MIRA INFORM REPORT

 

 

Report Date :

19.11.2008

 

IDENTIFICATION DETAILS

 

Name :

ETAM FUTURE FASHION PRIVATE LIMITED

 

 

Registered Office :

Knowledge House, Shyam Nagar, Opp. Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai – 400060, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

26.08.2006

 

 

Com. Reg. No.:

164092

 

 

CIN No.:

[Company Identification No.]

U51909MH2006PTC164092

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Proposed Manufacturer of Fashion Fabrics and Accessories

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 213000

 

 

Status :

New Company

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Mr. Nilesh (Account Department), Ms. Ranjita (Account Assistant) and one Account Manager (name unknown) denied business and financial details.

 

Subject is a joint venture between Etamint S.A., Belgium and PFH Entertainment, Mumbai (Pantaloon Group)

 

Trade relations are fair. Payments are reported as slow of entire pantaloon group.

 

The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

Knowledge House, Shyam Nagar, Opp. Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai – 400060, Maharashtra, India

Tel. No.:

91-22- 266442200/ 267706633

Fax No.:

91-22- 67706667

E-Mail :

ROC.info@pantaloon.com

ravindra.gupta@pantaloon.com

balkishan.chandak@etamfuture.in

 

 

DIRECTORS

 

Name :

Mr. Krishna Kant Rathi

Designation :

Director

Address :

B/72, Dakshina Park, Plot No.15, N S Road, 10th JVPD Scheme, Mumbai – 400049, Maharashtra

Date of Birth/Age :

30.12.1961

Date of Appointment :

26.08.2006

 

 

Name :

Mr. Chandra Prakash Toshniwal

Designation :

Director

Address :

A- 603, Great Eastern Link, Ram Mandir Road, Goregaon (West), Mumbai – 400104, Maharashtra

Date of Birth/Age :

29.09.1966

Date of Appointment :

23.01.2007

 

 

Name :

Mr. Kanchan Kumar Pant

Designation :

Director

Address :

P1, Golden Enclave, Air Port Road, Bangalore – 560017, Karnataka, India 

Date of Birth/Age :

01.09.1964

Date of Appointment :

27.11.2006

 

 

Name :

Mr. Harve Guionie

Designation :

Director

Address :

39 Rue De Babylone Paris 07, 75007 France

Date of Birth/Age :

28.07.1954

Date of Appointment :

23.01.2007

 

 

Name :

Mr. Richrad Simonin

Designation :

Director

Address :

62 Palace Court, Londers, W240b, Royaume Uni, France

Date of Birth/Age :

19.09.1952

Date of Appointment :

23.01.2007

 

 

Name :

Mrs. Elizabeth Cunin

Designation :

Director

Address :

19- Rue Brezin, Paris 14, France 75014

Date of Birth/Age :

17.09.1960

Date of Appointment :

23.01.2007

 

 

Name :

Mr. Kailash Mahesh Anand Bhatia

Designation :

Director

Address :

Flat No.2603, Odyssey – 2, Hiranandani Gardens Powai, Mumbai – 400076

Date of Birth/Age :

01.01.1956

Date of Appointment :

18.06.2007

 

 

Name :

Mr. Sanjay Ramprasad Rathi

Designation :

Director

Address :

C/6, Kaveri- Mahima, First Floor, Bangur Nagar, Goregaon (West), Mumbai – 400090

Date of Birth/Age :

06.05.1965

Date of Appointment :

10.03.2008

 

 

KEY EXECUTIVES

 

Name :

Mr. Nilesh

Designation :

Account Department

Tel No.:

91-22- 67706633

 

 

Name :

Mrs. Ranjhita

Designation :

Account Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2008

 

Names of Shareholders

 

No. of Shares

Indus League Clothing Limited

 

4999999

Etamint SA

 

10000000

Pfh Entertainment Limited

 

5000000

Total

 

19999999

 

Indebtness of the company: Rs.0.011 Million

 

AS ON 30.06.2008

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

50.01

Bodies corporate

 

49.99

 

 

BUSINESS DETAILS

 

Line of Business :

Proposed Manufacturer of Fashion Fabrics and Accessories

 

 

GENERAL INFORMATION

 

Bankers :

State Bank of Hyderabad

Nariman Point Branch, 11-C, Mittal Tower, 210, Nariman Point, Mumbai – 400021, Maharashtra

 

 

Facilities :

--

 

Auditors :

 

Name :

BSR and Associates

Chartered Accountant

Address :

KPMG House, Kamala Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra

Tel. No.:

91-22- 39896000

Fax No.:

91-22-39836000

 

 

Associates/Subsidiaries :

Nil

 

 

CAPITAL STRUCTURE

 

AS ON 30.06.2008

 

Authorised Capital :

No. of Shares

Type

Value

Amount

30000000

Equity Shares

Rs. 10/- Each

Rs.300.000 Millions 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

19999999

Equity Shares

Rs. 10/- Each

Rs.199.999 Millions

 

Note: of the above issued, subscribed and paid- up equity capital, 5000000 (2006: Nil) equity shares of Rs.10/- each are held by Etamint (Belgium), the holding company

During the current year the company vide its board resolution dated 2 January 2007 and 19 November 2007 increased its authorized share capital from Rs.30.000 Millions to Rs.200.000 Millions.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

99.999

0.100

2] Share Application Money

 

65.000

9.900

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

(122.382)

(8.382)

NETWORTH

 

42.617

1.618

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

0.000

20.000

TOTAL BORROWING

 

0.000

20.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

42.617

21.618

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

52.735

0.000

Capital work-in-progress

 

11.966

9.936

 

 

 

 

INVESTMENT

 

3.998

0.046

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

42.119

0.000

 

Sundry Debtors
 

14.672

0.000

 

Cash & Bank Balances
 

1.043

7.581

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

30.644

10.161

Total Current Assets
 

88.478

17.742

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

111.595

6.106

 

Provisions
 

2.965

0.000

Total Current Liabilities
 

114.560

6.106

Net Current Assets
 

(26.082)

11.636

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

42.617

11.618

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2007

31.03.2006

Sales Turnover (including other income)

 

77.317

0.029

Total Income

 

77.317

0.029

 

 

 

 

Profit/(Loss) Before Tax

 

(113.189)

(8.383)

Provision for Taxation

 

(0.811)

--

Profit/(Loss) After Tax

 

(114.000)

(8.383)

 

 

 

 

Expenditures :

 

 

 

 

Depreciation & Amortization

 

5.871

--

 

Other Expenditure

 

184.635

8.412

Total Expenditure

 

190.506

8.412

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2007

31.03.2006

PAT / Total Income

(%)
 

(1.47)

(289.06)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

(1.46)

(289.06)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

(0.72)

(0.30)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

(2.65)

(5.18)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

2.68

16.13

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

0.77

2.90

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8

 

This form is for

Creation of charge

Corporate identity number of the company

U51909MH2006PTC164092

Name of the company

ETAM FUTURE FASHION PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

knowledge House, Shyam Nagar, Opp. Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai – 400060, Maharashtra

Type of charge

Book Debts

Immovable Property

Others

Particular of charge holder

Name:

State Bank of Hyderabad

Address:

Nariman Point Branch, 11-C, Mittal Tower, 210, Nariman Point, Mumbai – 400021, Maharashtra

Email:

narimanpoint@sbhyd.co.in

Nature of description of the instrument creating or modifying the charge

Letter regarding the grant of individual limits within the overall limit

Agreement of hypothecation of goods and assets

Date of instrument Creating the charge

29.03.2008

Amount secured by the charge

Rs.200.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Cash Credit – 1% below SBH PLR. Present rate of interest is 12% p.a. with a minimum of 12%p.a.

Term Loan – 1% below SBH PLR at present fixed rate minimum of 12% p.a. for monthly compounding and payable along with next every 2 years from the date of first document.

 

Terms of Repayment

Quarterly installment of principle of Rs.8.333 millions payable from 30.09.2009 to 30.06.2012

 

Margin

Working capital – 25% on all current assets components

Term loan 43.08%

 

Extent and Operation of the charge

Hypothecation charge over the fixed assets and entire current assets of the company

Short particulars of the property charged

First charge on the entire fixed assets of the company both present and future for term loan

First hypothecation charge on the entire current assets of the company both current and future for working capital

 

Director Report

Working Results

During the year, the company has incurred a net loss of Rs.114.00 millions as compared to loss of Rs.8.38 million during previous year. The director are hopeful of achieving better results in the current year.

 

Operations

The company has started its operation on 24th January, 2007 and has opened 16 stand alone stores and 19 shop at various locations across all over India. Being a start up company. It has invested lot of amount on building assets and manpower strength. Rising rental has been one of the concern for the company and for this reason, the company has been very caution before talking up any new location. Post of financial year, decrees in rental has been observed at various location and company hope to reduce this cost in future. In the first year of operations, ‘Etan’ has captured substantial market share in the premium lingerie segment.

 

Share Capital Details

Allotment

During the current year, the company has allotted 8000000 equity share of Rs.10 each fully paid up to Indus league clothing limited and ETAMINT SA on 18 June, 2007

Further on 25th March, 2008 Companyallotted 3000000 equity share of Rs.10 each fully paid up to PFH Entertainment Limited and ETAMINT SA.

 

Further during the year company has received Rs.65 Millions as application money from PFH Entertainment SA

 

Increase in Authorised Capital

The authorized share capital of the company has increase from Rs.30 millions to Rs.100 millions and from rs.100 million to Rs.200 millions on 16th January, 2007 and 18th June, 2007 respectively.

 

Fixed Assets

  • Leasehold Improvements
  • Office Equipments
  • Computer and Peripherals
  • Furniture and Fitting

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.49.74

UK Pound

1

Rs.74.37

Euro

1

Rs.62.78

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

-

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

NO

TOTAL

 

29

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions