MIRA
INFORM REPORT
|
Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
METRO CASH AND CARRY INDIA PRIVATE LIMITED |
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Registered Office : |
Survey No. 26/3, Industrial
Suburbs, ‘A’ Block, Subramanyanagar, Ward No. 9, Bangalore – 560055,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.01.2001 |
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Com. Reg. No.: |
08-28483 |
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CIN No.: [Company
Identification No.] |
U51909KA2001PTC028483 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM05339F |
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PAN No.: [Permanent
Account No.] |
AACCM4684P |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Wholesale Trading
– Food Products and Non – Food Products and Liquor |
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 4200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Subject is a
subsidiary of Metro Asia Holding GmbH, Germany. Directors are
reported as experienced, respectable and having satisfactory means of their own.
Their trade relations are fair. The company has huge accumulated losses.
Payments are reported as Slow and Delayed. The company can
be considered normal for business dealings at usual trade terms and
conditions, it view of strong promoters. |
LOCATIONS
|
Registered Office : |
Survey No. 26/3,
Industrial Suburbs, ‘A’ Block, Subramanyanagar, Ward No. 9, Bangalore –
560055, Karnataka, India |
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Tel. No.: |
91-
80-22192000/25353827/25092237 |
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Fax No.: |
91-80-22192200/25092236/
22192199 |
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E-Mail : |
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Website : |
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Area : |
2000 sq. ft. |
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Location : |
Rented |
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Branches : |
· No. 26/3, Industrial Suburbs, ‘A’ Block, Subrahmanyanagar, Ward No. 9, Bangalore – 560 055, Karnataka ·
No. 18/1,
18/2, Konanakunte Village, Uttarahalli Hobli, Bangalore South Taluk,
Bangalore – 560 062, Karnataka |
DIRECTORS
|
Name : |
Mr. Bahadur Harsh |
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Designation : |
Managing Director |
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Address : |
212 A, Amayand Regency 8, Museum Road, Bangalore – 560 001, Karnataka |
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Date of Birth/Age : |
01.04.1955 |
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Date of Appointment : |
18.01.2001 |
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Name : |
Mr. Boysen Erk |
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Designation : |
Whole Time Director |
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Address : |
250, 5th Cross, Rajmahal Vilas II Block, Bangalore – 560
094, Karnataka (Louis Pasteur Ring- 11-46397, Bocholt, Germany) |
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Date of Birth/Age : |
19.11.1953 |
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Date of Appointment : |
28.05.2002 |
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Name : |
Mr. Michael Leonard Keelan |
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Designation : |
Whole Time Director |
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Address : |
5/10 & 5/11 Crescent Villa No. 5, Cunningham Crescent Road,
Bangalore – 560 052, Karnataka |
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Date of Birth/Age : |
22.03.1951 |
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Date of Appointment : |
28.05.2002 |
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Name : |
Mr. Jan J. M. Casar |
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Designation : |
Director |
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Address : |
10th Floor, Vayudooth Chambers, 15-16, M. G. Road,
Bangalore – 560 001, Karnataka |
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Date of Appointment: |
27-08-2001 |
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Name : |
Mr. Garga Manoj Kumar |
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Designation : |
Whole Time Director |
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Address : |
905, Olympus II, Acropolis, Hosur Road, Bangalore – 560 030,
Karnataka |
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Date of Birth/Age : |
11.11.1959 |
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Date of Appointment : |
28.05.2002 |
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Name: |
Mr. Casander Jan |
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Designation: |
Whole Time Director |
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Address: |
202 Brigade Orchid, 7/2 Ashley Road, Bangalore – 560 030, Karnataka |
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Date of
Birth/Age : |
20.11.1951 |
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Date of
Appointment: |
28.05.2002 |
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Name: |
Mr. Schmit Erik |
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Designation: |
Whole Time Director |
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Address: |
103/ 1st Floor, Four Seasons Apartments, Brunton Road,
Bangalore – 560 030, Karnataka |
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Date of
Birth/Age : |
26.08.1969 |
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Date of
Appointment: |
06.06.2005 |
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Name: |
Mr. Amburathu John Idicula |
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Designation: |
Whole-time Director |
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Address: |
222, Third Cross, Kormangla First Block, Bangalore – 560 034,
Karnataka, India |
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Tel. No.: |
91-80-22192021 |
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Fax No.: |
91-80-22192020 |
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E-Mail: |
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PAN No.: |
AADPI9701P |
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Date of
Birth/Age : |
08.12.1953 |
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Date of
Appointment: |
22.01.2007 |
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Name: |
Mr. Andreas Oerter |
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Designation: |
Whole-Time Director |
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Address: |
Villa 260/13, Phase I, Adarsh Palm Meadows, Ramagondanahalli, Airport
– Varthur Road, Bangalore – 560 066, Karnataka, India |
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Date of
Birth/Age : |
24.06.1966 |
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Date of
Appointment: |
01.05.2006 |
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Name: |
Mr. Alan Clyton, Foreigner |
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Designation: |
Whole Time Director |
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Name: |
Mr. Dr. Markus Cornelius Dichtl, Foreigner |
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Designation: |
Whole Time Director |
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Name: |
Mr. John Idicula |
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Designation: |
Director |
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Name: |
Mr. Gerardo Monzillo, Foreigner |
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Designation: |
Managing Director |
KEY EXECUTIVES
|
Name: |
Mr. Dugar Mukesh |
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Designation: |
Secretary |
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Address: |
8/ 204, Shriram White House, 15 cross, 6 main, R T Nagar, II Block,
Bangalore – 560 030, Karnataka |
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Date of
Birth/Age : |
28.04.1968 |
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Date of
Appointment: |
04.09.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.12.2006)
|
Names of Shareholders |
|
No. of Shares |
|
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|
Metro Cash &
Carry Western Europe Gmbh |
|
348580519 |
|
Metro
International Beteil Gungs Gmbh |
|
1 |
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Total |
|
348580520 |
(As on 31.12.2006)
|
Category |
|
Percentage
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|
Foreign holdings (Foreign institutional investor(s), Foreign
companie(s), Foreign financial institution(s), Non-resident Indian(s) or
Overseas corporate bodies or Others |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Wholesale Trading
– Food Products and Non – Food Products and Liquor |
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Products : |
·
Agro/
Aquaculture Products ·
Cold
Storage/ Rooms |
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|
Product Range: |
·
Dried Fruits
and Nuts ·
Dairy,
Frozen and Bakery ·
Fresh Fish
and Sea Foods ·
Meat ·
General
Grocery ·
Confectionery ·
Beverages,
Wines and Spirits ·
Detergents
and Cleaning Materials ·
Health and
Beauty ·
Tobacco |
GENERAL
INFORMATION
|
No. of Employees : |
10 |
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Bankers : |
Not Available |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
Price Waterhouse
and Coopers Chartered
Accountants, |
|
Address : |
47/6, M. G. Road,
Bangalore – 560001, Karnataka, India |
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Tel. No.: |
91-80-5587231 |
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Holding
Company : |
Metro Asia
Holding GmbH, Germany Metro Cash and
Carry International Gmbh |
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Subsidiaries : |
·
MGB Metro
Group Buying HK Limited ·
Metro Cash and
Carry Japan KK ·
Metro Cash
and Carry, Romania – SRL ·
MGB Metro
Group Buying Gmbh ·
Metro
Jinjiang Cash and Carry Company Limited ·
Metro Cash
and Carry Vietnam ·
MGI Metro
Group Information Technology Gmbh ·
Metro Cash
and Carry SRO ·
Matro Cash and
Carry Polaska SA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
348580520 |
Equity shares |
Rs.10/- each |
Rs.3485.805 millions |
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|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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|
1] Share Capital |
|
3485.810 |
2852.440 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
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|
3] Reserves & Surplus |
|
0.000 |
0.000 |
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|
4] (Accumulated Losses) |
|
(2417.650) |
(1732.090) |
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|
NETWORTH |
|
1068.160 |
1120.350 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
1147.570 |
140.210 |
|
|
TOTAL BORROWING |
|
1147.570 |
140.210 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
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|
TOTAL |
|
2215.730 |
1260.560 |
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APPLICATION OF FUNDS |
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|
|
|
|
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FIXED ASSETS [Net Block] |
|
1910.680 |
1256.980 |
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|
Capital work-in-progress |
|
512.130 |
3.090 |
|
|
|
|
|
|
|
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INVESTMENT |
|
2.500 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
|
519.350 |
260.990 |
|
|
Sundry Debtors |
|
20.650 |
6.180 |
|
|
Cash & Bank Balances |
|
137.810 |
30.000 |
|
|
Other Current Assets |
|
29.050 |
22.470 |
|
|
Loans & Advances |
|
110.010 |
47.850 |
|
Total
Current Assets |
|
816.870 |
367.490 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
962.300 |
323.010 |
|
|
Provisions |
|
64.150 |
43.990 |
|
Total
Current Liabilities |
|
1026.450 |
367.000 |
|
|
Net Current Assets |
|
(209.580) |
0.490 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
2215.730 |
1260.560 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
|
3863.580 |
3159.950 |
|
|
Other Income |
|
31.900 |
32.810 |
|
|
Total Income |
|
3895.480 |
3192.760 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
(679.880) |
(426.540) |
|
|
Provision for Taxation |
|
5.680 |
3.330 |
|
|
Profit/(Loss) After Tax |
|
(685.560) |
(429.870) |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Financial Charges |
|
35.830 |
1.380 |
|
|
Depreciation |
|
118.460 |
109.590 |
|
|
Other Expenditure |
|
4421.070 |
3508.330 |
|
Total Expenditure |
|
4575.360 |
3619.300 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
(17.60) |
(13.46) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(17.60) |
(13.50) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(24.93) |
(26.26) |
|
|
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
|
(0.64) |
(0.38) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
2.04 |
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
0.80 |
1.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was
incorporated on 18th January, 2001 at Bangalore in Karnataka having
Company Registration Number 28483.
The company was
incorporated with an Authorized Capital of Rs. 5.00 millions and increased the same
many times. Currently the Authorized Capital of the company is Rs. 600.00
millions.
The company
recently opened two super bazaar at Yeshwantpur and Kanakapura Main Road,
Bangalore.
About Company
The company is
based on Business-to-Business (B2B) concept and focuses on meeting all the
needs and requirements of business customers. In a “Cash and Carry” operation
customers do their own order picking, normally pay in cash and carry the
merchandise away.
As is well known
the B2B concept is distinct from B2C (Business to Consumer) format as the first
one is a transaction between two businesses (a modern format of wholesale
trading) whereas the other is a transaction between a business enterprise and a
consumer (one who does not shop to carry on any commercial activity).
Transactions between two business can be where the purchaser is purchasing for
trading/reselling or for processing/conversion into other products which will
sell (e.g. Vegetables and meat, etc purchased by restaurants), or for use while
conducting their commercial activity (e.g. Stationery, etc. used by an office,
coffee/beverages, etc for canteen). The company deal with business customers
and the business model does not allow for access to the distribution Center for
the general public.
The target groups
of the company’s concept are businesses and companies like caterers, hotels,
restaurants, retailers and commercial customers, as well as service providers,
small office and institutions like hospitals and canteens.
Operational
Performance:
The year 2003
was a memorable one, with the inauguration of two state of the art Cash and
Carry complexes (“Distribution Centres”) both at Bangalore. The Distribution
Centre at Subramanyanagar (Yeshwantpur was inaugurated on the 20.10.2003, while
that at Kanakapura was inaugurated on 13.11.2003. With the commencement of
operation, the company has been the foremost to establish Cash and Carry
Complexes in India, which is unique trading platform for modern business needs.
Challenges/
Resistance To Company’s Operations:
The
establishment of cash and Carry complexes created some resistances from the
certain quarters of the trade associations in India, who have filed writ
petitions at the high court of Karnataka and New Delhi. They have prayed that
the company be restrained from carrying on cash & carry operations,
alleging that the company has been engaging in retail trade activities, wherein
Foreign Direct Investment in not permitted. In the mean time, looking in to the
complaints received from various trade associations the Secretariat for
Industrial Assistance (SIA) has started an Investigation and issued a show
cause notice to the company. The company has responded to the issue raised by
SIA and has provided the required information. The matter is being looked in to
by the SIA. The directors do not foresee any adverse impact of aforesaid issues
on the operations of the company.
Fixed assets:
· Plant And Machinery
· Office Equipments
· Vehicles
· Computers
· Building
· Furniture And Fittings
· Software
As per Website:
Concept
Here the advantages over traditional wholesale operations are the better
price / performance rate, the wide scope of the food and nonfood assortments,
assurance as to maintenance of quality and weighment, assured regular availability
of the merchandise and the longer business hours per week.
METRO Cash and Carry's Distribution Centres create a
new supply chain infrastructure for food and general merchandise products for
"business to business" transactions. In effect, these Distribution
Centres bring together, under one roof, small medium and large sized producers,
farmers, agricultural cooperatives and manufacturers on one hand with the
dispersed community of hotels, restaurants, caterers, traders, retailers and
small to medium business enterprises on the other.
The
Benefits of Cash and Carry
The direct contact between the producer and business
customers provided by subject investment in what is essentially distribution
infrastructure makes the supply chain much more efficient. This brings benefits
to both, producers / suppliers and business customers, as well as to the
economy as a whole. Some of these advantages are
· For Small Retailers / Traders
· Special benefits to Food Producers
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 :
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. 42.84 |
|
UK Pound |
1 |
Rs. 84.78 |
|
Euro |
1 |
Rs. 67.32 |
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 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
37 |
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 |
|
