MIRA
INFORM REPORT
|
Report Date : |
15.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RAP INDIA LIMITED |
|
|
|
|
Registered Office : |
Arora House, 16 Golf Link, Union Park, Khar West, Mumbai – 400052,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
84098 |
|
|
|
|
Date of Incorporation : |
28.12.1994 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U65990MH1994PLC084098 |
|
|
|
|
Legal Form : |
A closely held public limited liability company |
|
|
|
|
Line of Business : |
Entertainment Business |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Maximum Credit Limit : |
USD 1500000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company into developments of Multiplex
Theaters and Malls. Company’s profitability is under pressure. It has some
accumulated losses. Payments are reported as slow but correct. The company can be considered for small to mediocre business dealings
with slight caution, initially. |
LOCATIONS
|
Registered Office : |
Arora House, 16 Golf Link, Union Park, Khar West, Mumbai – 400052,
Maharashtra, India |
|
Tel. No.: |
91-22-26041313 / 14 / 15 |
|
Mobile No. : |
91-9876707449 91-9811888090 |
|
Fax No.: |
91-22-26494657 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. Rupinder Singh Arora |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Chandir G Gidwani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. V. Krishnamurthy |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Ritika Handa |
|
Designation : |
Director |
|
Date of Appointment : |
01.01.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Ravindra Joshi |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters Shareholding |
3664600 |
62.310 |
|
NRI’s / OCB’s |
501 |
0.009 |
|
Private Corporate Bodies |
1198136 |
20.373 |
|
Indian Public |
891004 |
15.150 |
|
Clearing Members |
646 |
0.011 |
|
FII[s] |
126113 |
2.144 |
|
|
5881000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Entertainment Business |
GENERAL
INFORMATION
|
Bankers : |
HDFC Bank Limited |
||||||||
|
|
|
||||||||
|
Facilities : |
[Vehicles Loan from HDFC Bank – Secured by Hypothecation of Vehicles [Includes
Interest accrued and due Rs. Nil.] Principal repayable within one year Rs.
1.018 Millions] |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
A. M. Joshi and Company Chartered Accountants |
|
Address : |
Sukrita 127, Shivaji Park, Dr. M. B. Raut Road, Dadar, Mumbai – 400024 |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
58,81,000 |
Equity Shares |
Rs. 10/- each |
Rs. 58.810
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
58.810 |
50.000 |
50.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
332.194 |
0.057 |
0.000 |
|
|
4] (Accumulated Losses) |
[26.073] |
[33.962] |
[34.000] |
|
|
NETWORTH |
364.931 |
16.095 |
16.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4.188 |
41.295 |
0.000 |
|
|
2] Unsecured Loans |
121.561 |
121.134 |
38.400 |
|
|
TOTAL BORROWING |
125.749 |
162.429 |
38.400 |
|
|
DEFERRED TAX LIABILITIES |
3.284 |
5.111 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
493.964 |
183.635 |
54.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
79.886 |
2.303 |
0.300 |
|
|
Capital work-in-progress |
208.204 |
214.268 |
42.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
0.000
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
0.134
|
0.077 |
0.000 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
248.623
|
1.204 |
17.800 |
|
Total
Current Assets |
248.757
|
1.281 |
17.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
43.005
|
33.729 |
5.500 |
|
|
Provisions |
0.678
|
0.488 |
0.200 |
|
Total
Current Liabilities |
43.683
|
34.217 |
5.700 |
|
|
Net Current Assets |
205.074
|
[32.936] |
12.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.800 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
493.964 |
183.635 |
54.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
18.681 |
0.613 |
2.300 |
|
|
Other Income |
7.019 |
1.600 |
0.000 |
|
|
Total Income |
25.700 |
2.213 |
2.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
6.494 |
0.286 |
0.300 |
|
|
Provision for Taxation |
[1.395] |
0.237 |
0.000 |
|
|
Profit/(Loss) After Tax |
7.889 |
0.049 |
0.300 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Payments to and Provisions for Employees |
3.573 |
0.921 |
0.600 |
|
|
Other Expenditure |
12.145 |
0.844 |
1.300 |
|
|
Depreciation |
3.488 |
0.161 |
0.100 |
|
Total Expenditure |
19.206 |
1.926 |
2.000 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
5.000
|
2.200
|
|
Other Income |
|
2.100
|
2.500
|
|
Total Income |
|
7.100
|
4.700
|
|
Total Expenditure |
|
2.100
|
2.200
|
|
Operating Profit |
|
5.000
|
2.500
|
|
Interest |
|
0.900
|
0.500
|
|
Gross Profit |
|
4.100
|
2.000
|
|
Depreciation |
|
0.900
|
0.900
|
|
Tax |
|
0.000
|
0.000
|
|
Reported PAT |
|
3.200
|
1.100
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
30.70
|
2.21 |
13.04 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
34.76
|
46.66 |
13.04 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.98
|
7.98 |
1.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.02 |
1.88 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.46
|
12.22 |
2.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.69
|
0.04 |
3.12 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE:
The Company is awaiting Building Plans approval for its sites in Jallandhar
& Ludhiana for Construction of Mall-cum-Multiplex-cum-Hotel. The
construction will start .thereafter.
The construction of Mall-cum-Multiplex in Agra is underway and will start
operations in a short time.
Management Discussion and Analysis:
The Indian Economy:
India is the
world's largest democracy in terms of population, with India's Central
Statistical Organisation estimating a population of 1,091 million people as at
31st March, 2005. According to the World Bank, India was the twelfth largest
economy in the world in the year ended 31st March, 2005, with a GDP in nominal
terms estimated to be US$ 731 billion.
India's economy
has recently registered significant growth, with average real GDP (at factor
cost) growth of 6.990 over the year ended 31st March, 2005 and growth of 120%
from the year ended 31st March, 1991.
With this
growth and the prospect of further growth in the Indian economy, transportation
and information connectivity across the country and the development of a
supporting, scalable infrastructure have become increasingly important.
Moreover, as the economy and business centres continue to develop in urban
centres (particularly smaller urban centres), they expect India's overall
population to become more urbanised and the importance of transportation
connectivity is expected to magnify. Moreover, as the Indian economy continues
its growth, its middle class is also growing, with increased disposable income
which has also resulted increased consumerism which in turn has created higher
demand for shopping mall and multiplexes etc. therefore, the aforesaid growth
of the Indian economy has been acting as the growth driver for the overall real
estate sector in India.
Overview of real estate sector in
India:
Real estate is a
major employment driver, being the second largest employer, next only to
agriculture. This is because of the chain of backward and forward linkages that
the sector has with other sectors of the economy.
The size of the real estate industry in India is estimated by FICCI, to be
around US$ 12 billion. This figure is growing at a pace of 30% for the last few
years. Almost 80% of real estate developed in India, is residential space and
the rest comprise office, shopping malls, hotels and hospitals.
This double-digit
growth is mainly attributed to the off-shoring business, including high-end
technology consulting, call centres and software programming houses which in
2003-04, is estimated to have accounted for more than 10 million square feet of
real estate development.
Integrated Retail-Cum-Entertainment
Centers:
An increasing
number of retailers are focusing on malls as opposed to stand-alone
developments.
While the number of shopping malls has seen a surge in the recent past, the
future development is now focussed on providing for leisure activities as well.
A significant number of multiplexes are being developed as an integral part of
retail malls, along with amenities such as food courts and video game
parlours.
India organized
retail share is amongst lowest in world. India had no malls some ten year back.
Now Delhi alone has more than 50 malls. With rising income level and spending
power of Indian urban population these malls are becoming favorite destination
for young population. India has largest population in age group of 15-59
group.
Business:
The Company is a real estate development organization focused on
conceptualising, designing, creating and management of Shopping
Malls-cum-Multiplexes. The Company builds lifestyle shopping centres in the
tier 1 & tier 2 cities of India attracting speciality retailers and
providing local customers with a unique shopping experience and value for
money. They strive to understand the growth strategies of leading brands
looking for increased presence at state-of-the-art outlets, and place equal
emphasis on serving local customers and communities with 'International taste'
for great-value products and services. The Malls are single-point,
multi-utility destinations for shopping, food arid entertainment - built with
well-planned retail amenities that can meet the changing needs of a
new-millennium consumers.
Performance:
The income for the FY 2006-07 was Rs. 25.700 Millions as compared to Rs. 2.212
Millions of the previous year. The profit for FY 2006-07 was Rs. 7.889 Millions
as compared to 5.000 Millions of the previous year.
Primary Segment
The Company is
operating in single segment i.e. Development of Multiplex Theatres and Malls,
hence reporting as defined in accordance with the Accounting Standard [AS] 17
of ICAI is not applicable.
Fixed Assets
- Office Equipment
- Computer
- Vehicles
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Air Conditioning
- Mobile Hand Set
Profile
Based in Mumbai, RAP Media is a real estate development organization
focusing on conceptualising, designing, creating and management of world-class
Shopping Malls-cum-Multiplexes. There has been a marked shift in the shopping
preferences of consumers across the globe, and more and more people now opt for
the convenience of one-stop shopping complexes instead of visiting standalone
stores. RAP Media builds lifestyle shopping centres in the tier 1 & tier 2
cities of India attracting specialty retailers and providing local customers
with a unique shopping experience and great value for money. They strive to
understand the growth strategies of leading brands looking for increased
presence at state-of-the-art outlets, and place equal emphasis on serving local
customers and communities with “international taste” for great-value products
and services. RAP Malls are single-point, multi-utility destinations for
shopping, food and entertainment – built with well-planned retail amenities
that can meet the changing needs of new-millennium consumers.
As shoppers today increasingly look for a shopping-fun-food
experience – much beyond the original scope of traditional shopping malls – RAP
Media has realized the importance of developing unique lifestyle centres across
the country with facilities on par with a cosmopolitan megapolis. They are a
professionally managed company ensuring complete success and proper management
of state-of-the-art malls-cum-multiplexes with emphasis on convenience, comfort
and speed of operations. RAP Media also develops five-star mall hotels, offering
great-value facilities to business and leisure travellers, building customer
loyalty and ensuring maximum footfall. Architectural excellence, superior space
planning, robust construction and top-notch facilities are the highlights of
all RAP projects – pleasing, vibrant places custom-built to offer the ultimate
in shoppertainment. There are provisions for sleek, top-of-the-line escalators,
glass capsule lifts, latest technology fixtures and central air conditioning,
which will combine to create a one-of-its-kind ambience for valued visitors.
RAP lifestyle centres house the finest retail brands for world-class shopping
and there is better place to experience the fun and excitement which spice up
the day out at the mall. Whether it is a movie at the multiplex, chilling out
at sports bars, or thrills galore at gaming zones, RAP Malls offer myriad
recreations for all ages. And there is always a tantalising selection of
restaurants and food joints at every mall – whetting the appetite for gourmet
dishes or fun dining, depending upon the mood. From great-value shopping to
best leisure activities and fine dining, RAP Malls offer a true feast of senses
which will please the connoisseurs of the Lifestyle Age.
Building
Excellence
MISSION
RAP Media is committed to redefining retail shopping experience and developing
lifestyle shopping centres where footfalls automatically turn into conversions.
They focus on creating Malls-cum-Multiplexes in the non-metro cities of India
with a view to providing new growth opportunities to businesses and catering to
quality-conscious consumers across the country.
VISION
Enabling businesses to maximise the value of investment through effective brand
positioning across India and building customer loyalty through world-class
amenities & great-value services.
LEADERS
Mr. Rupinder Singh Arora, Managing Director
Mr. Rupinder Singh Arora, Managing Director of RAP Media,
has impelled the company to immense heights. He is a Commerce and Law graduate
from the Bombay University, and has 35 years of invaluable experience in
industry verticals such as wind energy generation, manufacturing and export of
polyester staple fibre, garment exports, construction and real estate
development. His interest and expertise in real estate development has kept the
company ahead in today’s rapidly evolving market.
Ms Ritika Arora, Whole-time Executive Director
Ms Ritika Arora, whole-time Executive Director of RAP Media,
holds a B.Sc in Management-Finance from Purdue University, USA, and a Diploma
in Event Management. Ritika has valuable experience in Banking and General
Management, and made significant contributions towards the organisation’s
growth.
Mr. Chandir Gobing Gidwani, Director
Mr. Chandir Gobing Gidwani, Director of RAP Media holds a
Master’s degree in Commerce and is a Fellow Member of the Institute of
Chartered Accountants of India. Mr. Gidwani has two decades of valuable
experience in finance, accounts, audit and senior general management. He is the
Managing Director of Centrum Finance Ltd. and responsible for all strategic
decisions of the company. Mr. Gidwani is actively involved in Business
Planning, Corporate Structuring and Investment Consultancy, Placement of Debt
& Equity, ECB Structuring and International Finance.
Mr. K.V. Krishnamurthy, Director
Mr. K.V. Krishnamurthy, Director of RAP Media, is a B.Com,
F.C.A., F.I.I.B. and Retd. Chairman & Managing Director of Bank of India.
He has a rich and varied experience of 33 years and is regarded as one of the
best practicing bankers of India’s Public Sector Banking Industry. His areas of
specialization include both Domestic and International Banking, while he has
extensive expertise in Treasury Management, Risk Management, Forex Management
and Human Resources Development.
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.29 |
|
UK Pound |
1 |
Rs.77.57 |
|
Euro |
1 |
Rs.57.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
33 |
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, we have no basis upon which to
recommend credit dealings |
No Rating |
|