MIRA
INFORM REPORT
|
Report Date : |
26.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
GLOBUS STORES PRIVATE LIMITED |
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Registered Office : |
Rahejas Corner of main Avenue and V P Road, Santacruz (W), Mumbai – 400
054, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.04.1992 |
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Com. Reg. No.: |
11-66474 |
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CIN No.: [Company
Identification No.] |
U45200MH1992PTC066474 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG05986B |
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PAN No.: [Permanent
Account No.] |
AABCG3579Q |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Marketer of a Wide Range of
Readymade Garments. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 960000 |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Management remained non – cooperative (Mr. Kiran) and declined
business and financial details. Subject is a retail venture of Rajan Raheja Group who made good
fortunes in real estate development in metro cities. The company continue to incur heavy losses. However, it’s payments are
correct and as per commitments. The company can be considered for normal business dealings at usual
trade terms and conditions, which some caution. |
INFORMATION
DECLINED BY
|
Name : |
Mr. Kiran |
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Date : |
23.07.2008 |
LOCATIONS
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Registered Office : |
Rahejas Corner of main Avenue and V P Road, Santacruz (W), Mumbai –
400 054, Maharashtra, India |
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Tel. No.: |
91-22-26058731 / 32 / 33 / 34 / 256951111 |
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Fax No.: |
91-22-26057104 / 256942922 |
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E-Mail : |
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Website : |
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Branch Offices : |
Corner of Hill Road and
Waterfield Road, Bandra (West), Mumbai-400059, , Maharashtra, India Tel. No.: 91-22-26436070 Fax No.: 91-22-26434950 D/1 New Delhi South
Extension II, New Delhi-110049, India 113/114 Sir Theyagaraya
Road, Meena Kampala Arcade, Chennai-600017, Tamilnadu, India |
DIRECTORS
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Name : |
Mr. Rajan Raheja |
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Designation : |
Director |
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Address : |
Rahejas 87/1, G B Marg, Juhu, Mumbai – 400 049, Maharashtra, India |
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Date of Birth/Age : |
19.06.1953 |
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Date of Appointment : |
24.01.1994 |
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Name : |
Mr. Satish Raheja |
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Designation : |
Director |
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Address : |
C P 3153, 1211, Geneva 3, Switzerland |
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Date of Birth/Age : |
03.01.1964 |
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Date of Appointment : |
28.03.1996 |
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Name : |
Mr. Akshay Raheja |
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Designation : |
Director |
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Address : |
Rahejas 87/1, G B Marg, Juhu, Mumbai – 400 049, Maharashtra, India |
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Date of Birth/Age : |
25.05.1982 |
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Date of Appointment : |
05.06.2000 |
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Name : |
Mr. Vinayak Aggarwal |
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Designation : |
Director |
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Address : |
502, Gladioli, Off Yari Road, Versova, Andheri (W), Mumbai – 400 061,
Maharashtra, India |
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Date of Birth/Age : |
12.04.1969 |
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Date of Appointment : |
12.06.2000 |
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Name : |
Mr. Viren Raheja |
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Designation : |
Director |
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Address : |
Rahejas 87/1, G B Marg, Juhu, Mumbai – 400 049, Maharashtra, India |
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Date of Birth/Age : |
13.06.1984 |
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Date of Appointment : |
08.11.2004 |
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Name : |
Mr. C. Raveendra |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Vinay Nadkarni |
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Designation : |
Secretary |
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Address : |
A-606 Gayatri Darshan, Kandivli (East), Mumbai – 400 101, Maharashtra,
India |
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Date of Birth/Age : |
04.05.1965 |
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Date of Appointment : |
29.12.2001 |
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Name : |
Mr. Ved Prakash Arya |
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Designation : |
Chief Executive Officer |
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Date of Birth/Age : |
33 years |
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Qualification : |
BE, MBA |
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Experience : |
8 years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
|
Names of Shareholders |
No. of Shares |
|
Rajan Raheja |
1040000 |
|
Suman Raheja |
1040000 |
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Akshay Raheja |
960000 |
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Viren Raheja |
960000 |
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Gstaad Investment and Finance Private Limited |
1500000 |
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Trophy Investment and Finance Private Limited |
1500000 |
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Total |
7000000 |
Equity share breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
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Bodies corporate |
42.86 |
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Directors or relatives of directors |
57.14 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Marketer of a Wide Range
of Readymade Garments. |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
HDFC Limited Ramon House; 169; Backbay Reclamation, Mumbai – 400 020, Maharashtra,
India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G M Kapadia and Company Chartered Accountants |
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Address : |
Tamarind house, 36-B, Tamarind Lane, Fort, Mumbai – 400 001,
Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7000000 |
Equity Shares |
Rs.100/- each |
Rs.700.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7000000 |
Equity Shares |
Rs.100/- each |
Rs.700.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
700.000 |
700.000 |
700.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
9.800 |
9.800 |
9.800 |
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4] (Accumulated Losses) |
(518.752) |
(512.986) |
(593.075) |
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NETWORTH |
191.048 |
196.814 |
116.725 |
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LOAN FUNDS |
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1] Secured Loans |
733.191 |
864.936 |
783.441 |
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2] Unsecured Loans |
0.000 |
0.000 |
318.000 |
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TOTAL BORROWING |
733.191 |
864.936 |
1101.441 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
924.239 |
1061.750 |
1218.166 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
860.642 |
803.829 |
721.820 |
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Capital work-in-progress |
18.553 |
12.819 |
10.187 |
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INVESTMENT |
0.100 |
0.100 |
0.100 |
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DEFERREX TAX ASSETS |
21.418 |
12.018 |
4.821 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1547.831
|
1131.937 |
640.810 |
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Sundry Debtors |
20.486
|
82.066 |
7.960 |
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Cash & Bank Balances |
24.122
|
57.488 |
17.076 |
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Other Current Assets |
582.521
|
343.921 |
74.128 |
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Loans & Advances |
11.710
|
15.047 |
21.697 |
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Total
Current Assets |
2186.670
|
1630.459 |
761.671 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2160.277
|
1397.012 |
286.492 |
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Provisions |
2.867
|
2.806 |
2.720 |
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Total
Current Liabilities |
2163.144
|
1399.818 |
289.212 |
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Net Current Assets |
23.526
|
230.641 |
472.459 |
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MISCELLANEOUS EXPENSES |
0.000 |
2.343 |
8.779 |
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TOTAL |
924.239 |
1061.750 |
1218.166 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
|
1504.184 |
1218.641 |
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Other Income |
|
0.000 |
0.000 |
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Total Income |
|
1504.184 |
1218.641 |
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Profit/(Loss) Before Tax |
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(12.592) |
75.192 |
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Provision for Taxation |
|
0.000 |
0.000 |
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Profit/(Loss) After Tax |
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(12.592) |
75.192 |
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Expenditures : |
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Interest |
|
58.476 |
64.416 |
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Depreciation & Amortization |
|
50.059 |
46.655 |
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Other Expenditure |
|
1408.241 |
1032.378 |
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Total Expenditure |
|
1516.776 |
1143.449 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
(0.84)
|
6.17 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
(0.84)
|
6.17 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(0.41)
|
3.09 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.07)
|
0.38 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
15.16
|
11.51 |
11.91 |
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Current Ratio (Current Asset/Current Liability) |
|
1.01
|
1.16 |
2.63 |
LOCAL AGENCY
FURTHER INFORMATION
History
Launched in January 1998, Subject is a part of the Rajan Raheja group. The
company opened its first store in 1999 at Indore followed by the launch of its
second store in Chennai (T-Nagar). Soon to follow was another in Chennai
located in Adyar. The flagship store in Mumbai was opened on 1st November 2001
followed by a swanky
new outlet in New Delhi in South Extension Part-2.
The sixth & seventh stores are in Bangalore in Koramangala & Richmond
Road respectively. The Eighth store in Ghaziabad at Shipra Mall followed by the
ninth, tenth and eleventh in Kalaghoda, Mumbai, Thane and Ghaziabad, twelfth
store at Kanpur and thirteenth store in Ahmedabad & fourteenth store in
Lucknow.As of May 2008, Subject has opened its 24th Store in Nagpur and the
journey continues...
Infrastructure:
Subject
was formed to contribute in the revolution sweeping the retail industry.
Subject promises to bring about a perceptible change in the way apparel and
lifestyle retailing has been carried so far.
Towards
this end, modern international technology has been brought in and heavy
investments have been made in investing and acquiring the best, tried and
tested processes and procedures of operation.
- Research
& Design
- Production
& Merchandising
- Marketing
& Brand Development
- Service
- Human
resources
- Administering
policies & procedures
Future:
Subject combines state of art international information technology, the
highest quality human resources and sustained financial commitment to realize
the long term vision. They are rapidly expanding and the target is to have an
additional 100 fashion stores by the end of 2012.
THE BRAND
Subject
is on a mission to democratize fashion and be ‘the’ iconic youth fashion brand
in India. They aim to create deep connections with the Indian youth through inspiring
product design, signature store experiences and compelling marketing.
Subject
will undoubtedly generate unique fashion products/trends and powerfully inspire
its young customers to further imagine and experiment in order to self-create
their individual style statements. A dynamic team of passionate employees and
business partners, energized by this mission, is imperative in constantly
evolving and innovating to delight the consumer.
GLOBUS BRANDS:
Youth Fashion Brand
Subject aspires to be ‘the’ iconic youth fashion brand in the country.
Subject is a complete fashion brand – it’s the apparel brand and the
destination brand. Three words which capture the spirit of the youth – vibrant,
maverick and expressive. Subject is exactly that…the vibrant and maverick
designs are not just setting fashion trends but more importantly helping the
customers express themselves.
The entire fashion range comprises of apparel for men, women, kids and
accessories at amazing prices. The range spans across usage occasions – work
wear, campus wear, club and lounge dressing and genres Western, Indian and
mix-n-match. A well researched sizing ensures a good fit for the Indian
silhouettes.
Eye candy fashion
F21 is an accessible hi-fashion brand, offering high-quality
apparel. F21 – the edgy fashion brand - is designed to appeal to the more
experimentative and adventurous consumers who seek cutting edge fashion.
Styling and fabric innovations help F21 offer high end fashion at prices which
are affordable for the young consumers. From everyday casual occasions to
clubwear, F21 promises consumers attention unlimited.
The
Globus Design Hub:
The heart of the business lies in this creative workplace of
the organization named Globus Design Hub. It has been recently launched in July’07
in Andheri-Mumbai and is at its early stages to becoming the leading design
talent floor. It is the most well equipped design studio in India in current
times.
|
Year 2007 |
Globus opens in Aurangabad, Noida/Delhi, Raipur, Ludhiana,
Dahisar/Mumbai, Vashi/Navi Mumbai and Moradabad. |
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.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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 |
|