MIRA
INFORM REPORT
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Report Date : |
17.10.2007 |
IDENTIFICATION DETAILS
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Name : |
NAHAR RETAIL LIMITED |
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Formerly Known as : |
CREATIVE TEXTRADE PRIVATE
LIMITED |
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Registered Office : |
Premises of Nahar Industrial Enterprises Limited, Focal Point, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.11.2001 |
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Com. Reg. No.: |
024753 |
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CIN No.: [Company
Identification No.] |
U51311PB2001PLC024753 |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
To carry on as importers and exporters of all kinds of yarns and textiles,
wholesale and retail dealers, marketers, processors as principals, as agents
as licensees or as Franchise of Garments, Textile Goods, Hosiery Goods of all
kings of Cloth, Cotton Goods and Readymade Goods of every kind. |
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 264800 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Nahar Group, a well established and reputed
industrial house. Their trade
relations are fair. The company’s
financial position is satisfactory.
Payments are usually correct and as per commitments. The Company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Premises of Nahar Industrial Enterprises Limited, Focal Point, |
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Tel. No.: |
91-161-2672590-91 |
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Fax No.: |
91-161-2670596/267407 |
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E-mail : |
DIRECTOR
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Name : |
Mr. Bharat Bhushan Gupta |
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Designation : |
Director |
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Address : |
Plot No. 16, Shakti vihar, |
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Date of Birth/Age : |
27.01.1957 |
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Date of Appointment : |
16.01.2002 |
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Name : |
Mr. Hari Narain Singhal |
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Designation : |
Director |
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Address : |
HM-263, PHB Colony, Focal Point, |
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Date of Birth/Age : |
01.10.1952 |
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Date of Appointment : |
16.01.2002 |
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Name : |
Mr. Vipan Kumar Kad |
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Designation : |
Director |
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Address : |
116-F, Rishi Nagar, Opposite Income Tax colony, |
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Date of Birth/Age : |
10.01.1955 |
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Date of Appointment : |
16.01.2002 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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5000 |
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Naresh Kalia |
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5000 |
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Equity Share
Break-up |
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Percentage of
Holding |
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Bodies corporate |
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99.83 |
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Other top fifty (50) shareholders |
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0.17 |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
To carry on as importers and exporters of all kinds of yarns and
textiles, wholesale and retail dealers, marketers, processors as principals, as
agents as licensees or as Franchise of Garments, Textile Goods, Hosiery Goods
of all kings of Cloth, Cotton Goods and Readymade Goods of every kind. |
GENERAL INFORMATION
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Bankers : |
State Bank of Commercial Branch, Milerganj, |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Raj Gupta & Company Chartered Accountants |
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Address : |
Opposite Union Bank of |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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17000000 |
Equity Shares |
Rs. 10/- each |
Rs. 170.000 Millions |
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1000000 |
Preference Shares |
Rs. 10/- each |
Rs. 100.00 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6010000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.100
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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60.100 |
0.100 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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6.114 |
1.799 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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66.214 |
1.899 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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66.214 |
1.899 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.872 |
1.072 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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68.464 |
43.285 |
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Sundry Debtors |
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71.403 |
36.412 |
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Cash & Bank Balances |
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1.055 |
0.409 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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0.764 |
0.552 |
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Total
Current Assets |
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141.686 |
80.658 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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76.344 |
79.834 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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76.344 |
79.834 |
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Net Current Assets |
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65.342 |
0.824 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.003 |
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TOTAL |
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66.214 |
1.899 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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275.283 |
182.771 |
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Other Income |
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0.630 |
0.577 |
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Total Income |
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275.913 |
183.348 |
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Profit/(Loss) Before Tax |
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6.882 |
1.542 |
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Provision for Taxation |
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Profit/(Loss) After Tax |
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6.882 |
1.542 |
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Expenditures : |
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Purchases made for re-sale |
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210.586 |
141.873 |
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Consumption of stores and spares parts |
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0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
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0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
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6.135 |
5.347 |
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Managerial Remuneration |
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0.000 |
0.000 |
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Payment to Auditors |
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0.057 |
0.038 |
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Interest |
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9.341 |
11.214 |
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Insurance Expenses |
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0.136 |
0.198 |
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Power & Fuel |
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0.000 |
0.000 |
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Depreciation & Amortization |
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0.282 |
0.340 |
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Other Expenditure |
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42.494 |
22.796 |
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Total Expenditure |
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269.031 |
181.806 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.49 |
0.84 |
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Net Profit Margin (PBT/Sales) |
(%) |
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2.49 |
0.84 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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4.82 |
1.88 |
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Return on Investment (ROI) (PBT/Networth) |
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0.10 |
0.87 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.15 |
42.04 |
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Current Ratio (Current Asset/Current Liability) |
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1.85 |
1.01 |
LOCAL AGENCY FURTHER INFORMATION
FORM 8
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This Form is for |
Creation of Charge |
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Charge
identification number of the charge to be modified |
NA |
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Corporate identity
number of the company |
U51311PB2001PLC024753 |
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Name of the
company |
NAHAR RETAIL LIMITED |
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Address of the
registered office or of the principal place of business in |
Focal Point, |
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Type of charge |
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Particular of
charge holder |
State Bank of Commercial Branch, Milerganj, |
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Nature of
description of the instrument creating or modifying the charge |
Working Capital Consortium
Agreement dated 23.05.2007 and Joint Deed of Hypothecation dated 23.5.2007 |
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Date of
instrument Creating the charge |
23.05.2007 |
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Amount secured by
the charge |
740.000 |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
[a] Rate of
Interest CC/EPC/FBP/FBD - As decided by the individual banks. FLC [DA/DP] - As decided by the individual
banks. Bank
Guarantee - As decided by the
individual banks. Plus service charges
as per applicable to the said facilities from time to time. [b] Terms of
Payment The said
facilites shall be payable on demand unless otherwise agreed to by the said
banks or any one or more of them. [c] Margin The borrower
shall maintain such security margin as may be stipulated by the said
banks. The current asset cover unless
otherwise agreed to shall not be less than 1.33 times at any point of time. [d] Extent and
operation of the chage 100% |
AS PER WEBSITE DETAILS :
Subject is the subsidiary of Nahar Industrial Enterprises
Ltd (NEIL) for its men’s wear brand,
He clarified that major players in the retail apparel segment has been adopting
the strategy as it is cheaper and more effective.
The company for its brand is using this strategy to good effect, offering ‘buy two, get four free’ which means a 67 percent discount to customers and a net profit margins of 7-8 percent to the company.
Sachin Sahni commented that
The expansion plan will double its exclusive franchisee network, from 258 now to 500 and is also rolling out a women’s range of clothing, Cotton County Femme, to be followed by a kid’s range, Cotton County Tazo.
However, eventually the main aim of the company is to have a Cotton County family store, at which point they could separate into special stores and along with widening its product range, it is also tapping other price points, via the French Republic premium priced men’s wear and Cotton County Alpha, launched a fortnight ago, in the entry level price bracket.
The Cotton County Alpha range is a fixed price range, which offers shirts at Rs 299 and there are no discount schemes on it; whereas are in process to launch trousers in this category, at Rs 349 per pair, Mr Sahni said.
Nahar Industrial Enterprises Ltd (NEIL) has floated a wholly owned subsidiary, Nahar Retail for its foray into retailing.
The parent company is already involved in spinning, weaving, processing and garmenting and supplies to some of the biggest brands in the world.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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
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Indian Rupees |
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US Dollar |
1 |
Rs. 39.47 |
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1 |
Rs. 80.59 |
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Euro |
1 |
Rs. 56.18 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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54 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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