MIRA
INFORM REPORT
|
Report Date : |
18.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEXT RETAIL INDIA LIMITED |
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Formerly Known As : |
E MART INDIA LIMITED |
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Registered Office : |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.12.2003 |
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Com. Reg. No.: |
143371 |
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CIN No.: [Company
Identification No.] |
U51395MH2003PLC143371 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKE00404F |
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PAN No.: [Permanent
Account No.] |
AABCE3142P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Retailing of Consumers Electronics and Home Appliances. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4008336 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is well established electronic retail chain. It is now owned
by Videocon Group, a large sized consumer electronic producers. Trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The Company is expected to do well under new management. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Rakesh Kogta |
|
Designation : |
Commercial Manager |
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Date : |
17.10.2008 |
LOCATIONS
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Registered Office : |
Auto Cars Compound, Adalat Road, Aurangabad 431005, Maharashtra. |
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E-Mail : |
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Area : |
3500 sq ft |
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Location : |
Owned |
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Corporate Office : |
1st Floor, Shiv Ashish, Behind Lathia Rubber, Andheri Kurla
Road, Sakinaka, Andheri (E), Mumbai 400072, Maharashtra, India. |
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Tel. No.: |
91-22-66897500 |
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Fax No.: |
91-22-28598484 |
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E-Mail : |
Rakesh-kogta@next.co.in |
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Website : |
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Area : |
25000 sq ft |
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Location : |
Owned |
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Branches : |
99-19A, Siva Shan Mugam Street, Tambaram, Chennai 600045. |
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Tel. No.: |
91-44-45076001/ 45076002 |
DIRECTORS
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Name : |
Mr. Pradeepkumar Nandlal Dhoot |
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Designation : |
Director |
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Address : |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra,
India |
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Name : |
Mrs. Chandrakant Sidram Jyoti |
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Designation : |
Director |
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Address : |
Twin Bunglow 12, Pratap Nagar, Aurangabad – 431005, Maharashtra, India |
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Name : |
Mr. K S Raman |
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Designation : |
Director |
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Name : |
Mr. Anirudh Venugopal Dhoot |
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Designation : |
Director |
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Name : |
Mr. VinodKumar Bara |
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Designation : |
Director |
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Name : |
Mr. Sunil Samaria |
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Designation : |
Director |
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Name : |
Mr. NaveenKumar Mandhana |
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Designation : |
Director |
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Address : |
907-908/A, Akruti Nova, Saiwadi, Opp. Teli Galli Andheri (East), Mumbai
– 400069, Maharashtra, India |
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Date of Birth/Age : |
18.09.1956 |
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Date of Appointment : |
20.12.2006 |
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Name : |
Mr. Rajendra Motilal Dungarjal |
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Designation : |
Director |
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Address : |
30 Videocon Twin Bunglow, Pratap Nagar, Aurangabad, Maharashtra, India |
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Name : |
Mr. Nipun Gopaldas Gupta |
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Designation : |
Director |
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Address : |
C-89, Tara Kutir, Town Centre Sidco, Aurangabad, Maharashtra, India |
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Name : |
Mr. Subho Shah |
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Designation : |
Director |
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Address : |
502, Om Apartments, M B Raut Road, Shivaji Park, Mumbai – 400038,
Maharashtra, India |
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Date of Birth/Age : |
22.11.1956 |
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Date of Appointment : |
20.12.2006 |
Equity Share Breakup (Percentage on shares):
(As on 31.03.2007)
|
Category |
|
Percentage |
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Bodies Corporate (not mentioned above) |
|
90.02 |
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Directors or relatives of directors |
|
9.98 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Retailing of Consumers Electronics and Home Appliances. |
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Products : |
· Electronics · Home Appliances |
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Imports : |
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Countries : |
·
China ·
Korea |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash |
GENERAL
INFORMATION
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Customers : |
End Users |
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Bankers : |
·
IDBI Bank, Ballard Estate. ·
ICICI Bank, Bandra Kurla Complex. |
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Facilities : |
TL 1000.000 Millions |
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Auditors : |
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Name : |
Shashank Suvarnapathaki Chartered Accountant |
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Address : |
3801, Barde Lane, Navi Peth, Ahmedabad – 414001, Maharashtra, India |
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Financial Institute : |
IDBI Trusteeship
Services Limited Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai
– 400001, Maharashtra, India |
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Associates/Subsidiaries : |
Sidharth Assets and Services Private Limited U74920MH2006PTC161438 Videocon Appliances Limited PLUG In, Pune. U99999MH1988PTC046445 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
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|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
100200000 |
Equity Shares |
Rs.10/- each |
Rs.1002.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
1002.000 |
2.000 |
0.500 |
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2] Share Application Money |
0.000 |
50.000 |
0.000 |
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3] Reserves & Surplus |
0.084 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
(6.954) |
0.000 |
|
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NETWORTH |
1002.084 |
45.046 |
0.500 |
|
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
1.439 |
0.000 |
0.000 |
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TOTAL |
1003.523 |
45.046 |
0.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
182.426 |
89.979 |
16.173 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
796.447
|
313.906 |
23.017 |
|
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Sundry Debtors |
491.521
|
740.687 |
10.193 |
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Cash & Bank Balances |
81.630
|
6.571 |
65.999 |
|
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Other Current Assets |
41.657
|
42.390 |
0.000 |
|
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Loans & Advances |
369.497
|
47.497 |
8.150 |
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Total
Current Assets |
1780.752
|
1151.051 |
107.359 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
953.060
|
1193.007 |
141.569 |
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Provisions |
6.595
|
2.977 |
0.000 |
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Total
Current Liabilities |
959.655
|
1195.984 |
141.569 |
|
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Net Current Assets |
821.097
|
(44.933) |
(34.210) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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Preliminary Expenses |
0.000 |
0.000 |
0.068 |
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Profit and Loss Account |
0.000 |
0.000 |
18.469 |
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TOTAL |
1003.523 |
45.046 |
0.500 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
|
2860.125 |
1752.577 |
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Other Income |
|
0.872 |
0.000 |
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Total Income |
|
2860.997 |
1752.577 |
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Profit/(Loss) Before Tax |
|
15.028 |
12.943 |
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Provision for Taxation |
|
7.989 |
1.428 |
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Profit/(Loss) After Tax |
|
7.039 |
11.515 |
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Expenditures : |
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Purchases made for re-sale |
|
2452.123 |
1560.997 |
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Salaries, Wages, Bonus, etc. |
|
80.221 |
39.047 |
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Managerial Remuneration |
|
0.000 |
0.000 |
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Payment to Auditors |
|
0.022 |
0.023 |
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Interest |
|
0.039 |
0.000 |
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Insurance Expenses |
|
0.000 |
0.000 |
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Power & Fuel |
|
9.154 |
3.169 |
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Depreciation & Amortization |
|
8.056 |
3.146 |
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Other Expenditure |
|
296.354 |
133.252 |
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Total Expenditure |
|
2845.969 |
1739.634 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.25
|
0.66 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
0.52
|
0.74 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.76
|
1.04 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.29 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.96
|
26.55 |
283.138 |
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Current Ratio (Current Asset/Current Liability) |
|
1.85
|
0.96 |
0.76 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number (CIN) Foreign company registration number |
U51395MH2003PLC143371 |
|
Name of the
Company |
NEXT RETAIL INDIA LIMITED |
|
Address |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra,
India |
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This form is for |
Creation of
Charge |
|
Type of Charge |
Book Debts Movable Property
(Not being pledge) |
|
Particulars of
the charge holder |
IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai
– 400001, Maharashtra, India CIN : L65190MH2004GOI148838 Email : sn.baheti@idbi.co.in |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed of
Hypothecation dated 25.05.2007 secured inter alia, by a first charge of all
the borrower movable including movable plant and machinery, machinery stores,
tools and accessories whether installed or not, book debts, stocks of raw
materials, semi finished goods and finished goods and work in progress and
consumable stores both present and future more specifically mentioned in the
deed of hypothecation herewith. |
|
Date of the
instrument creating or modifying the charge |
25.05.2007 |
|
Amount secured by
the charge |
Rs.500.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: Cash Credit :
BPLR 175bps Payable monthly Terms of
Repayment: Not Applicable Margin: For the Purpose
of Fund Based Limits: Inventories
(Finished Goods, Packaging Materials) – 25% Book Debts (upto
180 days) – 25% Extent and
operation of the Charge: Hypothecation of
Stocks of Packaging Materials, Finished Goods, Stores, Book Debts and all
other Current Assets of the Company, including stock in transit, on Pari
Passu with the other working capital banks. |
|
Short particulars
of the property charged (including location of the property) |
The whole of the movable
properties of the borrower including its plant and machinery, machinery
spares, tools and accessories whether installments or not book debts, stocks
of raw materials, semi finished goods and finished goods, work in progress,
consumable stores, both present and future. |
|
Particular of the
present modification |
NA |
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.48.68 |
|
UK Pound |
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.65.70 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|