MIRA INFORM REPORT

Report No. :	507452.2
Report Date :	17.05.2018

IDENTIFICATION DETAILS

Name :	DELHI ELECTRICALS AGENCIES
Registered Office :	122/724, Shastri Nagar Main Road, Kanpur - 208005, Uttar Pradesh
Tel. No.:	91-512-2222914
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment :	2007
Capital Investment / Paid-up Capital :	INR 6.308 Million
IEC No.: [Import-Export Code No.]	Not Applicable (As informed by the management that firm does not have export and import)
PAN No.: [Permanent Account No.]	AALPC7641L
GSTN : [Goods & Service Tax Registration No.]	09AALPC7641L1ZC
TIN No.:	Not Divulged
Legal Form :	Sole Proprietary Concern
Line of Business :	Dealer and Distributors of electrical goods and switches. (Confirmed by management)
No. of Employees :	10 (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 18000 (INR in 1213059.60)
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a proprietorship concern established in the year 2007. It is a dealer and distributor of Electrical Goods and Switches. Mr. Ritesh Chawla (CEO) has claimed that the concern has achieved sales turnover of INR 169.6 million for the FY 2018 (which could not be verified). As per the available financial records of 2017, the subject has achieved 38.60% growth in its revenue as compared to the previous year revenue along with average profit margin of 1.91%. The rating takes into consideration the satisfactory financial profile of the concern marked by comfortable capital base along with average debt coverage indicators Business is active. Payment seems to be slow but correct. In view of aforesaid, the concern can be considered for business dealings at usual trade terms and conditions. Note: Site Visit was conducted at the given address and our executive has successfully traced the subject at the given address. At the premises our executive met Mr. Ritesh Chawla (CEO) and he confirmed that subject is situated on the given address and also provided visiting card. During the site visit, our executive enquired with vicinity (Manika Kapoor and Ms Deepali) and they confirmed that subject is situated on the given address from last 7 years. As per our executive’s observation, it is a 2 storey building and subject situated on the ground floor. Location was easy to find and locality appears to be commercial. Area seems to be downmarket. Area of premises is approximately 400 sq. ft. and 8 employees were sighted. Name board of the subject was sighted.

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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2018.

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 17.05.2018

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. Ritesh Chawla
Designation :	Chief Executive Officer
Contact No.:	91-9935533851
Date :	05.05.2018

LOCATIONS

Registered Office/Warehouse :	122/724, Shastri Nagar Main Road, Kanpur - 208005, Uttar Pradesh, India
Tel. No.:	91-512-2222914
Mobile No.:	91-9935533851 (Mr. Ritesh Chawla) 91-9935532532 (Mr. Gulshan Chawla)
Fax No.:	Not Available
E-Mail :	delhielectricalsagencies@gmail.com
Area:	400 (Sq. Ft.) (As per site visit)
Location :	Owned
Locality :	Commercial (As per site visit)

SOLE PROPRIETOR

Name :	Mr. Gulshan Chawla
Designation :	Proprietor
PAN No.:	AALPC7641L

KEY EXECUTIVES

Name :	Mr. Ritesh Chawla
Designation :	Chief Executive Officer

BUSINESS DETAILS

Line of Business :	Dealer and Distributors of electrical goods and switches. (Confirmed by management)
Products :	Electrical Goods and Switches
Brand Names :	Not Available
Agencies Held :	ANCHOR
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cheque and Credit (30/60 Days)
Purchasing :	Cheque and Credit (30 Days)

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers, Retailers

Reference :	Maha Vaishnov Electricals
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

10 (Approximately)

Bankers :

Banker Name :	HDFC Bank Limited
Branch :	Shastri Nagar, Kanpur – 208005, Uttar Pradesh, India
Person Name (With Designation) :	--
Contact Number :	91-9935903333 (Continuously ringing)
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 :	--

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
HDFC Bank Housing Loan	1.623	1.658
HDFC Bank (O/D) A/C	11.254	9.274
HDFC Bank Car Loan (Honda City)	0.567	0.743
HDFC Bank Car Loan (Innova)	0.000	0.338
Total	13.444	12.013

Auditors :

Name :

S. S Somani and Company

Chartered Accountants

Address :

Kanpur, Uttar Pradesh, India

Collaborators :

Not Available

Membership :

Not Available

Sister Concern :

Not Divulged

CAPITAL STRUCTURE

AS ON 31.03.2017

Particular	31.03.2017 (INR in million)
Proprietors Capital Account
Gulshan Chawla
Opening Balance	6.519
Add: I T Refund	0.001
Add: Net Profit	0.904
Add: Interest on PPF	0.023
Gas Subsidy	0.001
Interest on S.B. A/c	0.001
	7.449
Less: Drawings	(1.099)
LIC	(0.042)	6.308

FINANCIAL DATA

[all figures are INR Million]

Particulars	31.03.2018
Sales Turnover (Approximately)	169.600

The above information has been parted by Mr. Ritesh Chawla (Chief Executive Officer)

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017	31.03.2016
EQUITY AND LIABILITIES
1] Proprietors Capital		6.308	6.519
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		6.308	6.519
LOAN FUNDS
1] Secured Loans		13.444	12.013
2] Unsecured Loans		6.828	3.883
TOTAL BORROWING		20.272	15.896
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		26.580	22.415
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.744	3.051
Capital work-in-progress		0.000	0.000
INVESTMENT		1.470	1.041
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.602	18.604
	Sundry Debtors	15.968	5.222
	Cash & Bank Balances	0.103	0.156
	Other Current Assets	1.174	1.114
	Loans & Advances	2.192	2.161
Total Current Assets		36.039	27.257
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.001	8.720
	Other Current Liabilities	0.672	0.214
	Provisions	0.000	0.000
Total Current Liabilities		13.673	8.934
Net Current Assets		22.366	18.323
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		26.580	22.415

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	99.052	71.463
	Other Income	1.972	2.503
	TOTAL	101.024	73.966
Less	EXPENSES
	Cost of good sold	96.238	69.297
	freight and Charges	0.006	0.000
	Accounting charges	0.060	0.048
	Advertisement Expenses	0.020	0.016
	Audit Fee	0.015	0.013
	Computer Maintenance	0.012	0.013
	Conveyance Expenses	0.041	0.037
	Electricity Expenses	0.159	0.156
	Freight and Cartage (Outward)	0.016	0.007
	House and Water Tax	0.042	0.042
	Insurance	0.082	0.099
	Legal and Professional Charges	0.013	0.019
	Postage Expenses	0.004	0.003
	Printing and Stationery	0.031	0.022
	processing Charges	0.040	0.041
	Rent	0.420	0.415
	Repair and Maintenance	0.086	0.083
	Salaries	0.894	0.841
	Staff Welfare	0.024	0.017
	Telephone and Mobile Expenses	0.027	0.024
	VAT Audit Fee	0.006	0.006
	Vehicle Running and Maintenance Expenses	0.115	0.099
	TOTAL	98.351	71.298
	PROFIT/ (LOSS) BEFORE INTEREST, DEPRECIATION AND AMORTISATION	2.673	2.668
Less	FINANCIAL EXPENSES	1.279	1.375
	PROFIT / (LOSS) BEFORE, DEPRECIATION AND AMORTISATION	1.394	1.293
Less/ Add	DEPRECIATION/ AMORTISATION	0.490	0.535
	NET PROFIT/ (LOSS)	0.904	0.758

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Average Collection Days (Sundry Debtors / Income * 365 Days)	58.84	26.67
Account Receivables Turnover (Income / Sundry Debtors)	6.20	13.68
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	49.31	45.93
Inventory Turnover (Operating Income / Inventories)	0.16	0.14
Asset Turnover (Operating Income / Net Fixed Assets)	0.97	0.87

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.84	0.79
Debt Equity Ratio (Total Liability / Networth)	3.21	2.44
Current Liabilities to Networth (Current Liabilities / Net Worth)	3.25	1.97
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.44	0.47
Interest Coverage Ratio (PBIT / Financial Charges)	2.09	1.94

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016
Net Profit Margin ((PAT / Sales) * 100)	%	0.91	1.06
Return on Total Assets ((PAT / Total Assets) * 100)	%	2.25	2.42
Return on Investment (ROI) ((PAT / Networth) * 100)	%	14.33	11.63

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Current Ratio (Current Assets / Current Liabilities)	1.76	2.13
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.95	0.68
G-Score Ratio Financial (Networth / Total Assets)	0.16	0.21
G-Score Ratio Debt (Debts / Equity Capital)	3.21	2.44
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.76	2.13

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

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2016	31.03.2017
	INR In Million	INR In Million
Proprietors Capital	6.519	6.308
Reserves & Surplus	0.000	0.000
Net worth	6.519	6.308
Secured Loans	12.013	13.444
Unsecured Loans	3.883	6.828
Total borrowings	15.896	20.272
Debt/Equity ratio	2.438	3.214

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	71.463	99.052
		38.606

NET PROFIT MARGIN

Net Profit Margin	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	71.463	99.052
Profit	0.758	0.904
	1.06%	0.91%

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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	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	No
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 two years	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 :	DELHI ELECTRICALS AGENCIES
Address :	122/724, Shastri Nagar Main Road, Kanpur - 208005, Uttar Pradesh, India
Mobile No.:	91-99935533851
Email:	delhielectricalsagencies@gmail.com
Person to whom we met:	Mr. Ritesh Chawla Designation: Chief Executive Officer
Name Board:	Sighted
Location:	Easy
Landmark (If Any):	Near Mobile Tower
Total Floors of the building:	Ground + 2
Subject situated on:	Ground Floor
Locality:	Commercial
Area of Premises :	400 Sq. Ft.
Area:	Down Market
No. of Employees seen at Premises :	8
Visibility of Items:	Telephone Computers Office Equipment
Furniture items sighted:	Yes
Neighbour’s Interview:	Our executive enquired with vicinity (Manika Kapoor and Ms. Deepali - Mobile No.:91-8299209902) and they confirmed that subject is situated on the given address from last 7 years.
Proof of visit:	Visiting Card and Photograph

UNSECURED LOAN

PARTICULAR	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Unsecured Loan	6.828	3.883
Total	6.828	3.883

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 67.52
UK Pound	1	INR 91.48
Euro	1	INR 80.52

INFORMATION DETAILS

Information Gathered by :	POON
Analysis Done by :	VAR
Report Prepared by :	RKI

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.