MIRA
INFORM REPORT
|
Report Date : |
01.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THE MOBILE STORE LIMITED |
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Registered Office : |
Essar House,P O Box No.7945,11 K K Marg,Mahalaxmi,Mumbai- 400 034, Maharashtra. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.03.2006 |
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Com. Reg. No.: |
160647 |
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CIN No.: [Company
Identification No.] |
U51900MH2006PLC160647 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME06487F |
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PAN No.: [Permanent
Account No.] |
AACFE1386K |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Chain of Mobile Stores. |
RATING &
COMMENTS
|
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 2000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Essar Group a medium speed industrial house
controlled and managed by Ruia family. Their trade relations are fair.Payments are usually correct and as per
commitments. Subject has incurred heavy losses mainly due to initial financial expenditure. The company can be considered normal for business dealings at usual
trade terms and conditions with slight caution. |
LOCATIONS
|
Registered Office : |
Essar House,P O Box No.7945,11 K K Marg,Mahalaxmi,Mumbai- 400 034, Maharashtra,India. |
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Contact Centre: |
60006363 |
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Toll Free: |
1800-425-6363 |
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E-Mail : |
mobicares@themobilestore.in |
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Retail offices-North |
304,
Tower A,Signature Towers, South
City, Gurgaon, |
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Retail offices-East |
Kolkata 4th
Floor, South
Block, 11/1,
Sarat Bose Road, Minto
Park, Kolkata
- 700017 |
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Retail offices-West |
Mumbai 11, K.
K. Marg, Mahalaxmi, |
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Retail offices-South |
Chennai 5th
Floor, 6,
Esplande, Chennai
- 6000 018
Varun
Towers II, Begam
Peth, Hyderabad
– 14
2nd
Floor, Quantum
International Building, 80
Feet Peripheral Road, Koramangala, 2nd
Floor,Mather Square, Opp.
North Railway Station, Cochin
- 682018 |
DIRECTORS
|
Name : |
Mr.Shankar Dey |
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Designation : |
Director |
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Address : |
3A, Elegant Apartment, Sobani Road, Colaba, Mumbai-400005, Maharashtra,
India. |
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Pan No: |
ADAPD5703C |
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Email: |
sdey@essar.com |
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Name : |
Mr.Kailash Daultani |
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Designation : |
Director |
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Address : |
302, Vandana, 253, Shree Punjab Society, Andheri (West),
Mumbai-400093, Maharashtra, India. |
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Date of Birth : |
10.05.1980 |
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Pan No: |
AFUPD3089D |
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Date of Appointment : |
27.07.2006 |
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CIN NO. |
U72200MH2003PTC140799 |
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Name of Company |
Aegis Crm Solutions Private Limited |
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CIN NO. |
U34102MH2006PLC163842 |
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Name of Company |
Asia Motorworks Holdings Limited |
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Name : |
Mr.Rajiv Agarwal |
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Designation : |
Director |
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Address : |
Panhar,Plot No.5,Abdul Gafar Khan Road,Worli Sea
Face,Worli,Mumbai-400030,Maharashtra,India. |
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Date of Birth : |
10.08.1963 |
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DIN No. |
00903635 |
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Email: |
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Date of Appointment : |
22.03.2006 |
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Name : |
Mr.Kailash Daultani |
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Designation : |
Director |
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Address : |
302, Vandana, 253, Shere Punjab Society, Andheri (west),
Mumbai-400093, Maharashtra, India. |
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Date of Birth : |
10.05.1980 |
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Din No. |
00261665 |
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Email: |
KDaultani@essar.com |
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Date of Appointment : |
27.07.2006 |
KEY EXECUTIVES
|
Name : |
Ms.Neelam Vyas |
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Designation : |
Secretary |
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Address : |
79/12, Ratan Jyothi Building,Near Laxmi Narayan
Temple,J.B.Nagar,Andheri (east), Mumbai-400059, Maharashtra,India. |
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Date of Birth: |
24.10.1983 |
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Tel No: |
91-22-28365754 |
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PAN NO: |
AETPV3741C |
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Date of Appointment : |
01.12.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Essar Investments Limited |
|
49940 |
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Mr.S.Shankaranarayanan |
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10 |
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Mr.Madan Mundhra |
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10 |
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Mr.Girish K Sathe |
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10 |
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Mr.B.Sivakumar |
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10 |
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Mr.V Ganeshan |
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10 |
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Mr.Vipul Shah |
|
10 |
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Total |
|
50000 |
AS ON 31.03.2007
|
Equity Share
Breakup |
|
Percentage of
Holding |
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Category |
|
|
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Bodies corporate |
|
99.99 |
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Other top fifty shareholders |
|
0.01 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Chain of Mobile Stores. |
GENERAL
INFORMATION
|
Bankers : |
Punjab National
Bank Foreshore Road
Branch,1st Floor,Raheja Chambers,Nariman Point,Mumbai-400021,
Maharashtra,India. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Nisar and Kumar Chartered Accountants |
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Address : |
10,Khetan Bhavan,4th Floor,J.Tata
Road,Churchgate,Mumbai-400020, Maharashtra,India. |
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Group Companies: |
v Essar Steel
Limited v Essar Oil
Limited v Essar Investment
Limited v Essar Shipping
Limited |
CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- Each |
Rs.10.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- Each |
Rs.10.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2007 |
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SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
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10.000 |
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2] Share Application Money |
|
|
739.500 |
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3] Reserves & Surplus |
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|
0.000 |
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4] (Accumulated Losses) |
|
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(192.127) |
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NETWORTH |
|
|
557.373 |
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LOAN FUNDS |
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|
|
|
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1] Secured Loans |
|
|
0.000 |
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2] Unsecured Loans |
|
|
0.000 |
|
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TOTAL BORROWING |
|
|
0.000 |
|
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DEFERRED TAX LIABILITIES |
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|
0.000 |
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|
|
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TOTAL |
|
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557.373 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
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291.114 |
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Capital work-in-progress |
|
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126.928 |
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INVESTMENT |
|
|
12.618 |
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DEFERREX TAX ASSETS |
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|
97.366 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
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179.890 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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|
37.335 |
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Other Current Assets |
|
|
0.117 |
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Loans & Advances |
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|
14.132 |
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Total
Current Assets |
|
|
231.474 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
|
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300.686 |
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|
Provisions |
|
|
1.541 |
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Total
Current Liabilities |
|
|
302.227 |
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Net Current Assets |
|
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(70.753) |
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|
|
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MISCELLANEOUS EXPENSES |
|
|
0.000 |
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Long Term Deposits |
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|
100.100 |
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|
|
|
|
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TOTAL |
|
|
557.373 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2007 |
|
|
Sales Turnover |
|
|
104.591 |
|
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Other Income |
|
|
1.604 |
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Total Income |
|
|
106.195 |
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|
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Profit/(Loss) Before Tax |
|
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(287.123) |
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Provision for Taxation |
|
|
94.995 |
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Profit/(Loss) After Tax |
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(382.118) |
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Expenditures : |
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Purchases made for re-sale |
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276.322 |
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|
Increase/(Decrease) in Finished Goods |
|
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(179.889) |
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Salaries, Wages, Bonus, etc. |
|
|
98.733 |
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Payment to Auditors |
|
|
0.280 |
|
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Insurance Expenses |
|
|
0.434 |
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Power & Fuel |
|
|
0.986 |
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Depreciation & Amortization |
|
|
10.924 |
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Other Expenditure |
|
|
185.529 |
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Total Expenditure |
|
|
393.319 |
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KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2007 |
|
PAT / Total Income |
(%) |
|
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(359.82) |
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Net Profit Margin (PBT/Sales) |
(%) |
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(274.51) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(0.37) |
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Return on Investment (ROI) (PBT/Networth) |
|
|
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(0.51) |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
|
0.54 |
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Current Ratio (Current Asset/Current Liability) |
|
|
|
0.76 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U51900MH2006PLC160647 |
|
Name of the
company |
THE MOBILE STORE
LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Essar House,P O Box No.7945,11 K K Marg, Mahalaxmi,Mumbai- 400 034, Maharashtra, India. |
|
Type of charge |
Movable Property (not being pledge) |
|
Particular of
charge holder |
Punjab National
Bank Foreshore Road
Branch,1st Floor,Raheja Chambers,Nariman Point,Mumbai-400021, Maharashtra,India. |
|
Nature of
description of the instrument creating or modifying the charge |
Hypothecation of
assets to secure term loan dated: 31.03.2008 Term loan
agreement dated: 31.03.2008 Agreement of
guarantee dated: 31.03.2008 |
|
Date of instrument
Creating the charge |
31.03.2008 |
|
Amount secured by
the charge |
Rs.300.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest BPLR-0.75% plus
term premium presently the aggregate ROI works out to 12.25% per annum Terms of
Repayment By 12 equal
quarterly installments of Rs.25.000 Millions each, the first installment to
be paid at the end of the 11 quarter from 01.04.2008 that is from 01.10.2010 Margin Margin-50% Extent and
operation of the charge Term loan of
Rs.300.000 Millions is secured by hypothecation of movable assets for setting
up of 2500 telecom retail stores and is also secured by corporate guarantee
by Essar Investments Limited. |
|
Short particulars
of the property charged |
All goods and
movables lying or stored in the borrowers premise at any time and from time
to time situated at any place in India or any other place/s which goods and
movables shall without prejudice to the generality of the foregoing include
all the equipments,tools,machines,computers,telecom sets and all other
equipments and instruments of whatever nature whether relating to the project
or not,furnitures,fixtures and all other accessories and movables whatsoever. |
AS PER WEB SITE DETAILS:
SUMMARY
Mr.
Rajiv Agarwal, CEO and Director, The Subject Company, heads India's first
countrywide chain of telecom retail outlets. "The MobileStore" is an
Essar Group venture, set to introduce a pan-Indian network of retail telecom
outlets. The MobileStore offers a world class shopping environment, with state
of the art technology.
The
MobileStore format is a one stop mobile
solution shop that provides, multi brand handsets, accessories,
connections, repairs, VAS etc all under one roof.
The
MobileStore currently has more than 1050 outlets and the vision is to have a
network of 2500 stores by 2010 across 650 cities, thus covering virtually every
major town in every state across India.
The MobileStore outlets are in three formats: Large - 1000-1500 square
feet, Medium- 800-1000 square feet and Corner-150-200 square feet, with smaller
formats located primarily in large malls.
Key
thrust areas for the retail format are: Comprehensive Product Range,
Knowledgeable Store Staff and Interactive Environment, Competitive Prices and
Handset Repairs.
The
MobileStore caters to the Indian consumer's choice of the widest and most
comprehensive range of mobile phones with special offers from all the key
brands available across the globe. The MobileStore offers complete telecom
solutions right from handset purchase to the choice of service operator and
miscellaneous services like monthly bill collections etc., the stores also
offer connections (pre paid and post paid), accessories and VAS including the
latest ring tones, wallpapers and gaming and prompt after sales service,
available not only in the city of purchase but in all The MobileStore outlets
across the country.
The
MobileStore has undertaken an extensive training program to equip all its
employees with in-depth knowledge of the products and brands available at the
store, thereby allowing them to provide the right kind of guidance to the
customer.
The
MobileStore has categorized its mobile device offerings into consumer segments
keeping in mind the profiles and needs of different consumers. The unique
segments available in The MobileStore The MobileStore are: Business - PDA and Smartphones,
Emails, data transfer etc., Lifestyle
- Fashion phones, Look and elegance, Fun
- Multimedia and music, camera, games, wacky ring tones and wallpapers, Value for Money - Special offers,
discounts and budget phones.
All
major handset brands like Nokia, Sony Ericsson, LG, Samsung, Motorola, Fly,
Sagem, HP, iMate, Dopod, HTC and Blackberry are available at the store. The
MobileStore has also tied up with all leading operators including Airtel,
Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom.
All
major handset brands like Nokia, Sony Ericsson, LG, Samsung, Motorola, Fly,
Sagem, HP, iMate, Dopod, HTC and Blackberry are available at the store. The
MobileStore has also tied up with all leading operators including Airtel,
Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom.
Mr Rajiv
Agarwal, CEO - The MobileStore, inducted to the Governing Board of Retailers
Association of India (rai)
Mr Rajiv
Agarwal, CEO - The MobileStore, was inducted to the Governing Board of
Retailers Association of India, during its recently held Board Meeting.
The
Retailers Association of India (rai) is the unified voice of Indian retailers
working with all the stakeholders towards creating the right environment for
the growth of the modern retail industry in India. rai is the body that
encourages, develops, facilitates and supports retailers to become modern and
adopt best practices that will delight customers.
rai's
Governing Board comprises the following people who have led the retail
revolution in their country - Mr Kishore Biyani of Pantaloons, Mr B S Nagesh of
Shoppers' Stop, Mr Noel Tata of Trent Ltd, Mr Vinay Nadkarni of Globus, Mr. T.
Shantakumar of Kirtilal Kalidas Jewellers Private Limited , Mr Sumantra Banerjee of RPG Retail, Mr B A Kodandarama
Setty of Viveks and Mr Gibson G Vedamani, CEO, rai.
Mr Ajit Joshi,
CEO and Managing Director, Infiniti Retail Limited, Mr Vikram Bakshi, Managing
Director, McDonalds India Limited (North and East), Mr T Shantakumar, Managing
Director, Kirtilal Kalidas Jewellers Private Limited and Mr R C Agarwal,
Managing Director, Vishal Retail Limited, were the other members who were also
newly inducted to the Governing Board of Retailers Association of India.
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.46.94 |
|
UK Pound |
1 |
Rs.85.57 |
|
Euro |
1 |
Rs.67.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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 |
|