSES
	Cost of Materials Consumed	155.802
	Input tax and tax paid	9.278
	Service charges paid	3.911
	Service tax input and tax paid	1.471
	Freight and Cartage	0.193
	Administrative expenses	20.789
	TOTAL	191.444
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	4.274
Less	FINANCIAL EXPENSES	2.348
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1.926
Less/ Add	DEPRECIATION/ AMORTISATION	0.698
	PROFIT/ (LOSS) BEFORE TAX	1.228
Less	TAX	0.392
	PROFIT/ (LOSS) AFTER TAX	0.836

Particulars	31.03.2016
Sales Turnover (Approximately)	160.000

The above information has been parted by Mr. Yashpal Manager

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017
Average Collection Days (Sundry Debtors / Income * 365 Days)	107.62
Account Receivables Turnover (Income / Sundry Debtors)	3.39
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	107.09
Inventory Turnover (Operating Income / Inventories)	0.37
Asset Turnover (Operating Income / Net Fixed Assets)	0.94

LEVERAGE RATIOS

PARTICULARS	31.03.2017
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.91
Debt Equity Ratio (Total Liability / Networth)	3.90
Current Liabilities to Networth (Current Liabilities / Net Worth)	7.09
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.66
Interest Coverage Ratio (PBIT / Financial Charges)	1.82

PROFITABILITY RATIOS

PARTICULARS		31.03.2017
Net Profit Margin ((PAT / Sales) * 100)	%	0.49
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.04
Return on Investment (ROI) ((PAT / Networth) * 100)	%	12.09

SOLVENCY RATIOS

PARTICULARS	31.03.2017
Current Ratio (Current Assets / Current Liabilities)	1.52
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.29
G-Score Ratio Financial (Networth / Total Assets)	0.09
G-Score Ratio Debt (Debts / Equity Capital)	3.90
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.52

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

FINANCIAL ANALYSIS

[all figures are INR Million]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	160.000 (Approximately)	171.970
		7.481

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	Yes
5	Buyer visit details	Yes
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	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	Yes
17	Details of sister concerns	No
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	No
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last one year	Yes
30	Major shareholders, if available	No
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

OBSERVATION POINTS

Name of Company :	DIGITAL WORLD
Address :	Shop No. 202, Ground Floor, K P Tower, Surya Tower, Eluru Road, Near Kanaka Durga Theater, Seetharampuram, Vijayawada-520002, Andhra Pradesh, India
Mobile No.:	91-9989312666
Person to whom we met:	Name: Mr. Yashpal Designation : Manager
Name Board :	Sighted
Location:	Easy
Landmark (If Any):	Signal
Total Floors of the building:	5 Floors
Subject situated on:	2^nd Floor
Locality:	Commercial
Area of premises :	1000 Sq. Ft
Area :	Upmarket
No. of employees seen at premises:	3
Visibility of Items:	· Telephone · Fax Machine · Computers · Air Conditioner · Office Equipment · Xerox Machine
Furniture items sighted :	Table and Chairs
Sister Concern (Other names on name board):	No
Neighbour’s interview :	Name of Company: Sri Suryateja Constructions Contact person name : Mr. Bhanu Name of Company: Sri Annadatha Agritech Contact person name : Mr. Ravi
Neighbour’s overview :	Existence confirmed
Proof of visit:	Photographs

UNSECURED LOANS

(INR In Million)

Particulars	As on 31.03.2017
B V Murali Krishna	(0.003)
D F Muralidhar	(0.170)
Bajaj Finance – 409PSB08065787	0.747
American Express Card 51002	(0.010)
American Express Card Platimn Corp	0.002
Margadarsi Chit Funds (Private) Limited-LTOVP – 4.100 -5.000 Million	1.800
Total	2.366

FIXED ASSETS

• Furniture and Fittings
• Water Cooler
• Fixed Camera
• Electrical Fittings
• Plant and Machinery
• A C Machine
• Cameras
• Motor Cycle
• Laptop HP
• Computer and Printer

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 records 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	INR
US Dollar	1	INR 65.13
UK Pound	1	INR 91.96
Euro	1	INR 80.35

INFORMATION DETAILS

Information Gathered by :	SHL
Analysis Done by :	VIV
Report Prepared by :	KVT

SCORE FACTORS

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.