MIRA
INFORM REPORT
|
Report Date : |
14.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NEXT RETAIL INDIA LIMITED |
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Formerly Known As : |
E MART INDIA LIMITED |
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Registered Office : |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.12.2003 |
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Com. Reg. No.: |
143371 |
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CIN No.: [Company
Identification No.] |
U51395MH2003PLC143371 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKE00404F |
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PAN No.: [Permanent
Account No.] |
AABCE3142P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Retailing of Consumers Electronics and Home Appliances. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4008336 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established electronic retail chain. It is now owned
by Videocon Group, a large sized consumer electronic producers. Trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The company is expected to do well under new management. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra,
India |
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E-Mail : |
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Corporate Office 1: |
Shiv Ashish Complex, Sakinaka, 1st Floor, Andheri (East),
Mumbai – 400072, Maharashtra, India |
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Corporate Office 2: |
99-19A, Siva Shanmugam Street, Tambaram H O, Chennai – 600045, India |
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Tel No.: |
91-44-45076001/ 45076002 |
DIRECTORS
|
Name : |
Mr. Pradeepkumar Nandlal Dhoot |
|
Designation : |
Director |
|
Address : |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra,
India |
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|
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|
Name : |
Mrs. Chandrakant Sidram Jyoti |
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Designation : |
Director |
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Address : |
Twin Bunglow 12, Pratap Nagar, Aurangabad – 431005, Maharashtra, India |
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|
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|
Name : |
Mr. Rajendra Motilal Dungarjal |
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Designation : |
Director |
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Address : |
30 Videocon Twin Bunglow, Pratap Nagar, Aurangabad, Maharashtra, India |
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|
|
|
Name : |
Mr. Nipun Gopaldas Gupta |
|
Designation : |
Director |
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Address : |
C-89, Tara Kutir, Town Centre Sidco, Aurangabad, Maharashtra, India |
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|
|
|
Name : |
Mr. Subho Shah |
|
Designation : |
Director |
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Address : |
502, Om Apartments, M B Raut Road, Shivaji Park, Mumbai – 400038,
Maharashtra, India |
|
Date of Birth/Age : |
22.11.1956 |
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Date of Appointment : |
20.12.2006 |
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|
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Name : |
Mr. Naveenkumar Mandhana |
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Designation : |
Director |
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Address : |
907-908/A, Akruti Nova, Saiwadi, Opp. Teli Galli Andheri (East),
Mumbai – 400069, Maharashtra, India |
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Date of Birth/Age : |
18.09.1956 |
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Date of Appointment : |
20.12.2006 |
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Other Directorship Companies : |
Sidharth Assets and Services Private Limited Director U74920MH2006PTC161438 Videocon Appliances Limited Director U99999MH1988PTC046445 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 17.11.2003)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
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Mr. Pradeepkumar Nandlal Dhoot |
|
24700 |
|
Mrs. Chandrakant Sidram Jyoti |
|
100 |
|
Mr. Rajendra Motilal Dungarjal |
|
100 |
|
Mr. Nipun Gopaldas Gupta |
|
100 |
|
Mr. Anirudh V. Dhoot |
|
24700 |
|
Mr. Vinod Kumar Bohra |
|
100 |
|
Mr. Sunil Kumar Samriya |
|
100 |
|
Mr. Vasant Shesharao Kakads |
|
100 |
|
|
|
|
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Total |
|
50000 |
(As on 31.03.2007)
|
Category |
|
Percentage |
|
|
|
|
|
Bodies Corporate (not mentioned above) |
|
90.02 |
|
Directors or relatives of directors |
|
9.98 |
|
|
|
|
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Retailing of Consumers Electronics and Home Appliances. |
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Products : |
· Electronics · Home Appliances |
GENERAL
INFORMATION
|
Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
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|
Name : |
Shashank Suvarnapathaki Chartered Accountant |
|
Address : |
3801, Barde Lane, Navi Peth, Ahmedabad – 414001, Maharashtra, India |
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Financial Institute : |
IDBI Trusteeship
Services Limited Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai
– 400001, Maharashtra, India |
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Associates/Subsidiaries : |
Sidharth Assets and Services Private Limited U74920MH2006PTC161438 Videocon Appliances Limited U99999MH1988PTC046445 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 Millions |
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|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100200000 |
Equity Shares |
Rs.10/- each |
Rs.1002.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1002.000 |
2.000 |
0.500 |
|
|
2] Share Application Money |
0.000 |
50.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.084 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
(6.954) |
0.000 |
|
|
NETWORTH |
1002.084 |
45.046 |
0.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
1.439 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1003.523 |
45.046 |
0.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
182.426 |
89.979 |
16.173 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
796.447
|
313.906 |
23.017 |
|
|
Sundry Debtors |
491.521
|
740.687 |
10.193 |
|
|
Cash & Bank Balances |
81.630
|
6.571 |
65.999 |
|
|
Other Current Assets |
41.657
|
42.390 |
0.000 |
|
|
Loans & Advances |
369.497
|
47.497 |
8.150 |
|
Total
Current Assets |
1780.752
|
1151.051 |
107.359 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
953.060
|
1193.007 |
141.569 |
|
|
Provisions |
6.595
|
2.977 |
0.000 |
|
Total
Current Liabilities |
959.655
|
1195.984 |
141.569 |
|
|
Net Current Assets |
821.097
|
(44.933) |
(34.210) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
Preliminary Expenses |
0.000 |
0.000 |
0.068 |
|
|
Profit and Loss Account |
0.000 |
0.000 |
18.469 |
|
|
|
|
|
|
|
|
TOTAL |
1003.523 |
45.046 |
0.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
2860.125 |
1752.577 |
|
|
Other Income |
|
0.872 |
0.000 |
|
|
Total Income |
|
2860.997 |
1752.577 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
15.028 |
12.943 |
|
|
Provision for Taxation |
|
7.989 |
1.428 |
|
|
Profit/(Loss) After Tax |
|
7.039 |
11.515 |
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Purchases made for re-sale |
|
2452.123 |
1560.997 |
|
|
Salaries, Wages, Bonus, etc. |
|
80.221 |
39.047 |
|
|
Managerial Remuneration |
|
0.000 |
0.000 |
|
|
Payment to Auditors |
|
0.022 |
0.023 |
|
|
Interest |
|
0.039 |
0.000 |
|
|
Insurance Expenses |
|
0.000 |
0.000 |
|
|
Power & Fuel |
|
9.154 |
3.169 |
|
|
Depreciation & Amortization |
|
8.056 |
3.146 |
|
|
Other Expenditure |
|
296.354 |
133.252 |
|
Total Expenditure |
|
2845.969 |
1739.634 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.25
|
0.66 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.52
|
0.74 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.76
|
1.04 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.29 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.96
|
26.55 |
283.138 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.85
|
0.96 |
0.76 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number (CIN) Foreign company registration number |
U51395MH2003PLC143371 |
|
Name of the
Company |
NEXT RETAIL INDIA LIMITED |
|
Address |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra,
India |
|
This form is for |
Creation of
Charge |
|
Type of Charge |
Book Debts Movable Property
(Not being pledge) |
|
Particulars of the
charge holder |
IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai
– 400001, Maharashtra, India CIN : L65190MH2004GOI148838 Email : sn.baheti@idbi.co.in |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed of
Hypothecation dated 25.05.2007 secured inter alia, by a first charge of all
the borrower movable including movable plant and machinery, machinery stores,
tools and accessories whether installed or not, book debts, stocks of raw
materials, semi finished goods and finished goods and work in progress and
consumable stores both present and future more specifically mentioned in the
deed of hypothecation herewith. |
|
Date of the
instrument creating or modifying the charge |
25.05.2007 |
|
Amount secured by
the charge |
Rs.500.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: Cash Credit :
BPLR 175bps Payable monthly Terms of
Repayment: Not Applicable Margin: For the Purpose
of Fund Based Limits: Inventories
(Finished Goods, Packaging Materials) – 25% Book Debts (upto
180 days) – 25% Extent and
operation of the Charge: Hypothecation of
Stocks of Packaging Materials, Finished Goods, Stores, Book Debts and all
other Current Assets of the Company, including stock in transit, on Pari
Passu with the other working capital banks. |
|
Short particulars
of the property charged (including location of the property) |
The whole of the
movable properties of the borrower including its plant and machinery,
machinery spares, tools and accessories whether installments or not book
debts, stocks of raw materials, semi finished goods and finished goods, work
in progress, consumable stores, both present and future. |
|
Particular of the
present modification |
NA |
Profile:
Subject is one
of the emerging giants in the organized retailing of consumer electronics and home
appliances products which has been formed to tap the immense potential of the
Rs.500000.000 Millions retail industry. Company is a project developed by a
consortium of investors and professionals with more than 3 decades of retail
experience.
Under the aegis of Subject, Company has now become the only consumer electronics
chain that delivers across India with its presence in 16 states and over 384 outlets spanning across all
metros and mini metros in the country.
Aiming to be a multi-brand
multi-product outlet it stocks an entire range of consumer
durables right from Air-Conditioners, LCD and Plasma TVs, Home Theatre systems,
Washing Machines, Refrigerators, Microwaves to small Home Appliances. Subject has some of the topmost
brands such as Electrolux, HCL,
Hyundai, Kelvinator, Kenstar, LG, Nokia, Onida, Philips, Sahara, Samsung,
Sansui, Toshiba, Videocon including its own brand under its
stable. Subject has an ambitious plan to create a network of more than 400
retail outlets and a targeted turnover of more than Rs.7000.000 Millions by
next year.
Being India’s largest chain of electronics showroom, company promises to deliver across
the country subject to the availability of a company outlet in the state. Further company is the only chain to do
institutional supplies across all product categories and across brands. Subject has always stood by its
promise of “Best brands. Best
bargains.”
Next Retail Buys BCCL’s Planet M
NEW DELHI:
Bennett, Coleman and Company
Limited (BCCL), which publishes
The Times of India and The Economic
Times, announced on Tuesday the sale
of its music retail brand Planet M to subject The sale is in keeping with the Times Group's overall
strategic vision and growth impetus.
Launched in 1999, long before organised retail became a business
buzzword, Planet M grew to become the country's largest
music retailing business. In
fact, the chain is probably India's first organised retail chain in the music entertainment space.
Planet M today has 146 outlets spread across the country, from Jammu in the
north to Kochi in the south, from Mumbai in the west to Tinsukhia (Assam) in
the east. This truly pan-Indian footprint is distributed across 74 own stores
and 72 satellite outlets. Most Planet M stores and outlets are strategically
located in either high streets or prominent malls, offering not only high
visibility but enhanced footfalls as well.
In a network spanning 42 cities, Planet M boasts of over 5.5 million annual
walk-ins across its
stores and a healthy conversion rate of close to 40%. As a result, the chain
has been experiencing robust growth of over 33% CAGR.
Arun Arora of the Times group said: "They were looking for a partner who
shared our vision about the business and was not going to be merely a financial
buyer. It gives me great pleasure to announce that we have now found a good
home for Planet M, where excellent care will be taken of the brand,
the employees and the growth of the business.''
Mr. Venugopal Dhoot (Retail Next is retail
arm of Videocon) said: "It is a great strategic fit with their aggressive retail plans.'' Lazard India
advised BCCL on this
deal.
Press Release:
Next Retail eyes regional buys to expand retail breadth
Expects to add
muscle in IT, mobile telephone categories
The company has also decided to
retain the identity of its acquired retail brands such as Plugin
and Planet M.
Purvita Chatterjee
Mumbai, Nov. 16 Next Retail India Pvt Ltd, owned by the Dhoot family of
Videocon, is planning to acquire regional players to grow in the retail space.
After bagging national retail chains such as the
Raymond-promoted Plugin stores and the more recent Planet M, the music and
entertainment retail arm of Bennett, Coleman & Co, Next is now eyeing smaller regional chains which are keen
to be a part of its retail company.
Mr K.S. Raman, Director, Next Retail India, told Business Line: “We are ready to take in regional players who want to
join us.
These could be players who have products related to our
category such as mobile stores and IT-related chains.”
With consumer electronics and home appliances comprising the
biggest categories at its 300-odd Next stores, the retailer
expects to have added muscle in other related categories such as IT and mobile
telephones to grow its retail
business further.
Meanwhile, the retailer has decided to retain the identity
of its acquired retail
brands such as Plugin and Planet M. As Mr Raman says: “We will maintain the
identity of our acquired retail brands. In fact, in places where we have large formats, we
will add their brands and dedicate separate floors to retail their products.”
Besides, beefing up their portfolio of products will be an
added task for the retailer.
For instance, the newly-acquired outlets under Planet M
would have added products in music hardware.
“We would add on more consumer durables which are available
at Next at our new Planet M stores. There would be
expertise provided by us in the area of music hardware,” says Mr. Raman. Planet
M has been floated as a subsidiary of Next retail and has added 145 stores under it.
Meanwhile, the 10 Plugin stores have retained their identity
in places such as Pune, where the brand had a relatively strong presence.
Having been present for the past two years, the Rs 1,000-crore
Next retail
claims to be the leader in its category. “It is the speed with which we have
grown in the past two years that has made us the largest retailer today,” says
Mr. Raman.
Private label
With its 300 stores and 28 branches spread across 17 States,
Next has been
trying to build its private label under this brand.
“Sourcing is the key in this business as it is not easy to
have private labels. Just about 4 per cent of our sales come from private
labels under the Next
brand,” says Mr. Raman.
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.42.16 |
|
UK Pound |
1 |
Rs.82.28 |
|
Euro |
1 |
Rs.65.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
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 |
|