MIRA
INFORM REPORT
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Report Date : |
15.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
MADURA GARMENTS LIFESTYLE RETAIL COMPANY LIMITED |
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Registered Office : |
No.110 4th Cross, 5th Block, Koramangala Industrial
Layout, Koramangala, Bangalore 560095, Karnataka |
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Country : |
India |
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Date of Incorporation : |
01.05.2007 |
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Financial (as on): |
31.03.2008 |
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Com Reg No: |
08-42671 |
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CIN No.: [Company
Identification No.] |
U18101KA2007PLC042671 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM11824B |
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PAN No.: [Permanent
Account No.] |
AAFCM0483M |
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Legal Form : |
A Closely held Public Limited Liability company. |
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Line of Business : |
Importer and Retailer of Apparel Accessories. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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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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Status : |
New Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Aditya Birla Group, one of the largest industrial
house of India. Promoters are strong and resourceful. Their combined means are large.
However, the group has entered in to retail and lifestyle business through
the subject and huge ambitious plans in hand. The company has negative networth and hence it can be considered for
business on safe and secured trade terms and conditions, Initially. |
INFORMATION PARTED
BY
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Name : |
Mr. Deepanjan Bandyppadhy |
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Designation : |
Manager |
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Mobile no.: |
91-9886000837 |
LOCATIONS
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Registered Office : |
No.110 4th Cross, 5th Block, Koramangala
Industrial Layout, Koramangala, Bangalore 560095, Karnataka |
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Tel. No.: |
91-80-66915000 / 66182000 |
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Mobile No.: |
91-9886000837 |
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Fax No.: |
91-80-66915050 |
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E-Mail : |
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Website: |
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Area: |
4000 Sq. fts |
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Location: |
Leased |
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Corporate
Office: |
Aditya Birla Group, 111-112, 3rd Cross, 1st
Main, 7th Block Koramangala, Bangalore 560095, Karnataka, India. |
DIRECTORS
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Name : |
Mr. Vikram Dhondu Rao |
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Designation : |
Director |
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Address: |
No.395, 16th Main, 2nd A Cross, 3rd
Block Koramangala, Bangalore 560034, Karnataka. |
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Date of Birth/Age : |
10.09.1950 / 58 years |
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Qualification : |
Post Graduate |
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Date of Appointment : |
01.05.2007 |
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Name : |
Mr. Adesh Kumar Gupta |
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Designation : |
Director |
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Address : |
701, Tagore Avenue, Tagore Road, Santactuz, Mumbai 400054,
Maharashtra. |
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Date of Birth/Age : |
11.09.1956 / 55 years |
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Qualification : |
Post Graduate |
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Date of Appointment : |
01.05.2007 |
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Name : |
Mr. Ashish Dixit |
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Designation : |
Director |
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Address : |
E-405, Raheja residency, 8th C, Main Road, Koramangala. 3rd
Block, Bangalore 560034, Karnataka. |
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Date of Birth/Age : |
15.07.1969 / 47 years |
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Qualification : |
Post Graduate |
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Date of Appointment : |
01.10.2007 |
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Name : |
Mr. Hemchandra Gurunath Javeri |
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Designation : |
Director |
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Address : |
1-A, Fairfield, Benson Cross Road, Benson Town, Bangalore 560046,
Karnataka. |
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Date of Birth/Age : |
12.04.1962 |
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Date of Appointment : |
01.05.2007 |
KEY EXECUTIVES
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Name : |
Mr. George M Santacroce. |
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Designation : |
Chief Executive Officer. |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 23.06.2008)
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Names of Shareholders |
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No. of Shares |
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Mr. Laxminarayan |
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49994 |
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Mr. Ashish Dikshit |
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1 |
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Mr. Adesh Kumar Gupta |
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1 |
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Mr. Manoj Kedia |
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1 |
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Ms. Pinky Mehta |
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1 |
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Mr. Anil Rustogi |
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1 |
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Mr. Vikram Dhondu Rao |
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1 |
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Total |
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50000 |
Equity Share Break up (percentage of total equity):
(As on 31.10.2008)
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Category |
Percentage |
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Bodies corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Importer and Retailer of Apparel Accessories. |
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Products: |
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Imports : |
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Products : |
Finish goods |
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Countries : |
Europe, USA |
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Terms : |
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Selling : |
Cash |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Customers : |
End Users |
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No. of Employees : |
15 |
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Bankers : |
o
HSBC Bank Limited, M.G. Road, Bangalore 560025, Karnataka. o
HDFC Bank Limited, Salco
Centre, Richmond Road, Bangalore 560025, Karnataka. |
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Facilities: |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins and Sells, Chartered Accountants |
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Address : |
Deloitte Centere, Anchorage II, 100/2, Richmond Road, Bangalore
560025, Karnataka. |
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Name of the
Holding Company: |
Laxminarayan Investment Limited. CIN: U65910GJ1994PLC022685 |
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Associates: |
Birala Securities Limited(BSL) |
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Subsidiaries: |
o
Aditya Vikram Global Trading House Limited (AVGTHL) o
AV Trans Works Limited, Canada(AVTL), (Subsidiary of ABMWL) o
BGFL Corporate Finance Company Limited (BGCFPL) o
Birla Global Finance Company Limited (BGFCL) o
Birla Insurance Advisory and Broking
Services Limited (formerly Birla Insurance Advisory Services Limited.)
(BIABSL) (Subsidiary of BGCFPL) o
Birla Sun Life Insurance Company Limited (BSLICL) o
Birla Technologies Limited (CCPL) o
Madura Garments Export Limited (MGEL) o
Peter England Fashion and Retail Limited (PEFRL) (Subsidiary of LIL) o
Millman Insurance (Subsidiary of MWI) o
Minacs Kft. (Subsidiary of Minacs Gmbh) o
Minacs Limited (Subsidiary of MWI) o
Minacs Worldwide S.A. de C.V (Subsidiary of MWI) o
PSI Data Systems Limited (PSI) o
The Minacs Gmbh (Subsidiary of Minacs Limited) o
The Minacs Group (Subsidiary of MWI) o
Transworks Inc. USA (Subsidiary of ABMWL) o
Controlling Companies o
Laxminarayan Investments Limited (LIL)- Holding Company o
Aditya Birla NAVO Limited (ABNL)-Ultimate holding Company. o
Crafted Clothing Private Limited. |
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Joint Ventures: |
o
Birla sun Life Asset Management Company Limited (BSAMC) o
Birla Sun Life Distirbution Company Limited (BSDL) o
Birla Sun Life Trustee Company Private Limited (BSTPL) o
Birla-NGK Insulators Private Limited (BNIPL) o
IDEA Cellur Limited (IDEA) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity shares |
Rs.10/- Each |
Rs.0.500 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity shares |
Rs.10/- Each |
Rs.0.500 Million |
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Note: Of the above 49994 shares are held by the holding company
Laxminarayan Investsments Limited. |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.500 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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(106.533) |
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NETWORTH |
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(106.033) |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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213.100 |
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TOTAL BORROWING |
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213.100 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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107.067 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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2.951 |
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Capital work-in-progress |
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86.759 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
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Sundry Debtors |
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1.502 |
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Cash & Bank Balances |
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1.100 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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45.334 |
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Total
Current Assets |
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47.936 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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30.579 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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30.579 |
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Net Current Assets |
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17.357 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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107.067 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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01.05.2007 to
31.03.2008 |
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Sales Turnover |
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1.502 |
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Other Income |
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0.000 |
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Total Income |
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1.502 |
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Profit/(Loss) Before Tax |
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(105.933) |
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Provision for Taxation |
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0.600 |
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Profit/(Loss) After Tax |
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(106.533) |
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Expenditures : |
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Cost of Goods Sold |
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1.432 |
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Employees Benefits |
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19.558 |
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Administrative Expenses |
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78.087 |
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Interest |
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8.016 |
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Depreciation & Amortization |
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0.342 |
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Total Expenditure |
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107.435 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
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PAT / Total Income |
(%) |
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(7092.74) |
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Net Profit Margin (PBT/Sales) |
(%) |
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(7052.80) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(208.17) |
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Return on Investment (ROI) (PBT/Networth) |
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1.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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(2.30) |
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Current Ratio (Current Asset/Current Liability) |
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1.57 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCE:
Local Customers
REVIEW OF PERFORMANCE:
The Company was incorporated on May 1st 2007,. During the
year, the first retail property at Bangalore was
Signed. The Company has engaged international consultancy firms for
store design and time bound projects execution and program management.
Mr. George M Santacroce was appointed as the Chief Executive Officer to
lead the management team. The management team comprises of functional experts
with rich experience in international retail industry.
Negotions an tie-ups with several international brands were effected
during the year.
The Company commenced business and achieved a sales turnover of Rs.0.150
Millions, which is expected to substantially increase in the coming year.
Prospects:
Indian economy has been registering consistent growth rate of above 8%
from fiscal FY04 onwards. The GDP estimates and overall growth trajectory has
been aggressive. The purchasing power of Indian consumer is increasing day by
day. The organized apparel market has had a marked and evolutionary growth (13%
YOY, greater than the GDP growth) over the last two years and this evolutionary
pattern is only set to be pronounced in future. The increasing purchasing power
has its effect on the lifestyle requirements of the Indian consumer. The
increasing purchasing power has its effect on the lifestyle requirements of the
Indian consumer. There is an increasing demand for branded super premium
apparel and accessories. This provides an opportunity to the company to explore
this nascent market by offering super premium apparel, accessories and services
through international retail experience to its intended consumers.
Fixed Assets:
Tangible Assets:
·
Computer and Computer Equipment
·
Office Equipments
·
Motor Vehicle
Form 8:-
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This form is for |
Creation of
charge. |
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Corporate identity
number of the company |
U18101KA2007PLC042671 |
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Name of the
company |
MADURA GARMENTS LIFESTYLE RETAIL COMPANY LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
No.110 4th Cross, 5th Block, Koramangala
Industrial Layout, Koramangala, Bangalore 560095, Karnataka |
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Type of charge |
o
Book Debts o
Movable
Property (not being pledge) o
Floating
Charge |
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Particular of
charge holder |
CIN:
L65920MH1994PLC080618 Name: HDFC Bank
Limited. Address: Salco
Centre, Richmond Road, Bangalore 560025, Karnataka. E-Mail: shyam.nair@hdfcbank.com |
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Nature of
description of the instrument creating or modifying the charge |
Letter of
Hypothecation of stock and book debts |
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Date of
instrument Creating the charge |
02.07.2008 |
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Amount secured by
the charge |
Rs.320.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
As may be agreed between the Board of Directors and the bank from time to
time. Terms of
Payments: o
Cash
Credit-on demand o
Working
Capital Demand Loan-Unless demanded earlier principal amount to be repaid as
bullet payment on the maturity date. Margin: o
For Cash
credit and Working Capital Demand Loan-25% o
Bank
Guarantees- Cash Margin 100% (tenor of Bank guarantees greater than 3 years) o
Letters of
Credit- NIL o
Or as
stipulated by the bank from time to time. Extent and
Operation of the Charge: Hypothecation by
way of first exclusive charge on the entire stock and book debts of the
company both present and future. |
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Short particulars
of the property charged |
Hypothecation by
way of first exclusive charge on the entire stock and book debts of the
company both present and future. |
Websites Details Attached:
News:
BANGALORE: Kumar Mangalam Birla is putting his best foot forward almost
10 years after storming the fashion space with the acquisition of subject. In his
most ambitious retail foray move, he is scripting India’s high-street luxury
retail play similar to Barneys or Harvey Nichols.
Madura Garments Lifestyle Retail Company, a 100% subsidiary of AV Birla Nuvo,
is working on setting up 12-14 stores to meet the fashion needs of the urban
Indian man. The new store chain — The Collective — will open doors in
Bangalore, Mumbai and New Delhi initially.
The retail initiative will bring in some of the world’s edge of the fashion,
super-premium brands like 7 For All Mankind and True Religion to India for the
first time. Then there is the enduring high-end names like Kenneth Cole, Ted
Baker and Valentino entering the market through a distribution deal.
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.49.46 |
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UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
-- |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
32 |
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 |
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|
>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 |
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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 |
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