MIRA
INFORM REPORT
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Report Date : |
29.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
VISHAL RETAIL LIMITED |
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Registered Office : |
RZ / A95-A96,
Road No. 4, Gali No. 9, Mahipalpur Extension, New Delhi – 110037. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.07.2001 |
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Com. Reg. No.: |
147724 |
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CIN No.: [Company
Identification No.] |
L74999DL2001PLC147724 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALV01278E |
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Legal Form : |
Public Limited Liability Company. Company’s
Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers and
Retailers of Garments, Home Furnishing, Food mart and Household Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 5070488 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Trade relations are fair.
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 : |
RZ / A95-A96,
Road No. 4, Gali No. 9, Mahipalpur Extension, New Delhi – 110037 |
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Tel. No.: |
91-11-30622002 –
08 [8 Lines] |
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Fax No.: |
91-11-26789001/30622008 |
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E-Mail : |
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Corporate Office : |
Khasra No. 332, Near Telco Service Station, Behind Shokeen Farm Lands,
Rangpuri, New Delhi-110037 |
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Tel. No.: |
91-11-32431314-15 |
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Fax No.: |
91-11-26784281 |
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E-Mail : |
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Factory : |
Plot No. A – 244, Phase – 1, Udyog Vihar, Gurgaon, Haryana |
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Tel. No.: |
91-124-3945736 |
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Fax No.: |
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Central
Warehouse : |
A - 435/415, Road No. 4, Mahipalpur, New Delhi -110037, India |
DIRECTORS
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Name : |
Mr. Ram Chandra
Agarwal |
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Designation : |
Chairman and
Managing Director |
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Age : |
40 Years |
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Qualification : |
B.com |
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Experience : |
22 Years |
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Date of Appointment : |
23.07.2001 |
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Name : |
Mr. Surendra
Kumar Agarwal |
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Designation : |
Wholetime
Director |
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Age : |
45 Years |
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Qualification : |
B.com |
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Experience : |
15 Years |
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Date of Appointment : |
23.07.2001 |
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Name : |
Manmohan Agarwal |
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Designation : |
Director (Head – SCM) |
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Age : |
30 Years |
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Qualification : |
B.com |
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Experience : |
10 Years |
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Date of Appointment : |
01.08.2002 |
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KEY EXECUTIVES
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Name : |
Arun Gupta |
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Designation : |
Company Secretary |
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Name : |
Ritesh Rathi |
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Designation : |
Chief Operating Officer |
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Name : |
Amit Kumar Chaturvedi |
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Designation : |
Head-Finance & Accounts |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007
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Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
1437380 |
6.42 |
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Bodies Corporate |
12882620 |
57.51 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
664477 |
2.97 |
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Financial Institutions / Banks |
51747 |
0.23 |
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Foreign Institutional Investors |
1531464 |
6.84 |
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Non-institutions |
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Bodies Corporate |
3985572 |
17.79 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
1041264 |
4.65 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million |
681411 |
3.04 |
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Non Resident Indians |
25341 |
0.11 |
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Clearing member |
44609 |
0.20 |
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Trusts |
1283 |
0.01 |
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Hindu Undivided Families |
51701 |
0.23 |
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TOTAL |
22398869 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Retailers of Garments, Home Furnishing, Food mart and Household Products. |
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Products : |
v v Home Furnishing v Food Mart v Food Beverages v Sports and
Fitness v Foot Wear v Tele Mart v Communication v Mobile
Accessories v Ladies Accessories v Infants v Garments v Accessories v Winter Wear v Travel
Accessories v Household v Stationery v Party Stuff |
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PRODUCTION STATUS
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Licensed Capacity |
Not applicable |
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Installed Capacity (Own) |
1,500,000 |
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Actual Production Including through job work for the year ended 31st
March 2007 |
1,753,015 |
Notes:
(i) The Company is dealing in a large number of
products in several locations. The information required in terms of Schedule VI
of the Companies Act in respect of value of the products. Sold has been drawn
up in respect of major items, namely, apparels. Other items have been broadly
classified as FMCG and Non- Apparels (household
Goods and other accessories) and the
quantitative information’s in respect of these groups is not Practically
possible in view of numerous different units of measurement and the nature of
retailing operations of the Company.
(ii) In view of non-uniform units of
measurement of various raw materials of the company, it is not practically
possible to provide the quantitative details of raw materials consumption.
(iii) Closing Stock mentioned above doesn’t
include goods-in-transit.
GENERAL
INFORMATION
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No. of Employees : |
6801 Employees |
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Bankers : |
v State Bank of
India v HSBC Limited v Centurion Bank
of Punjab Limited v Axis Bank
Limited v ICICI Bank Limited v Address: ICICI Bank Tower,
NBC Place, Bhishma Pitamah Marg, Pragati Vihar, New Delhi – 110003, India Tel. No. :
91-11-24390000 Fax No. :
91-11-24390070 Website : http://www.icicibank.com ICICI Bank
Limited “Landmark”, Race
Course Circle, Alkapuri, Vadodara – 390007, India. ICICI Bank
Limited ICICI Bank
Towers, Bandra – Kurla Complex, Mumbai – 400051, Maharashtra, India Tel. No. :
91-22-26531414 Fax No. :
91-22-26531122 Kotak Mahindra
Bank Limited 36-38A, Nariman
Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India State Bank of
India A – 5, South
Extension Part – 1, New Delhi – 110049, India YES Bank Limited 9th
Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai
– 400018, Maharashtra, India E-mail : nikhil.sahni@yesbank.in CIN : U65190MH2003PTC143249 |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Haribhakti and Company, Chartered Accountant |
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Address : |
42-43, Press Free House, 215, Nariman Point, Mumbai – 400021. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25,000,000 |
Equity Shares |
Rs.10/- Each |
Rs. 250.000 millions |
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4,00,000 |
Preference Shares |
Rs. 146/- Each |
Rs. 58.400 millions |
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Total |
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Rs. 308.400
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,83,24,795 |
Equity Shares |
Rs. 10/-
Each |
Rs. 183.247
millions |
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Total |
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Rs. 183.247 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
183.248 |
220.998 |
148.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1084.374 |
506.008 |
154.934 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1267.622 |
727.006 |
303.134 |
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LOAN FUNDS |
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1] Secured Loans |
2162.954 |
476.106 |
191.490 |
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2] Unsecured Loans |
269.119 |
74.375 |
31.025 |
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TOTAL BORROWING |
2432.073 |
550.481 |
222.515 |
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DEFERRED TAX LIABILITIES |
18.024 |
12.662 |
11.215 |
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TOTAL |
3717.719 |
1290.149 |
536.864 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1071.600 |
353.982 |
185.845 |
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Capital work-in-progress |
10.878 |
46.404 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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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Inventories |
2491.476 |
781.985 |
374.037 |
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Sundry Debtors |
1.198 |
0.927 |
0.379 |
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Cash & Bank Balances |
151.513 |
82.663 |
22.017 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
662.839 |
325.935 |
60.784 |
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Total
Current Assets |
3307.026
|
1191.510 |
457.217 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
467.060 |
224.352 |
90.931 |
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Provisions |
204.725 |
77.416 |
15.718 |
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Total
Current Liabilities |
671.785
|
301.768 |
106.649 |
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Net Current Assets |
2635.241
|
889.741 |
350.568 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.020 |
0.451 |
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TOTAL |
3717.719 |
1290.148 |
536.864 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
6026.525 |
2884.427 |
1464.545 |
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Other Income |
23.897 |
6.455 |
-- |
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Total Income |
6050.422 |
2890.881 |
1464.545 |
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Profit/(Loss) Before Tax |
393.814 |
186.174 |
49.713 |
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Provision for Taxation |
143.148 |
62.304 |
0.000 |
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Profit/(Loss) After Tax |
250.666 |
123.870 |
49.713 |
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Imports : |
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Fixed Assets |
127.214 |
28.010 |
N.A |
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Purchase of Merchandise |
246.031 |
61.309 |
N.A |
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Total Imports |
373.245 |
89.319 |
NA |
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Expenditures : |
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Cost of Goods Sold |
3462.811 |
1736.918 |
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Manufacturing Expenses |
1603.383 |
743.584 |
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Personal Expenses |
289.949 |
141.477 |
1414.832 |
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Finance Cost |
147.536 |
29.115 |
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Depreciation & Amortization |
152.929 |
53.613 |
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Total Expenditure |
5656.608 |
2704.707 |
1414.832 |
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KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
1.50 |
0.75 |
0.71 |
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Long Term Debt
Equity Ratio |
0.54 |
0.30 |
0.71 |
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Current Ratio |
1.54 |
1.84 |
2.70 |
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TURNOVER RATIOS |
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Fixed Assets |
6.74 |
8.24 |
8.06 |
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Inventory |
3.68 |
4.99 |
5.07 |
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Debtors |
5739.52 |
6409.78 |
0.00 |
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Interest Cover
Ratio |
3.50 |
7.05 |
6.10 |
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Operating Profit
Margin (%) |
11.68 |
9.38 |
6.08 |
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Profit Before
Interest and Tax Margin (%) |
9.14 |
7.52 |
4.09 |
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Cash Profit
Margin (%) |
6.70 |
6.15 |
4.06 |
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Adjusted Net
Profit Margin (%) |
4.16 |
4.30 |
2.06 |
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Return on Capital
Employed (%) |
22.13 |
24.02 |
16.11 |
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Return on Net Worth (%) |
25.86 |
25.44 |
13.89 |
LOCAL AGENCY
FURTHER INFORMATION
REVIEW
OF FINANCIAL PERFORMANCE:
The company has continued its march with another strong year of
continued growth. The Company achieved new scales of height this year.
Following are the few benchmarks:
INCOME:
Continuing the positive trend, the company has further improved its
performance during the year; the turnover including other income was Rs.6050.42
millions compared to Rs.2890.88 millions in the previous period of 12 months,
recording a whopping 109 increase on annualized basis.
EBIDT:
At the end of financial year, EBIDT stood at Rs. 694.28 Million as
compared to Rs. 268.89 Million in the previous year, recording a 152.80/o
increase on annualized basis.
PAT:
At the end of financial year, the profit after tax has risen from
Rs.123.87 millions to Rs.250.67 millions this year, recording a 102.36%
increase on annualized basis.
2006-2007: A GLIMPSE
Launch of New Stores:
Since
the set up of Vishal Mega Mart, the focus of the company has been on setting up
stores in the Tier II and Tier III Cities & catering the needs of Medium
and Upper Medium Segment of the Society, where the future of Retail Industry
rests. To tap the opportunities in Organised Retail, the Company opened up 26
Stores in the Tier II and Tier III Cities. & 1 Store in Tier I city. These
new Stores contributed significantly to the revenues of the Company and
providing the Company a PAN India presence.
Private
Labels:
Retail
Industry is cost competitive Industry, the margins are low. These margins are
further reduced, it the Retailers are engaged only in the distribution of high
cost branded products. Therefore, in an effort to jack up gross margins, they
have evolved the concept of Private Labels. Private Labels carries the brand
name of the Company itself, but manufacturing of the same is outsourced to
Local Manufacturers.
Subject
has a number of in house brands (these are called private labels) such as
Zepplin, Paranoia, Chlorine, Kittan Studio, Famenne, Fleurier Women and Roseau
etc. In fiscal 2007, the income from the private labels was Rs.583.60 million
compared to Rs. 483.50 Million in the fiscal 2006, which accounted for 9.68% of
the total sales for fiscal 2007. They believe that the focus on the private
labels and their recognition in the customer segment enables us to
differentiate ourselves from the competitors as they’ll as to improve the
margins.
Human Resource:
Retail
Industry in India is still in the nascent stage. People are not much aware
about growth in the Retail Industry. The importance of stable, talented and
efficient workforce is further enhanced by these factors. To overcome these
work factors, they have created a favourable work environment that encourages
innovation and meritocracy. They are in the process of putting up a scalable
recruitment and human resource management process, which will enable us to
attract and retain high caliber employees & meet the challenges of the
Retail Industry.
The
Key focus has been to change the mindset from 'human resource utilization' to
'nurturing and leveraging talent'. They believe in investing in people
competencies for the business requirements of tomorrow. With a view to creating
a strong management base, the company has tied up with various Management
Institutions viz., Asia Pacific Institute of Management, Amity International
School of Business, JIMS, and IILM etc.
The
Board of Directors wishes to place on record their appreciation to all the
employees of the Company for their sustained efforts, dedication and hard work
during the year.
FUNDS RAISED
Issue of Preferential Equity to
49 Investors:
The
Company has made a preferential Allotment of 12,50,000 Equity Shares of nominal
value of Rs. 10/each at a premium of Rs. 190/- each to 49 Investors on June 05,
2006, for which the approval was taken at the Extra Ordinary General Meeting of
the Company held on June 02, 2006.
Issue of Preferential Equity to
HDFC Ltd.:
The
Company has made a preferential Allotment of 2,00,000 Equity Shares of nominal
value of Rs.10/- each at a premium of Rs.190/- each to HDFC Ltd. on July 21,
2006, for which the approval was taken at the Extra Ordinary General Meeting of
the Company held on July 03, 2006.
Issue of Preferential Equity
through IPO:
The
Company has come out with an Initial Public Offering of its shares. An amount
of Rs. 1100 Million was raised through IPO and based upon the bids received for
the IPO, 4,074,074 shares of nominal value of Rs. 10 each were allotted at a
premium of Rs. 260/- per share on June 26, 2007.
Issue of Debentures to LIC Mutual
Fund:
The Company has privately placed 600 secured Redeemable Non Convertible Debentures of Rs.1.000 millions each amounting to Rs. 600.000 millions with LIC Mutual Fund on November 14, 2006. The said debentures are due for redemption on November 13, 2007.
FUTURE PLANS:
The Company has drawn up an aggressive expansion plan for the
Fiscal years 2008 & 2009. The Company is planning to add another 30 stores
by March 31, 2009. The total retail space stood at 12,82,000 (Approx.) on May
21, 2007. They have already identified locations for few of the forthcoming
stores and are in the process of entering into Memorandum of Understanding with
respective Landlords' for the same. The company will be adding more Private
Labels in its portfolio to enhance the growth margins.
The Company has opened up three new stores during this financial year at
Patna (Bihar), Karnal (Haryana) & Dahisar (Mumbai). Few more stores are in
the pipeline and they will be launching them in the near future.
INDUSTRY
EVALUATION:
Indian Retail Industry is ranked among the ten largest retail
markets in the world. The attitudinal shift of the Indian consumer in terms of
'Choice Preference', 'Value for Money' and the emergence of organised retail
formats have transformed the face of Retailing in India. As per CRIS INFAC
Report,2005, the Indian retail industry is currently estimated to be a US$200
billion industry and organised Retailing comprises of 3 per cent (or) US$6.4
Billion of the retail industry. With a growth over 20 percent per annum over
the last 5 years; organised retailing is projected to reach US$ 30 Billion by
2010.
Retailing in India is gradually inching its way to becoming the next boom
industry. The whole concept of shopping has altered in terms of format and
consumer buying behavior, ushering in a revolution in shopping. Modern retail
has entered India as seen in sprawling shopping centres, multi-storeyed malls
and huge complexes offer shopping, entertainment and food all under one
roof.
Retail is India's largest industry, accounting for over 10 percent of the
country's GDP and around 8 percent of employment. Retail in India is at the
crossroads. It has emerged as one of the most dynamic and fast paced industries
with several players entering the market.
The Indian retailing sector is at an inflexion point where the growth of
organised retail and growth in. the consumption by Indians is going to adopt a
higher growth trajectory. The Indian population is witnessing a significant
change in its demographics. A large young working population with median age of
24 years, nuclear families in urban areas, along with increasing working-women
population and emerging opportunities in the services sector are going to be
the key growth drivers of the organised retail sector.
Organised retail in India is on a high growth trajectory and is growing
at the rate of 24-26% annually. The size of the total retail industry market is
estimated to be around Rs. 9,990 billion in 2004-05, with organised retailing
accounting for a mere 3.50/0 of the India's total retail market.
In its Annual Review, CRIS INFAC,2005 estimated the organised retail penetration to increase to 8% by 2010 at a CAGR of 26%. The organised retail penetration is projected to increase to 5.8% by 2007-08.
DRIVERS FOR GROWTH IN
RETAILING:
Higher Disposable
Income:
The disposable income of Indian consumers has increased steadily:
The proportion of the major consuming class (population that has an annual
income that is higher than Rs. 90,000) is expected to grow at a CAGR of 9.3 per
cent (2002-2010) over the next 8 years and will result in higher spending
capacity and eventually into greater consumption.
Higher level of working
women:
According to the 2001 census report, the population of working women
has increased from 22 per cent in 1991 to 26 per cent in 2001. The purchasing
habit of a working woman is different from that of a housewife, since the
former has lesser time to devote to the task. Working women would prefer a
one-stop shop for purchasing their regular products. Also, a working woman's
propensity for spending is higher than that of a housewife.
Baby boomer effect:
There has been a strong demographic shift in India's population
distribution. The percentage of the earning population (15 to 60 yrs) in the
total population is rising. This will increase the overall purchasing capacity
in the country, propelling growth in the retail segment.
The proportion in total population of the segment with an annual income higher than Rs 90,000 (that is, the major consuming class) has increased from 20.4 per cent in 1995-96 to 28.1 per cent in 2001-02. However, the share of the major consuming class in the urban region has increased at a higher rate, from 45 per cent in 1998-99 to 51 per cent in 2001-02, and it is expected to touch 63 per cent by 2009-10. Further, the income levels of the urban middle class are also expected to register a strong growth in the medium term.
Change in outlook on branded
products and Growth in the number of retail malls:
In the last 4-5 years, Indian markets have witnessed a strong
shift towards branded products as Indian consumers have started feeling that
branded goods offer better quality and greater value for money. This increase
in the awareness of branded goods has been the highest in the case of apparel.
Increased exposure to international consumerism trends and fast changing
lifestyles can result in a 10-15 per cent growth in branded goods, which will,
in turn, provide a platform for the growth of organised retail.
The last 2-3 years have also witnessed a proliferation in malls in India,
particularly in the metros and mini metros. The growth in retail malls provides
more options for retailers, as it reduces the time required to set up a retail
outlet. It also provides retail space, which can be leased by retailers instead
of investing in building up their own store. This significantly reduces the
capital intensity of the retail industry. Typically, a retail chain would
prefer to lease store space in a mall instead of setting up a standalone store,
since this reduces capital investment, which can be employed in their core
business of retailing.
Increased use of credit cards and
availability of cheap finance:
The use of plastic money (credit and debit cards) has increased
significantly in the last 4-5 years. In fact the ease of payments (ability to
spend without cash) due to the use of credit and debit cards, has also led to
an increase in total spending on shopping and eating out.
With the acceptance of and the increase in the number of electronic data
converter machines installed in retailing outlets, they believe credit and
debit cards will provide further, fillip to organised retail.
Segments in Retail:
Retail as a whole can be broken into various categories, depending on the
types of products serviced. Food and groceries has the biggest share in the
retail pie, accounting for the around 76%. However, it has the lowest organised
retail penetration. This is indicative of the opportunity for organised retail
growth in this segment. The footwear and clothing segments have the highest
penetration of organised retail.
|
Category |
Total Retail |
Organised Retail |
|||
|
Market Size (Rs. billion) |
Market Share (per cent) |
Market Size (Rs. billion) |
Market Share (per cent) |
Penetration (per cent) |
|
|
Food Beverage and
tobacco |
7.738 |
75.8 |
65 |
19 |
1 |
|
Clothing and
textile |
716 |
7 |
141 |
40 |
20 |
|
Consumer Durables |
416 |
4.1 |
43 |
13 |
10 |
|
Jewelleries |
416 |
4.1 |
25 |
7 |
6 |
|
Home décor and
furnishing |
300 |
2.9 |
25 |
7 |
8 |
|
Beauty care
products |
214 |
2.1 |
7 |
2 |
3 |
|
Foot wear |
104 |
1 |
32 |
9 |
31 |
|
Books, Music and
gifts |
87 |
0.8 |
11 |
3 |
13 |
|
Total |
9990 |
100 |
349 |
-- |
-- |
Home decor and food
and grocery are emerging as the fastest-growing segments. The proliferation of
hypermarkets and supermarkets has led to a growth in food and grocery retail;
thus, value retailing is seen to be gaining ground in India. The other high
growth verticals are apparel and durables. Impulse goods like books and music
are also gaining a larger share in the organised retail market, with players
making stores more accessible to consumers
|
(Rs.
in billion) |
2005 |
2002 |
CAGR
(per cent) |
|
Clothing, textile
and fashion accessories |
141 |
50 |
41.3 |
|
Footwear |
32 |
20 |
17.0 |
|
Jewelleries and
Watches |
25 |
25 |
0.0 |
|
Food and Grocery |
65 |
20 |
48.1 |
|
Durables |
43 |
15 |
42.1 |
|
Books, Music and
gifts |
11 |
5 |
30.1 |
|
Home decor |
25 |
5 |
30.1 |
|
Beauty Care
Products |
7 |
N.A. |
-- |
BUSINESS EVALUATION:
They are a leading player in the Indian Retail Industry focused on
value retailing in Tier II and Tier III cities of the country. The business is
modeled on the on the concept of 'value for money' retailing and has
established a strong customer connect with the middle and lower middle income
consumer groups. The Key strategy is to offer quality products, at the minimum
possible cost, with a focus on private label and quassi private label products
an fashion at affordable price.
They started as a retailer of ready-made apparels in Kolkata in 2001. In
2003, they acquired the manufacturing facilities from Vishal Fashions Private
Limited and M/s Vishal Apparels. Subsequently, with evolution of retail
industry in India and change in consumer aspirations, they diversified the
portfolio of offerings to include other retail goods. Currently, they sell
ready-made apparels and a wide range of household merchandise and other
consumer goods such as footwear, toys, watches, toiletries, grocery items, sports
items, crockery, gift and novelties.
In order to reduce costs and take advantage of economies of scale they
have embarked on backward integration of the products. The apparel
manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in
supply chain, they have set up seven regional distribution centres located
around Kolkata (West Bengal), Thane (Maharashtra), Jaipur (Rajasthan),
Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi.
Further, they have focused on developing a cost and time efficient distribution
and logistics network, which currently comprises seven distribution centers and
a fleet of trucks for transportation.
They achieved total sales of Rs. 6,026.53 million for fiscal 2007, as
opposed to a turnover of Rs. 2,884.43 million for fiscal 2006 and Rs. 1,463.12
million for fiscal 2005. During the same period the profit after tax was Rs.
249.83
million, Rs. 124.74 million and Rs. 30.20 million, respectively.
As a result, the sales increased between fiscal 2004 and fiscal 2007 at a CAGR of 89.83% and the profit after tax increased between fiscal 2004 and fiscal 2007 at a CAGR of 302.89%.
Segment Wise Performance:
|
Category |
Fiscal 2007 |
Fiscal 2006 |
% Growth |
|
Apparel |
3800968337 |
2043676792 |
85.98% |
|
FMCG |
905884507 |
257489344 |
251.32% |
|
Non Apparel |
1314429767 |
580538128 |
124.41% |
|
Total |
6021282611 |
2882064264 |
108.92% |
COMPETITIVE
STRENGTHS:
They believe that the following are the principal competitive strengths
which have contributed to the current position in the retail sector in
India:
Understanding
of the 'value retail' segment:
The business plan involves implementation of the concept of the
'value retailing', targeting the middle and lower middle income groups, which
constitute majority of the population in India. They intend to provide quality
products at competitive prices. The emphasis has been to maximise the value
that the customers derive in spending on goods bought in the stores. They
endeavour to continuously reduce the costs through a variety of measures, such
as, in-house production of apparels, procurement of goods directly from the
small and medium size vendors and manufacturers, efficient logistics and
systems along with customized product mix at the stores depending on the
regional customer behaviour and preferences.
Central to the value retail strategy is to pass on the
benefits of cost reduction measures to the customers.
Supply chain management:
The supply chain management involves planning, merchandizing sourcing,
standardization, vendor management, production, logistics, quality control,
'pilferage' control replacement and replenishment. The supply chain management
provides us flexibility to adapt to changing patterns in consumer behaviour and
the ability to add value at various steps/levels. In particular, the supply
chain management gains strength from the ability to undertake in-house
manufacture, design and development of apparels.
Logistics and distribution
network:
The distribution and logistics network comprises seven distribution
centres. Besides, we have the own fleet of 41 trucks, which helps us to
transport and deliver the products in a cost and time efficient manner. They
believe that the distribution and logistics set up is well networked and allows
us to fulfil the store requisition within short time period of generation and
receipt of order, which has helped us to optimize in-store availability of
merchandise and minimize transportation costs. The strong distribution and
logistics network has enabled us to dispense with the requirement of a
dedicated storage space at every store, which is an industry practice, and
instead undertake periodical replenishment of depleted stock. Due to adoption
of an efficient racking system, they are able to benefit from optimum utilization
of the space allocated for display in the stores. This provides us assistance
in maintaining a low working capital requirement and less carrying cost.
Geographical spread:
The stores and distribution centers are spread in various parts and
regions of the country. This has not only enabled us to build the brand value
but also facilitated us to explore cost-effective sourcing from different
locations, identify potential markets and efficiently establish new stores in
different locations. An aggregate of 45 of 53 of the existing stores are
located in Tier II and Tier 111 cities, which, they believe, enables us to
capture market share in locations where a majority of the target customers are
located.
Identifying new locations:
They believe that they possess the ability to identify locations with
potential for growth, in particular in Tier II and Tier III cities. They have
an exclusive site identification and assessment team, which undertakes
systematic analysis of the business prospects, taking into account factors such
as population, literacy levels, nature of occupation,
income levels, accessibility, basic infrastructure and
establishment and running costs. Further, they have a dedicated warehouse for
the purposes of storing the materials essential for setting up of new
stores.
Concentrated
Geographical Presence:
Currently, they are having strong presence in central and northern
India, wherein they derive 61.93% of the revenues. Further all the
manufacturing and warehousing facilities are located in this region. The
Aggressive plans for the next two years in other regions of the country may
pose a concern in terms of the company's execution skills and logistic set
up.
Increase in competition to impact Margins:
Considering the industry's huge growth potential, new players, both
domestic and international, are likely to enter the market. Groups such as
Reliance Industries, Bharti etc., and foreign players like Wal Mart, Tesco,
Carrey the and Metro have already expressed their keenness to operate in India.
Increased Competitive pressure is likely to alter the dynamics of business
quite dramatically, further staining land and manpotheyr resources.
Further, the advent of competition may also dent the high
level of profitability enjoyed by us.
Retail Landscape:
According to Images 2006, organised retail is set to grow at a 35% CAGR
over the next few years and will reach US 30bn by 2010. However, in order to
reach this target, several initiatives and huge investments would be required
on the part of retailers. They estimate that Retail Industry would be requiring
145-060 mn sq. ft. of space to reach this target. Further, in view of large
expansion plans of Pantaloon, Reliance and Wal Mart making a foray into Indian
Retail Industry with Bharti, prominent land space would be a big threat to the
industry.
FUTURE OUTLOOK:
Today, the country is in grip of retail revolution with big
retailers like Wal-Mart eager to take over Indian markets. Even within the
country, big business houses like TATA, Reliance, Bharti have already made
there foray into the retail market, At this time of bloodthirsty competition
they aspire to distinguish the selves in the retail industry by the competitive
strengths they offer. The concept of 'value retailing' i.e. targeting on the
needs of the middle and lower income group has been the foremost strength which
has enabled us cling the focus of the market. The prime concern has been to
establish the base structure in Tier II and Tier III cities and to serve to
their needs at the best. The continuous aim is to evolve ourselves to meet the
demands of the highly dynamic society. To accomplish this goal they have been
introducing private labels, identifying new and globally distributed locations
to set up new show rooms and hire experienced and skilled management
team.
They have aggressive Roll out plans for the future. They would be opening
stores under the new Retail Formats such as Convenient Stores, Specialty Stores
to cater to the demand of existing and forthcoming stores, which will
contribute significantly to the revenues and the customer base.
We are targeting to achieve a turnover of Rs. 5,000/- (Rupees five
thousand only) Crores by the financial year ending March 2010 and become the
leading Retailers in India. For this, they are planning to enter into tie ups
with branded manufacturers, suppliers, service providers for diversifying the
operations and unleashing more opportunities for the growth of the business and
providing the stakeholders, the value for their money.
OPPORTUNITIES:
Presence in Tier II and Tier III
cities:
They are operating 45 Stores out of 53 Stores in India in the Tier II and
Tier III cities. They are having strong presence in these cities. Big players
have not ventured into these cities. In Future, they would be operating more
stores in such cities and aid in the development of the organised Retail
Industry in such cities
New Retail Format:
They are in the process of launching Convenient Stores and Specialty
stores all over India, by which they would be able to reach every consumer and
also gain a wide spread geographical presence all over the India. These stores
would be spread in the area of approximate 5,000-10,000 Sq. Ft. They have
already identified some of the suitable locations for the same and have entered
into Memorandum of Understanding with some of the owners for running these
stores from their premises.
Booming Industry Scenario:
The Retail Industry, which was a few time back at the nascent stage, is
progressively moving forward to become the biggest industry contributing a
large chunk of resources in the development of economy. The Industry is having
a CAGR of 25%, which is supposed to increase further. They, being one of the
major Retailers in the Industry, will be garnering a strong share in the Retail
Industry growth and providing value for money to the stakeholders.
Private Labels:
The objective has always been to offer quality products at the minimum possible costs. Thus, they strives to offer differentiated products that are not available elsewhere at very competitive prices, by either manufacturing them in house or directly sourcing them from manufacturers. They have a number of in house brands which are contributing significantly to the total revenues.
They would be launching more products under the private labels, which
will pave the way for the margins and create a strong value for the
stakeholders.
De risking the Business Model:
They are working on de-risking the business model. While keeping the
products range wide, they have ensured a balanced mix of in house manufactured
products (private labels) and products sourced from manufacturers (quasi
private labels) to optimize margins and minimize risks.
Currently, apparels contribute a significant portion to the revenues. In
order to reduce the dependence on the apparels business and de-risk the
business from the seasonality of apparel retailing, they are focusing more on
non-apparels and FMCG retailing. This segment would be contributing
significantly to the revenues in future, thereby minimizing the risk.
Comparison
of Fiscal year 2007 and Fiscal year 2006:
Some of the significant events that took place during the Fiscal
year 2007 were as follows:
1. 27 new stores were opened,
aggregating to an area of 770,890 square feet. The store at Hyderabad has been
shifted to another location at the same place with a higher area and also they
have closed the operations at Siliguri First store and have opened another
store 'Siliguri Second' with a higher area. The stores located at Meerut, Agra
were closed due to fire in such store.
2.
They have made preferential allotment of 1,450,000 Equity Shares in month of
June and July 2006 at an issue price of Rs. 200 per Equity Share.
3. During
Fiscal year 2007 they have tested and partly implemented SAP ERP package for
management information system. During the transition face from old information
package to new ERP system, they faced operational difficulties in terms of
delayed and improper receipt of operational data particularly of sales. This
has even led to over stocking of the materials to overcome the replenishment
requirements of the company.
Profit after Tax:
Net
profit increased by 102.36% to Rs. 250.67 mn in Fiscal year 2007 from Rs.
123.87 mn in Fiscal year 2006-07. The increase was mainly on account of
increase in sales due to opening of new stores, change in sales mix with an
increase sales mix of non apparel goods with better net margins and FMCG
products
Other Income:
Other
income earned in Fiscal year 2007 was Rs. 23.90 million in comparison to Rs.
6.46 million in Fiscal year 2006, an increase of 254.80%. This increase was
mainly on account of increase in display charges on account of FMCG goods,
receipt of commission on account of issuance of credit card under the
co-branded card agreement with SBI Cards & Payment Services Private Limited
Capital Employed:
The total
capital employed in the business increased by Rs. 242,208,720/- in 2006-07.
This is reflected in the liabilities side of the balance sheet of the company
through an increase in borrowing by Rs. 1,881,592,013/- and an increase in
share capital by Rs. 540,616,707/-.
Capital Structure:
* The
Company has authorised equity share capital of Rs. 250.000 millions comprising
25.000 millions equity shares of Rs. 10/- each and authorised preference share
capital of Rs. 58.400 millions divided into 0.400 millions preference shares of
Rs.146/- each.
* The
paid up equity share capital of the Company increased from Rs.164.906 millions
in financial year 2005-06 to 183.247 millions in 2006-07.
Further
3,84,190 Preference Shares of Rs.146/- were converted in to equity shares at a
price of Rs. 146/- each during the year under review. The company has issued
and allotted 12,50,000 equity shares of Rs. 10/- each at a premium of Rs. 190/-
each to 49 investors on July 02, 2006 and further 2,00,000 equity shares of
Rs.10/- each were allotted to HDFC Ltd. at a premium of 190/-each.
Loan Profile:
* Loans increased from Rs. 550.480
millions to Rs. 2432.072 millions during the financial year 2006-07. The
secured loans increased from Rs. 476.105 millions in 2005-06 to Rs. 2162.954
millions in the financial year 2006-07. The unsecured loans increased from Rs.
74.375 millions in 2005-06 to Rs.269.118 millions in 2006-07.the secured loan
is primarily on account of working capital facility and cash credit limit to
finance the operations and to maintain the liquidity of the company.
* The
total Debt equity ratio stood at 1.71:1 in 2006-07 as compared to 0.76:1 in
2005-06. The debt is primarily consists of working capital facility and cash
credit limit
Capital Expenditure:
During
2006-07, the Company incurred Capital expenditure of Rs.885.786 millions
(inclusive of addition to WIP). The capital expenditure incurred during the
year is primarily on account of adding up new stores to the Company's Portfolio
of Stores and renovating existing stores. Intra Group Transaction:
There were no Intra group transactions
during the financial year 2006-07.
Gross Block Size and Nature of
Assets:
* The Company's
gross block of assets increased from Rs. 459.934 millions in the financial year
2005-06 to Rs. 1329.272 millions exclusive of Capital work in progress.
Fixed Assets:
v
Land
v
Plant and Machinery
v
Lift
v
Generator Set
v
Furniture and
Fixture
v
Electrical
Equipments and Fittings
v
Office
Equipments
v
Air Conditioner
v
Computer and
Computer Software
v
Video
Conference Systems
v
Motor Vehicles
Contingent Liabilities not
provided for:
(a) Outstanding Bank Guarantee Rs. 3.435 millions (Rs. 1.475 millions)
(b) Disputed Sales tax demands Rs. 12.668 millions (Rs. 20.591
millions) against which the company has filled appeal with the relevant
authorities.
(c) Disputed Entry Tax Demands Rs. 3.318 millions (Rs. 2.030 millions)
against which the company has filled appeal with the relevant authorities.
(d) Claims against the company not acknowledged as debts Rs. 3.010
millions (Rs. 3.425 millions).
(e) Guarantees given by the Company for the loan taken by the directors
amounting to Rs. 21.000 millions.
Securities against Loans:
(a) Cash Credit Limit
The Cash Credit limit from State Bank of India is secured by:
(i) Hypothecation of stock of raw materials, work in progress, finished
goods (present and future) and all other current assets of the company, except
the stock lying with the franchisee.
(ii) First charge and equitable mortgage of property in the name of
Vishal Water World Private Limited., Situated at Kouchpukar, P.O. Hatgachia,
Dist, 24 Parganas (West Bengal)
(iii) Extension of charge on the Fixed Assts of the Company.
(iv) Personal Guarantee of Ram Chandra Agarwal, Uma Agarwal and
Surendra Kumar Agarwal, Directors of the Company.
(v) Corporate Guarantee of Vishal Water World Private Limited.
The Cash Credit limit from HSBC is secured by:
(i) Hypothecation of Fixed Assets and entire current assets.
(b) Corporate Loan:
(i) The Corporate Loan from
State Bank of India is secured by first charge on the Fixed Assets of the
Company.
(ii) The Term Loan from
Centurion BOP is secured by first charge on fixed assts acquired out of term
loan.
(iii) The Corporate Loan from HSBC is secured by entire Plant and
Machinery (fixed and Movable).
(iv) The Corporate Loan from Yes Bank is secured by hypothecation of
current assets.
(v) The Corporate Loan from LIC India is secured by mortgage of
office/land.*
* The Company is in the process of filling form for the registration of
charge for such securities.
(c) Vehicle Loan:
Secured by hypothecation of specific assts.
Vishal is one of fastest growing retailing groups in India. Its outlets
cater to almost all price ranges. The showrooms have over 70000 products range
which fulfills all the household needs, and can be catered to under one roof.
It is covering about 2059292 lac sq. ft.
in 18 state across India. Each store gives you international quality goods
and prices hard to match. The cost benefits that is derived from the large
central purchase of goods and services is passed on to the consumer.
Form 8 Particular for creation or modification of charges
|
Corporation identity number or foreign
company registrations number of the company
|
U74999DL2001PLC147724 |
|
Name of the company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi – 110037, India |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
Kotak Mahindra Bank Limited 36-38A, Nariman
Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India E-mail : rakesh.jindal@kotak.com CIN : L99999MH1985PLC038137 |
|
Nature or description of the instrument
creating charge |
Deed of Hypothecation |
|
Date of the instrument creating charge |
24.06.2006 |
|
Amount Secure by the charge |
Rs. 1.512 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
Loan Amounting to Rs. 1.512 millions to be
repaid in 36 instalments of Rs. 0.048 million calculated @ 5.07% p.a. |
|
Description of the property charge whether
it is a charge on |
Plant and machinery |
|
Particulars of the Property charged |
First and exclusive charge of “Kotak
Mahindra Bank Limited” on 2 No’s of Eicher 10.75 |
|
Corporation identity number or foreign
company registrations number of the company
|
U74999DL2001PLC147724 |
|
Name of the company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi – 110037, India |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
Kotak Mahindra Bank Limited 36-38A, Nariman
Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India E-mail : rakesh.jindal@kotak.com CIN : L99999MH1985PLC038137 |
|
Nature or description of the instrument
creating charge |
Deed of Hypothecation |
|
Date of the instrument creating charge |
31.03.2006 |
|
Amount Secure by the charge |
Rs. 6.028 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
Loan Amounting to Rs. 6.028 millions to be
repaid in 36 instalments of Rs. 0.189 million calculated @ 4.65% p.a. |
|
Description of the property charge whether
it is a charge on |
Vehicles |
|
Particulars of the Property charged |
ENGINE NUMBERS :- E483CD6C139280, E483CD6C138895, E483CD5MC132989, E483CD5M133395, E483CD6C139470, E483CD6B137709 CHASIS NUMBERS :- 19FC6C135004, 19FC6C135005, 19FC5M130381,
19FC5M130634, 19FC6C135134, 19FC6B133943 |
|
Corporation identity number or foreign
company registrations number of the company
|
U74999DL2001PLC147724 |
|
Name of the company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi – 110037, India |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
YES Bank Limited 9th
Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai
– 400018, Maharashtra, India E-mail : nikhil.sahni@yesbank.in CIN : U65190MH2003PTC143249 |
|
Nature or description of the instrument
creating charge |
Deed of Hypothecation |
|
Date of the instrument creating charge |
12.06.2006 |
|
Amount Secure by the charge |
Rs. 150.000 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
The effective rate of Interest is 9.5% p.a.
0.5% of the facility amount payable upfront on acceptance of the facility
letter excess Interest, Overdue Interest & Default Interest @2% as
applicable will be levied |
|
Description of the property charge whether
it is a charge on |
Stock in trade and book debts |
|
Particulars of the Property charged |
Stock of raw material, semi finished &
finished goods, stores & spares, bills receivables, book debts and all
other receivables & movables both present and future sotred or be in or
about of the borrowers factories, premises & godowns situated anywhere |
|
Corporation identity number or foreign
company registrations number of the company
|
U74999DL2001PLC147724 |
|
Name of the company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi – 110037, India |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
State Bank of India [Consortium] A – 5, South Extension Part – 1, New Delhi –
110049, India E-mail : sanju_professional@yahoo.co.in |
|
Nature or description of the instrument
creating charge |
Working Capital Consortium (CF – 1), Joint
Deed of Hypothecation (CF – 2) & Interse Agreement (CF – 3) |
|
Date of the instrument creating charge |
19.07.2006 |
|
Amount Secure by the charge |
Rs. 1095.000 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
Whole of the current assets, movable assets
& other current assets of the company both present & future. The above is secured by way of first
charge & IInd charge on fixed assets on pari-passu basis alongwith HSBC
Limited, SBI is acting as a lead bank of consortium. ROI SBI 1% below the
SBAR & on SLC 1% above SBAR & ROI of HSBC Limied @ 9.25% p.a. on
daily balance payable on monthly basis or such other rates (S) specified by
the bank from time to time margin on stocks @ 25% |
|
Description of the property charge whether
it is a charge on |
Plant and machinery, furniture and fixtures,
Stock in trade and book debts |
|
Particulars of the Property charged |
Whole of the current assets, movable assets
& other current assets of the company both present & future lying
anywhere including goods in transit |
|
Corporation identity number or foreign company
registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi – 110037, India |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
YES Bank Limited 9th
Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai
– 400018, Maharashtra, India E-mail : nikhil.sahni@yesbank.in CIN : U65190MH2003PTC143249 |
|
Nature or description of the instrument
creating charge |
Deed of Hypothecation |
|
Date of the instrument creating charge |
12.06.2006 |
|
Amount Secure by the charge |
Rs. 150.000 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
The effective rate of Interest is 9.5% p.a.
0.5% of the facility amount payable upfront on acceptance of the facility
letter excess Interest, Overdue Interest & Default Interest @2% as
applicable will be levied |
|
Description of the property charge whether
it is a charge on |
Stock in trade |
|
Particulars of the Property charged |
Stock of raw material, semi finished &
finished goods, stores & spares, bills receivables, book debts and all
other receivables & movables both present and future sotred or be in or
about of the borrowers factories, premises & godowns situated anywhere |
|
Corporation identity number or foreign
company registrations number of the company
|
U74999DL2001PLC147724 |
|
Name of the company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi – 110037, India |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Equitable mortgage or mortgage of property
by depositing the title deeds |
|
Particular of the charge holder |
State Bank of India & SBI [Consortium] A – 5, South Extension Part – 1, New Delhi –
110049, India E-mail : sanju_professional@yahoo.co.in |
|
Nature or description of the instrument
creating charge |
Annex – A for creation of E M on immovable
properties of the company situated at Krishnapur Vilage Airport Road [Gokul
Road] TQ : Hubli, District Dharwad measuring 26 acres, 22 guntas, 02 Annas
comprised in R. S. No. 98/4, 98/5, 106/2/2A, 106/2B + 1A 1M, 106A/1A2, 107,
108, 109B/2, alongwith all construction thereon or to be constructed thereon
in future the above is to secured nos. two corporate loan sanctioned by SBI
& working capital facilities sanctioned by the SBI consortium SBI is
acting aslead. |
|
Date of the instrument creating charge |
19.06.2006 |
|
Amount Secure by the charge |
Rs. 1178.400 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
Em created by way of depositing of title
deeds with the bank of companies immovable properties situated at Hubli
District Dharwad for securing the two corporate loan given by the SBI of Rs.
83.400 millions & working capital facilities sanctioned by the SBI
consortium of Rs. 1095.000 millions [SBI Rs. 795 milions + HSBC Limited Rs.
300 millions] SBI is acting as lead bank of consortium. SBI having first
charge gor 2 CTL & SBI consortium having first pari-passu charge on above
I.P. for working capital |
|
Description of the property charge whether
it is a charge on |
Immovable properties |
|
Particulars of the Property charged |
At Krishnapur Village Airport Road [Gokul
Road] TQ : Hubli, District Dharwad |
Vishal Retail plans expansion, targets Rs 3000 millions turnover
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 :
The 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.
The 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. 39.95 |
|
UK Pound |
1 |
Rs. 79.41 |
|
Euro |
1 |
Rs. 62.49 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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. |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|