MIRA
INFORM REPORT
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Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
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Name : |
INDIABULLS RETAIL SERVICES LIMITED |
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Formerly Known As : |
PIRAMYD RETAIL LIMITED |
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Registered Office : |
E-29, First Floor, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
18.03.2005 |
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Com. Reg. No.: |
181536 |
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CIN No.: [Company
Identification No.] |
L52190DL2005PLC181536 |
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Legal Form : |
Public limited liability company. Company’s shares are
listed on the Stock Exchange. |
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Line of Business : |
The Company's principal activity is to engage in retail business
of lifestyle, food, home and personal care products. |
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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Indiabulls Group but seems to be passing through
difficult times. The company’s financial position in moderate having good
amount of accumulated losses. Trade relations are fair. Payments are reported
as slow and delayed at times. The company can be considered for business dealings with slight
caution, initially. |
INFORMATION DECLINED BY
|
Name : |
Mr. Sachin Rane |
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Designation : |
Admin Department |
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Contact No.: |
91-9967016463 |
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Date : |
17.11.2008 |
LOCATIONS
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Registered Office : |
E-29, First Floor, |
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Tel. No.: |
91-11-41899900 |
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Fax No.: |
91-11-41899917 |
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E-Mail : |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-22- 3989 5555 |
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Fax No.: |
91-22- 6743 0522 |
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Media Relations : |
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Mobile No. : |
91 9930783411 |
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Tel. No.: |
91-22-39895555 |
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E-Mail : |
gbanga@indiabulls.com [Gagan
Banga] |
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For Investor / Analyst Queries : |
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Tel. No.: |
91-22-3989 5555 |
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Fax No.: |
91-22-2281 4040 |
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E-Mail : |
[Ajit Mittal] |
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Compliance
Officer : |
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Tel. No.: |
91-22-3980 5008 |
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Fax No.: |
91-22-2281 2440 |
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E-Mail : |
vkhandelwal@indiabulls.com [Vikas Khandelwal] |
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Branch Office : |
Plot No- 448-451, Udyog Vihar,
Phase - V, Gurgaon - 122 001, |
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Tel. No.: |
91-124-4308 020. |
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E-Mail : |
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Branch Office : |
Peninsula Spenta Building, 156 Milton House, Mathuradas Mill Compound,
N M Joshi Marg, Lower Parel, Mumbai – 400013, Maharashtra, India |
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Tel. No.: |
91-22-66154817 / 66154651 – 53 |
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Fax No.: |
91-22-66154593 |
DIRECTORS
|
Name : |
Mr. Rajiv Rattan |
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Designation : |
Director |
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Name : |
Mr. Tarun Tyagi |
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Designation : |
Director |
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Name : |
Mr. Ikroop Singh Kehal |
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Designation : |
Whole-time Director |
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Name : |
Mr. Udesh Jha |
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Designation : |
Director |
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Name : |
Ms. Aishwarya Katoch |
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Designation : |
Director |
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Name : |
Mr. Shamsher Singh |
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Designation : |
Director |
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Name : |
Mr. Karan Singh |
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Designation : |
Director |
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Name : |
Mr. Prem Prakash Mirdha |
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Designation : |
Director |
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Name : |
Ms. Savita Singh |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Vikas Khandelwal |
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Designation : |
Company Secretary |
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Name : |
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Designation : |
Mr. Gagan Banga |
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Group Spokesperson |
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Name : |
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Designation : |
Mr. Ajit Mittal |
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President- Corporate Affairs |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2008
|
Shareholding
of promoter and promoter group |
No. of Shares |
Percentage of Holding |
|
Indian |
|
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Bodies corporate |
12783310 |
63.92 |
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Institutions |
|
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Mutual funds |
340629 |
1.70 |
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Foreign Institutional
investors |
433877 |
2.17 |
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Non
Institutions |
|
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Bodies Corporate |
2373791 |
11.87 |
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Individual shareholders
holding nominal share capital up to Rs. 0.100 Million |
2216867 |
11.08 |
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Individual shareholders
holding nominal share capital in excess of Rs. 0.100 Million |
1648076 |
8.24 |
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Any other (specify) |
|
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NRIs |
197968 |
0.99 |
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Clearing Members |
5482 |
0.03 |
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Total |
20000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company's principal activity is to engage in retail business
of lifestyle, food, home and personal care products. |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
A Sardana and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
21000000 |
Equity Shares |
Rs. 10/- each |
Rs. 210.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 [12 Months] |
31.03.2007 [12 Months] |
31.03.2006 [13 Months] |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
200.000 |
200.000 |
200.000 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
[778.400] |
512.500 |
991.800 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
[578.400] |
712.500 |
1191.800 |
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|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
172.100 |
522.700 |
484.800 |
|
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2] Unsecured Loans |
1590.800 |
386.600 |
0.000 |
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TOTAL BORROWING |
1762.900 |
909.300 |
484.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1184.500 |
1621.800 |
1676.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
888.100 |
747.000 |
786.000 |
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Capital work-in-progress |
151.300 |
181.500 |
207.500 |
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INVESTMENT |
0.000 |
0.000 |
16.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
642.700
|
544.600 |
424.300 |
|
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Sundry Debtors |
19.300
|
38.100 |
17.500 |
|
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Cash & Bank Balances |
9.300
|
18.700 |
329.900 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
276.900
|
686.600 |
286.600 |
|
Total
Current Assets |
948.200
|
1288.000 |
1058.300 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
784.300
|
585.900 |
375.100 |
|
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Provisions |
18.800
|
8.800 |
16.800 |
|
Total
Current Liabilities |
803.100
|
594.700 |
391.900 |
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Net Current Assets |
145.100
|
693.300 |
666.400 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.0000 |
0.000 |
|
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TOTAL |
1184.500 |
1621.800 |
1676.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 [12 Months] |
31.03.2007 [12 Months] |
31.03.2006 [13 Months] |
|
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Sales Turnover |
1949.900
|
1560.700
|
992.000
|
|
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Other Income |
56.200
|
80.000
|
71.200
|
|
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Total Income |
2006.100 |
1640.700 |
1063.200 |
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Profit/(Loss) Before Tax |
[1281.400]
|
[480.500]
|
[75.700] |
|
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Provision for Taxation |
7.900
|
[2.500]
|
[0.900]
|
|
|
Profit/(Loss) After Tax |
[1289.300]
|
[478.000]
|
[74.800]
|
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Expenditures : |
|
|
|
|
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Raw Materials |
1697.700
|
1328.800
|
1080.600
|
|
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Power & Fuel Cost |
107.300
|
72.600
|
31.200
|
|
|
Other Manufacturing Expenses |
160.200
|
88.700
|
89.600
|
|
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Employee Cost |
300.600
|
218.400
|
121.900
|
|
|
Selling and Administration
Expenses |
644.600
|
387.600
|
15.600
|
|
|
Miscellaneous Expenses |
261.500
|
23.500
|
24.700
|
|
|
Stock Adjustments |
[98.100]
|
[120.300]
|
[424.300]
|
|
|
Interest & Financial Charges
|
138.700
|
61.900
|
20.400
|
|
|
Depreciation |
75.000
|
60.000
|
19.200
|
|
Total Expenditure |
3287.500 |
2121.200 |
978.900 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
411.900 |
|
Other Income |
|
|
0.700 |
|
Total Income |
|
|
412.600 |
|
Total Expenditure |
|
|
585.000 |
|
Operating Profit |
|
|
[172.400] |
|
Interest |
|
|
48.800 |
|
Gross Profit |
|
|
[221.200] |
|
Depreciation |
|
|
21.400 |
|
Tax |
|
|
0.900 |
|
Reported PAT |
|
|
[243.500] |
KEY RATIOS
|
PARTICULARS |
31.03.2008 [12 Months] |
31.03.2007 [12 Months] |
31.03.2006 [13 Months] |
|
Debt-Equity
Ratio |
19.93 |
0.73 |
0.41 |
|
Long
Term Debt-Equity Ratio |
14.03 |
0.31 |
0.25 |
|
Current
Ratio |
1.02 |
1.31 |
1.84 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.13 |
1.93 |
1.14 |
|
Inventory |
3.28 |
3.22 |
2.16 |
|
Debtors |
67.94 |
56.14 |
52.33 |
|
Interest
Cover Ratio |
[8.24] |
[6.76] |
[0.90] |
|
Operating
Profit Margin(%) |
[54.76] |
[22.98] |
0.09 |
|
Profit
Before Interest And Tax Margin(%) |
[58.60] |
[26.82] |
[1.84] |
|
Cash
Profit Margin(%) |
[62.27] |
[26.78] |
[1.88] |
|
Adjusted
Net Profit Margin(%) |
[66.12] |
[30.63] |
[3.81] |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is a part of Piramal group was incorporated on March
2005.The company executed a business transfer agreement in 2005 and acquired
lifestyle retail business of Piramyd Retail and Merchandising Private Limited
and food retail business of Crossroads Shoppertainment Private Limited
Subject is one of the major retailers in
During November 2005 the company came out with IPO of 9,000,000 Equity Shares
of Rs.10 each for cash with a price band of Rs.120/- to Rs.140/- per Equity
Share to raise fund and mobilize the fund for its 8 New Piramyd Megastores
& to 13 additional TruMart Supermarkets during FY2006 and 24 During FY2007.
AS PER
WEBSITE
Indiabulls Group is one of the top business houses in the
country with business interests in Real Estate, Infrastructure, Financial Services,
Retail, Multiplex and Power sectors. Indiabulls Group companies are listed in
Indian and overseas markets and have a market capitalization of over USD 7
billion. The Networth of the Group exceeds USD 2.5 billion. Indiabulls Group
companies enjoy highest ratings from CRISIL, a subsidiary of Standard and
Poor’s. Indiabulls has been conferred the status of a “Business Superbrand” by
The Brand Council, Superbrands India.
Indiabulls Financial Services is an integrated financial services powerhouse
providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance,
Asset Management and Advisory services. Indiabulls Financial Services Limited
is amongst 68 companies constituting MSCI - Morgan Stanley India Index.
Indiabulls Financial is also part of CLSA’s model portfolio of 30 Best
Companies in
Indiabulls Real Estate Limited is
Indiabulls Securities Limited is
NEWS
Indiabulls plans retail foray
Ranju Sarkar in Mumbai
November 27, 2007 09:29 IST
After consumer finance and real estate, the Indiabulls Group is set to step
into the retail business. Indiabulls Wholesale Services Limited, a subsidiary
of listed firm Indiabulls Real Estate Limited will set up 30 hypermarkets
across as many smaller cities in the country in the next 15 to 18 months with
an outlay of Rs 15000 Millions (Rs 15 billion).
The first of these stores is expected to come up by
March/April 2008 in one of the three cities the company is targeting
simultaneously, confirmed Indiabulls director Gagan Banga.
These large-format stores, spread over 100,000 to 150,000
square feet, will be modelled on the lines of Costco Wholesale stores in the
Costco focuses on selling products at low prices but at very
high volumes. Goods are bulk-packaged and marketed primarily to large families
and businesses - it expects customers to buy 10 kg of Surf against 500 gm.
Indiabulls hypermarkets would be a B2C
(business-to-consumer) format and not business-to-business format like Metro
(though the wholesale word may connote a different meaning). It will bank on a
low operating cost model to provide higher discounts to customers.
"The value proposition to the consumer will be in the
form of discounts," added Banga.
Indiabulls plans to offer discounts of 15 to 18 per cent on
maximum retail price (MRP) against 5 to 10 per cent offered by other organised
retailers today.
Each small city may have just one store. "We want to
connect with as many people as possible. So, instead of having ten stores in
Ahmedabad, we want to just one and pass on the benefits of scale to our
customers," said Banga.
These stores will be located in the heart of the city, and
not on the outskirts or suburbs as most hypermarkets are located in the
The company is targeting Ahmedabad, Jodhpur, Indore, Kanpur,
Patiala and Ludhiana, many of which have seen a spurt in per capita income
(India's per capita income has doubled to $1,000 in the last five years).
"Tier-II cities are better suited for a discount model.
Bulk-purchasing cannot take off in big cities as there's no space to
store," said Banga.
The company has procured land in 21 of these 30 cities,
where construction is on, claimed Banga. Indiabulls Wholesale will be the
anchor tenant in these malls, which will also house a multiplex, and other
smaller shops.
The malls will be owned by the parent, Indiabulls Real
Estate Limited, which is also developing 3.5 million sq feet of commercial
space in Mumbai's mill lands.
Indiabulls' retail foray is being led by CEO Ikroop Singh,
an Indian who was working with the Microsoft and has huge experience in deploying
technology in retail and has done so for several wholesale companies in the
Indiabulls' entry into retail comes after big groups like
Reliance Aditya Birla, and RPG and Future Group have got a headstart and are
busy consolidating.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.46.63 |
|
|
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.66.49 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
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 |
|