MIRA
INFORM REPORT
|
Report Date : |
03.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ESSAR TELECOM RETAIL LIMITED |
|
|
|
|
Formerly Known As : |
ESSAR RETAIL LIMITED |
|
|
|
|
Registered Office : |
Essar House, P O Box 7945, 11 K K Marg, Mahalaxmi, Mumbai – 400034,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Date of Incorporation : |
22.03.2006 |
|
|
|
|
Com. Reg. No.: |
11-160647 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U51900MH2006PLC160647 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUME06487F |
|
|
|
|
Legal Form : |
Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business : |
Importers, Buyers, Sellers and Distributors in all kinds of telecom
related products including mobile handsets, other telecom apparatus, etc. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
|
|
|
|
|
Status : |
New Company |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a new company and in the process of establishing
itself. Directors are however
reported as experienced and respectable businessmen. Trade relations are reported as fair. No payment are available. The company can be considered for small to mediocre business dealings
with slight caution initially. |
LOCATIONS
|
Registered Office : |
Essar House, P O Box 7945, 11 K K Marg, Mahalaxmi, Mumbai – 400034,
Maharashtra, India |
|
Tel. No.: |
91-22-24950606 |
|
Fax No.: |
91-22-66601809 |
DIRECTORS
|
Name : |
Mr. Rajiv Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shankar Dey |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sreehari Iyer |
|
Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Essar Investments Limited |
|
950000 |
BUSINESS DETAILS
|
Line of Business : |
Importers, Buyers, Sellers and Distributors in all kinds of telecom
related products including mobile handsets, other telecom apparatus, etc. |
|
|
|
|
Brand Names : |
Nokia Motorola Sony Ericsson Samsung Reliance Mobile Tata Indicom |
GENERAL
INFORMATION
|
No. of Employees : |
About 100 |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Associates : |
Essar Group |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
950000 |
Equity Shares |
Rs. 10/- each |
Rs. 9.500 millions |
LOCAL AGENCY
FURTHER INFORMATION
History :
Subject was incorporated on 22nd March, 2006 under the name
and style ‘Essar Retail Limited’. The
name was changed to the present name w.e.f. 29th May, 2006.
Press Releases
Essar set to pioneer a new consumer experience in telecom retail.
Plans 2500 outlets of 'The MobileStore' across 600 cities
February 15, 2007
The Essar Group is set to revolutionize the telecom retail market with
the introduction of "The MobileStore", India's first national chain
of multi-brand and multi-service outlets in the telecom retail space. Essar
Telecom Retail Limited, an Essar Group company has aggressively worked on
introducing a pan-Indian network of retail telecom outlets, with a world class
shopping environment, offering state of art technology in telecom solutions and
a host of unique value-added services, all for an unmatched customer
experience.
A first of its kind, Essar's "The MobileStore" will afford the
discerning Indian consumer choice of the widest and most comprehensive range of
mobile phones with special offers from all the leading brands. Besides the
widest range of mobile phones, The MobileStore will thus offer Indian consumers
across India a complete telecom solutions right from mobile phone purchase to
the choice of service operators (both prepaid and post-paid connections), and
services like bill collections, handset exchange etc. The stores will also
offer mobile accessories and Value Added Services including the latest ring
tones, wallpapers and games. Not to mention the prompt handset repair services,
available not only in the city of purchase but also at any of The MobileStore
locations across the country.
Forty stores have been launched and are serving customers across Mumbai,
Delhi, Kolkata, Hyderabad, Chennai, Bangalore and Ahmedabad.
Mr Rajiv Agarwal, CEO, Essar Telecom Retail Limited, who is spearheading
the telecom retail initiative, said, "They would ensure a world class
consumer retail experience to customers. They are encouraged by the growth in
the Indian economy; they also believe that India is the fastest growing market
for the organized retail sector. They believe that the Indian consumer has an
evolving understanding and desires the latest in technology. Their target
audience are among the age group of 18 to 45 years. They are certain that The
MobileStore will provide a one-of-its-kind experience to the consumer."
Essar Telecom Retail has planned a phased unveiling of "The
MobileStore" concept pan-India. Phase I should see Essar launch a network
of 150 stores in the top 11 cities. Essar Telecom Retail expects this number to
increase to over 2500 stores in the next 3 years across 600 cities, thus
covering virtually every major town in every state across India. The company
has envisaged The MobileStore in three formats: Large - 1000-1500 square feet,
Medium- 800-1000 square feet and compact 200-500 and shop in shops in located
in large retail formats and malls.
In an effort to help consumers make informed decisions, 'The
MobileStore' is equipped with trained professionals. Essar Telecom Retail has
undertaken an extensive training programme for its employees giving them
in-depth knowledge of the products and brands available at the store, thereby
allowing them to provide the right kind of guidance to help the customer in
their buying process.
Keeping in mind the consumer behaviour, The MobileStore has gone a step ahead
and categorized its mobile device offerings into four key consumer segments:
Business, Lifestyle, Fun and Value. Categorization of handsets has been broadly
based on features such as FM, Internet, Cameras, etc across various price
bands. What's more, all this is provided in a fun environment, where consumers
can download wacky ringtones games, songs etc from the Value Added Services
kiosk available in each store.
Among the mobile brands that are available at the stores are Nokia,
Motorola, Sony Ericsson, Samsung, Reliance Mobile and Tata Indicom. Essar
Telecom Retail has also tied up with all leading service operators including
Airtel, Hutch, BPL, Idea, Aircel, Reliance and Tata Indicom. Besides a wide
range of mobile accessories, the outlets will also offer digital cameras, i
Pods, Xbox and Tata Sky.
About Essar:
The Essar Group is one of India's largest corporate houses, with
interests spanning the core and infrastructure sectors of industry - steel,
energy, power, Communications, shipping & logistics and projects. It has an
asset base in excess of US $ 6 billion (Rs. 270000 millions). It employs 15,000
people and has offices in over 50 locations world-wide.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.13 |
|
UK Pound |
1 |
Rs.85.36 |
|
Euro |
1 |
Rs.57.64 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
18 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|