MIRA
INFORM REPORT
|
Report Date : |
20TH
May, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
GREAT
WHOLESALE CLUB LIMITED |
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|
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Registered Office : |
Spencer
Plaza, IV Floor, 769, Anna Salai, Chennai – 600002, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
22nd
November, 2000 |
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Com. Reg. No.: |
18-46165 |
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CIN No.: [Company
Identification No.] |
U51229TN2000PLC046165 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEG02391E |
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Legal Form : |
A Closely Held Public Limited Liability Company. Company and Subsidiary of Spencer &
Company Limited, Chennai |
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Line of Business : |
Company
is in engaged in Food and Non Food Industry |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
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Status : |
Moderate
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a part of R P Goenka Group. Directors are reported as experienced,
respectable and resourceful industrialists. Their trade relations are fair.
Profit margin is under severe pressure. The company has some accumulated
losses. However,
it can be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Spencer
Plaza, IV Floor, 769, Anna Salai, Chennai – 600002, Tamilnadu |
DIRECTORS
|
Name : |
Mr.
Sanjiv Goenka |
|
Designation : |
Chairman
|
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|
Name : |
Mr.
Raghu Pillai |
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Designation : |
Managing
Director |
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|
Name : |
Mr. Dilip R Mehta |
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Designation : |
Director
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|
Name : |
Mr. Oscar Braganza |
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Designation : |
Director
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|
Name : |
Mr. P K Mohapatra |
|
Designation : |
Director
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|
Name : |
Mr. Sudhir Sahgal |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name
: |
Ms.
Kriben Moodliar |
|
Designation
: |
Chief
Executive |
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Date
of Birth/Age : |
60
Years |
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Qualification
: |
Business
Diploma in Management Science and Administration |
|
Experience
: |
35
Years |
|
Date
of Appointment : |
1st
February, 2001 |
BUSINESS DETAILS
|
Line of Business : |
Company
is in engaged in Food and Non Food Industry |
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|
|
|
Products : |
Food
and Non Food |
GENERAL
INFORMATION
|
No. of Employees : |
2000 |
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Bankers : |
-- |
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|
Facilities : |
Secured
Loan Term
Loan Term
Loan from Bank - Rs. 50.387 Hypothecation by way of an exclusive first
charge on all the curent assets in the form of Stocks in trade,work in
progress, Raw materials, books debts and all other current assets present and
future at the stores at Mumbai, Hyderabad and Vishakapatnam belonging to the
Borrower. Hypothecation by 'way of an exclusive first charge over all the collections (cash and non-cash) from Vishakapatnam store of the Borrower. Hypothecation by way of an exclusive residual
charge subject to a first charge in favour of IDFC over all the collections
(cash and non-cash) from the Mumbai and Hyderabad stores of the Borrower. Hypothecation by way of an exclusive first
charge on movable properties of the borrower including the borrower's movable
Plant and Machinery, Machinery, Spares, Tools & Accessories and other
movables, both present and future at the Visakhapatnam Store
of the borrower. From
other - Rs. 113.750 Cash
Credit and Other Facilities - Rs.
0.285 Total
– Rs. 164.422 Millions Unsecured
Loan From
other Holding Company – Rs. 90.000 Millions |
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Banking Relations : |
-- |
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Auditors : |
Price
Waterhouse Charetered
Accountant |
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Associates/Subsidiaries : |
v
Music
World Entertainment Limited v
RPG
Guardian Private Limited v
Foodworld
Supermarkets Limited Subsidiaries
v
Spencer
International Hotels Limited v
Anusha
Air Travels Limited v
Music
Travel Services Limited v
Speners
Airline Services Limited |
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|
|
|
Holding Company |
v
Spencer
and Company Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
250,00,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 250.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
146,50,160 |
Equity
Shares |
Rs. 10/- Each |
Rs. 146.502 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
146.502 |
146.502 |
102.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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|
4] (Accumulated Losses) |
(175.046) |
(84.420) |
(53.100) |
|
|
NETWORTH |
(28.544) |
62.082 |
49.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
164.422 |
120.750 |
76.300 |
|
|
2] Unsecured Loans |
90.000 |
0.000 |
0.000 |
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|
TOTAL BORROWING |
254.422 |
120.750 |
76.300 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
225.878 |
182.832 |
125.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
169.107 |
135.399 |
65.900 |
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Capital work-in-progress |
10.190 |
6.956 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
10.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
73.054
|
71.264 |
33.600 |
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|
Sundry Debtors |
13.444
|
9.632 |
6.800 |
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|
Cash & Bank Balances |
30.995
|
14.084 |
15.700 |
|
|
Other Current Assets |
0.595
|
2.060 |
0.000 |
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|
Loans & Advances |
75.545
|
58.897 |
45.700 |
|
Total Current Assets |
193.633
|
155.937 |
101.800 |
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|
Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
145.118
|
113.807 |
52.500 |
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|
Provisions |
1.934
|
1.653 |
0.800 |
|
Total Current Liabilities |
147.052
|
115.460 |
53.300 |
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|
Net Current Assets |
46.581
|
40.477 |
48.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.300 |
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TOTAL |
225.878 |
182.832 |
125.700 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
1384.594 |
956.649 |
799.900 |
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Profit/(Loss)
Before Tax |
(90.626) |
(31.353) |
(10.200) |
|
Provision
for Taxation |
0.000 |
0.000 |
0.000 |
|
Profit/(Loss)
After Tax |
(90.626) |
(31.353) |
(10.200) |
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Import
Value |
4.688 |
NA |
NA |
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Total
Expenditure |
1475.220 |
988.002 |
685.500 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
9.87 |
1.70 |
2.32 |
|
Long Term Debt Equity Ratio |
9.04 |
1.65 |
2.32 |
|
Current Ratio |
1.33 |
1.53 |
1.58 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
14.72 |
22.75 |
10.09 |
|
Inventory |
18.29 |
17.30 |
23.39 |
|
Debtors |
114.26 |
110.01 |
125.02 |
|
Interest Cover Ratio |
(3.14) |
(1.91) |
(0.13) |
|
Operating Profit Margin (%) |
(3.43) |
(0.99) |
(1.08) |
|
Profit Before Interest and Tax Margin (%) |
(5.21) |
(2.27) |
(0.16) |
|
Cash Profit Margin (%) |
(5.08) |
(2.18) |
(0.10) |
|
Adjusted Net Profit Margin (%) |
(6.87) |
(3.46) |
(1.34) |
|
Return on Capital Employed (%) |
(33.26) |
(13.22) |
(1.18) |
|
Return on Net
Worth (%) |
(436.63) |
(52.60) |
(33.12) |
LOCAL AGENCY
FURTHER INFORMATION
REVIEW OF OPERATIONS
The company has achieved sales of Rs. 1384.600
Millions during the year representing a growth of over 44% compared to the
previous year's sales. The company has made an operating loss of Rs. 52.000
Millions including one time write off of Rs. 22.000 Millions towards fixed
assets and ICD along with interest. The company opened a hypermarket at
Vishakapatnam in Andhrapradesn in September 2004 and has been receiving
satisfactory response from the customers. The company has also tied up various
properties in Metros and other cities for setting up new hypermarkets in the
coming year. The company has taken major initiatives of consolidating all its
retail businesses under one company to have synergy and optimize the backend
operation costs. Consequent to the decision of RPG Group to divest its
investments in the Food World supermarkets Limited, the company has acquired
and merged with the company 48 food stores of Food World Supermarkets Limited.
Further the company is also working on a plan to integrate music division of
Music World Entertainment Limited with the company in the
current year. The Directors are confident of
achieving significant growth in the sales revenue and much better line
consequent to the significant growth in the trading areas in the years to come.
Fixed Assets
v Leased Hold
v Plant & Machinery
v Computer
v Motor
v Furniture & Fixture
Transactions with Related Parties:
|
Nature of transactions |
Holding Company |
Associate Company |
Fellow Subsidiaries |
|
Sale of Goods |
-- |
3.354 |
-- |
|
Purchase of Goods |
-- |
0.475 |
-- |
|
Rent paid |
1.450 |
-- |
-- |
|
Rent collected |
-- |
2.500 |
-- |
|
Buying Income |
-- |
-- |
-- |
|
Interest collected |
-- |
-- |
0.092 |
|
Employee reimbursement |
-- |
-- |
-- |
|
Loan given |
-- |
-- |
3.000 |
|
Share Capital |
-- |
-- |
-- |
|
Unsecured Loans |
90.000 |
-- |
-- |
|
Closing Balance – Debit Closing Balance - Credit |
-- |
1.439 |
-- |
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.45.46 |
|
UK
Pound |
1 |
Rs.85.94 |
|
Euro |
1 |
Rs.58.32 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
- |
|
--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 |
|
TOTAL |
|
32 |
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 |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
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 |