MIRA
INFORM REPORT
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Report Date : |
09.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
RELIANCE WEBSTORE LIMITED |
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Formerly Known As : |
RELIANCE WEBSTORE PRIVATE LIMITED |
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Registered Office : |
E Block, Dhirubhai Ambani Knowledge City, Opposite Koparkhairane, Railway Station, Thane Belapur Road, Navi Mumbai-400709, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.08.2000 |
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Com. Reg. No.: |
11-128101 |
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CIN No.: [Company
Identification No.] |
U72900MH2000PLC128101 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR01042G |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Providing Service for Broadband Application. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
E Block, Dhirubhai Ambani Knowledge City, Opposite Koparkhairane, Railway Station, Thane Belapur Road, Navi Mumbai-400709, Maharashtra, India |
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Tel. No.: |
91-22-30386286 |
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Fax No.: |
91-22-30376622 |
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E-Mail : |
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Corporate Office : |
Ground Floor, Chitrakoot, Shree Ram Mills Premises, Ganpatrao Kadam Marg, Worli, Mumbai – 400 013, Maharashtra, India |
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Tel. No.: |
91-22-24907094 |
DIRECTORS
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Name : |
Mr. Rohit Chhanalal Shah |
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Designation : |
Director |
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Address : |
A 502, Surendra Park, Ram Gully, Opp. Bank of Baroda, Kandivli (West), Mumbai – 400 067, Maharashtra |
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Date of Birth/Age : |
04.06.1954 |
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Date of Appointment : |
04.08.2000 |
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Date of Ceasing : |
23.07.2005 |
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Name : |
Mr. Mangal Krishnarao Kulkarni |
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Designation : |
Director |
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Address : |
B 26, Bhatia Bhuvan, Gokhale Road, Dadar (West), Mumbai – 400 028, Maharashtra |
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Date of Birth/Age : |
20.08.1968 |
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Date of Appointment : |
04.08.2000 |
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Name : |
Mr. Ajay T Baijal |
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Designation : |
Director |
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Address : |
Flat G, Falcon Crest, 139, 4th Main, Defence Colony, Indira
Nagar, Bangalore-560038, Karnataka |
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Date of Birth/Age : |
21.11.1957 |
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Date of Appointment : |
23.07.2005 |
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Name : |
Mr. Inderpal Singh Bajaj |
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Designation : |
C-1503/1504, Chaitanya Towers, Appasaheb Marathe Marg, Prabhadevi,
Mumbai-400025, Maharashtra |
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Address : |
01.09.1963 |
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Date of Appointment : |
23.07.2006 |
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Name : |
Mr. Sarup H Chowdhary |
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Designation : |
Director |
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Address : |
2B, Shree Vijya Bhavan, 8, Altamount Road, Mumbai-400026, Maharashtra |
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Date of Birth/Age : |
09.03.1945 |
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Date of Appointment : |
23.07.2005 |
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Name : |
Mr. Tarun G Jhunjhunwala |
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Designation : |
Director |
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Address : |
1703, Sovereign Main Street, Hiranandani Gardens, Powai,
Mumbai-400083, Maharashtra |
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Date of Birth/Age : |
30.09.1954 |
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Date of Appointment : |
27.01.2004 |
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Date of Ceasing : |
23.07.2005 |
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Name : |
Mr. Prakash Shenoy |
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Designation : |
Additional Director |
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Address : |
306, Sai Ganesh Co-Housing Society, Dev Rathna Nagar, Swadeshi Mill
Road, Sion Chunabhatti (East), Mumbai-400022, Maharashtra |
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Date of Birth/Age : |
01.07.1973 |
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Date of Appointment : |
02.10.2006 |
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Other Directorships : |
Netizen Gujarat Limited |
KEY EXECUTIVES
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Name : |
Mr. Bhupesh Dinger |
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Designation : |
Circle Head – Andhra Pradesh |
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Date of Birth/Age : |
40 years |
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Qualification : |
B. Tech., MBA |
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Experience : |
19 years |
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Date of Appointment : |
18.06.2002 |
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Previous Employment : |
Satyam Infoways Limited (Head Sales) |
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Name : |
Mr. Kurien Pothen |
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Designation : |
Circle Head – Mumbai |
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Date of Birth/Age : |
40 years |
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Qualification : |
B.Sc., MMS |
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Experience : |
18 years |
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Date of Appointment : |
16.10.2002 |
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Previous Employment : |
Blowplast Limited (General Manager) |
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Name : |
Mr. Sunil Buch |
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Designation : |
Head – Marketing |
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Date of Birth/Age : |
40 years |
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Qualification : |
B.Sc., MMS |
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Experience : |
17 years |
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Date of Appointment : |
13.11.2002 |
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Previous Employment : |
Hope Floas (Proprietor) |
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Name : |
Mr. Sundeep Saksena |
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Designation : |
Director – Sales |
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Date of Birth/Age : |
43 years |
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Qualification : |
BE, M. Tech, MBA |
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Experience : |
18 years |
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Date of Appointment : |
16.02.2004 |
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Name : |
Mr. Suresh Shastry |
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Designation : |
Head – Customer Care |
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Date of Birth/Age : |
42 years |
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Qualification : |
B.Sc. (Physics), B.Sc.(Tech.), MMS |
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Experience : |
20 years |
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Date of Appointment : |
01.09.2004 |
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Previous Employment : |
Infotech Global Private Limited (Vice President) |
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Name : |
Mr. Srinivasan Padmabhan |
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Designation : |
Head – Operations |
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Date of Birth/Age : |
48 years |
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Qualification : |
B. Tech, MBA |
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Experience : |
25 years |
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Date of Appointment : |
28.10.2002 |
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Date of Ceasing : |
05.03.2005 |
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Previous Employment : |
S Kumar’s (Senior President) |
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Name : |
Mr. Ashish Pandit |
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Designation : |
Circle Head – Uttar Pradesh |
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Date of Birth/Age : |
38 years |
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Qualification : |
BA, MA, MBA |
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Experience : |
18 years |
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Date of Appointment : |
16.02.2004 |
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Date of Ceasing : |
21.08.2004 |
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Previous Employment : |
ACL Wirelines Limited (Head- Marketing) |
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Name : |
Mr. K R Chandrasekaran |
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Designation : |
Head – Customer Care |
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Date of Birth/Age : |
44 years |
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Qualification : |
B. Engineering, IIM |
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Experience : |
22 years |
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Date of Appointment : |
19.07.2004 |
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Date of Ceasing : |
31.08.2004 |
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Previous Employment : |
Polaris Software (Head - Marketing) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
|
Reliance Infocomm Limited |
49994 |
BUSINESS DETAILS
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Line of Business : |
Providing Service for Broadband Application. |
GENERAL
INFORMATION
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chaturvedi & Shah Chartered Accountants |
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Address : |
A-3, Laxmi Towers, 1st Floor, Bandra Kurla Complex, Bandra
(West), Mumbai-400051, Maharashtra, India |
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Holding Company : |
Reliance Infocomm Limited |
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Associates/Subsidiaries : |
Subsidiaries v Reliance Group of Companies v Netizen Rajasthan Private Limited v Paradox Studios Limited v NIS Sparta Limited Fellow
Subsidiaries v Reliance
Infoinvestments Limited v Reliance
Infocomm Solutions Limited v Reliance Gateway
Net Limited v Netizen Gujarat
Limited Associates v Reliance
Communications Infrastructure Limited v Netizen West
Bengal Private Limited v Netizen Madhya
Pradesh Private Limited v Netizen
Maharashtra Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
0.500 |
0.500 |
0.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.473 |
1.483 |
1.027 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2.973 |
1.983 |
1.127 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
1941.050 |
3075.397 |
2885.800 |
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TOTAL BORROWING |
1941.050 |
3075.397 |
2885.800 |
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DEFERRED TAX LIABILITIES |
4.839 |
0.903 |
0.702 |
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TOTAL |
1948.862 |
3078.283 |
2887.629 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2429.549 |
1772.048 |
570.686 |
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Capital work-in-progress |
390.445 |
1339.882 |
1873.462 |
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INVESTMENT |
0.197 |
0.000 |
13.001 |
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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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Inventories |
420.239
|
436.760 |
140.162 |
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Sundry Debtors |
490.010
|
1343.399 |
447.140 |
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Cash & Bank Balances |
61.111
|
33.058 |
17.162 |
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Other Current Assets |
0.003
|
0.018 |
14.107 |
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Loans & Advances |
966.685
|
432.069 |
297.645 |
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Total
Current Assets |
1938.048
|
2245.304 |
916.216 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2791.629
|
2275.120 |
482.116 |
|
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Provisions |
17.748
|
3.842 |
3.635 |
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Total
Current Liabilities |
2809.377
|
2278.962 |
485.751 |
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Net Current Assets |
(871.329)
|
(33.658) |
430.465 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.011 |
0.015 |
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TOTAL |
1948.862 |
3078.283 |
2887.629 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
5147.590 |
2677.595 |
671.990 |
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Other Income |
72.469 |
154.154 |
43.365 |
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Total Income |
5220.059 |
2831.749 |
715.355 |
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Profit/(Loss) Before Tax |
386.884 |
149.933 |
1.874 |
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Provision for Taxation |
0.000 |
0.000 |
0.847 |
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Profit/(Loss) After Tax |
386.884 |
149.933 |
1.027 |
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Imports : |
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Capital Goods |
NA |
0.334 |
52.744 |
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Others |
NA |
0.000 |
24.016 |
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Total Imports |
NA |
0.334 |
76.760 |
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Expenditures : |
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Administrative Expenses |
NA |
NA |
349.125 |
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Raw Material Consumed |
2709.275 |
1256.594 |
188.893 |
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Consumption of stores and spares parts |
334.871 |
370.743 |
NA |
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Salaries, Wages, Bonus, etc. |
140.072 |
135.089 |
123.603 |
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Payment to Auditors |
0.625 |
0.645 |
NA |
|
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Depreciation & Amortization |
NA |
NA |
13.434 |
|
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Other Expenditure |
1648.331 |
918.744 |
38.426 |
|
Total Expenditure |
4833.175 |
2681.815 |
713.481 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
7.41
|
5.29 |
0.14 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.41
|
5.29 |
0.26 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.86
|
3.73 |
0.13 |
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Return on Investment (ROI) (PBT/Networth) |
|
130.13
|
75.61 |
1.66 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1597.86
|
2700.13 |
2991.616 |
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|
Current Ratio (Current Asset/Current Liability) |
|
0.69
|
0.98 |
1.89 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
Subject was
incorporated to plan, set up, establish, develop, provide, promote, use, operate,
conduct, procure, maintain, store, exchange, information, trade, market,
distribute and to act as service provider, store keeper, consultant for all
types of digital equipments, telecommunication, software and other contents for
internet, networking, e-commerce, e-business, webstores, cybercafes, internet
call centres and kiosk’s information technology, internet, internet services,
web, networks, physical transfers, direct mailing, internet data controls,
other communication related services in India and abroad.
The company is
implementing its project to set up uniformly branded and standardized format
retail chain of stores all over India, which will offer retailing of
state-of-the-art electronics and telephony items and equipments, instant access broadband based services such as
internet, video conferencing and chat, information access, e-education and
other IT enabled services. The project
implementation is in progress and the company has incurred Rs. 128.468 millions
as on 31st March, 2002.
The company is in
initial stage of operations.
Generic Name of the
Principal Product of the company is as under :
IT enabled service
Since the company
has not commenced its revenue operations, expenses incurred during the year
under report, has been treated as project development expenditure and included
in capital work-in-progress.
The company uses the
common infrastructure of Reliance Group.
Company’s fixed
assets include Buildings, Plant and Machinery and Furniture and Fixtures.
Website Details :
Subject (formerly Reliance WebWorld) is a
world-class nationwide chain of retail outlets for products and services of the
Reliance – Anil Dhirubhai Ambani Group. It is designed to give the customer a
delightful experience of the digital world of information, communication,
entertainment and utility services.
All Subject outlets
are connected to Reliance’s countrywide optic fibre network. The Broadband
Centre at Subject leverages this broadband network to bring you innovative
digital services.
Subject is managed by Reliance Webstore Limited,
part of the Reliance – Anil Dhirubhai Ambani Group.
Franchise Partnership
An invitation to
prosper with Subject
Subject is a
world-class nationwide chain of retail outlets for products and services of the
Reliance Anil Dhirubhai Ambani Group. It is designed to give the customer a
delightful experience of the digital world of information, communication,
entertainment and utility services. Besides a wide range of phones and
associated services, customers experience a whole array of digital offerings in
the Broadband Centre at Reliance World. All Subject outlets are connected to
Reliance's countrywide optic fibre network. The Broadband Centre at Reliance
World leverages this broadband network to offer Broadband Surfing, Online
Gaming, Video Conferencing, Digital Electronic News Gathering, Digital
Services, eLearning, eTicketing, Virtual Office & many more services.
Subject already has
over 100 successful franchisees and is looking for additional franchisees in
select cities across the country to become part of this exciting new age
business proposition.
Their Franchise
partners should ideally:
v
Be between 26-35 years of age, tech-savvy and with a good educational
background
v
Have at least 5 years work experience in running a retail business, a
reputed brand franchise or as employed managers/executives in sales, marketing
or services
v
Possess an indepth knowledge of their local area and be well networked
v
Have a sound financial position and the ability to invest between Rs.
2.5-5.0 millions in this venture (depending on the size and location of the
store)
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.42.86 |
|
UK Pound |
1 |
Rs.84.40 |
|
Euro |
1 |
Rs.57.53 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
50 |
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 |
|