MIRA INFORM REPORT

 

 

Report Date :

26.08.2011

 

IDENTIFICATION DETAILS

 

Name :

RELIANCEDIGITAL RETAIL LIMITED

 

 

Registered Office :

Reliance Corporate Park, Building No. 4, Ground Floor ‘C’ Wing, Thane-Belapur Road, Ghansoli, Navi Mumbai, Mumbai-400701, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

28.04.2007

 

 

Com. Reg. No.:

11-170415

 

 

Capital Investment / Paid-up Capital :

Rs.0.500 million

 

 

CIN No.:

[Company Identification No.]

U70102MH2007PLC170415

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR21871D

 

 

PAN No.:

[Permanent Account No.]

AADCR6320A

 

 

Legal Form :

A closely held public limited liability company.

 

 

Line of Business :

Dealers of Samsung and Other Brands.

 

 

No. of Employees :

Information denied by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Reliance Retail Ventures of Mukesh Ambani Group. It is a company having moderate track. Profitability of the company appears to be under pressure. There appears to be huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Sanjay Gupta

Designation :

Accountant

Contact No.:

91-22-44770000

Date :

25.08.2011

 

 

LOCATIONS

 

Registered Office/ Mall :

Reliance Corporate Park, Building No. 4, Ground Floor ‘C’ Wing, Thane-Belapur Road, Ghansoli, Navi Mumbai, Mumbai-400701, Maharashtra, India

Tel No.:

91-22-44770000

Fax No.:

91-22-29771882

E-Mail :

sridhar.kothandaraman@ril.com

 

 

Corporate Office :

9th Floor, Maker Chamber IV, Nariman Point, Mumbai – 400 023, Maharashtra, India

Tel. No.:

91-22-22786000 / 22785000

Fax No.:

91-22-22786399

E-Mail :

alok.pathak@ril.com

 

 

DIRECTORS

 

As on 05.08.2010

 

Name :

Mr. Ajay Trilokinath Baijal

Designation :

Director

Address :

139, Flat G, Falcon Crest, 4th Main Defence Colny, Indira Nagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

21.11.1957

Date of Appointment :

28.04.2007

Din No.:

0004943

 

 

Name :

Mr. Madhavan Ganesan

Designation :

Director

Address :

C Wing, 2004, 20th Floor, Shreeji Heights, Plot No. 1, Sector 46A, Nerul, Navi Mumbai-400706, Maharashtra, India

Date of Birth/Age :

07.09.1964

Date of Appointment :

06.12.2007

Din No.:

01674529

 

 

Name :

Mr. Raghu Pillai

Designation :

Director

Address :

Flat No. 6, 4th Floor, Shangrila Apartments No. 5, Besant Nagar, Chennai-600090, Tamilnadu, India

Date of Birth/Age :

03.07.1957

Date of Appointment :

31.12.2007

Din No.:

00179987

 

 

Name :

Bijaya Kumar Sahoo

Designation :

Director

Address :

47/A, 4th Floor, Hill Park, A.G. Bell Marg, Malabar Hill, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

08.05.1966

Date of Appointment :

31.12.2007

Din No.:

01931278

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjay Gupta

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Reliance Retail Limited, India

 

49994

Madhavan Ganesan Jointly with Reliance Retail Limited, India

 

1

Chakravarthy Raghunathan Srinath Jointly with Reliance Retail Limited, India

 

1

Kamath Madhav Rajendra Jointly with Reliance Retail Limited, India

 

1

Venkatachalam Subramaniam Jointly with Reliance Retail Limited, India

 

1

Kothandaraman Sridhar Jointly with Reliance Retail Limited, India

 

1

Saraswatula Sudhakar Jointly with Reliance Retail Limited, India

 

1

 

 

 

Total

 

50000

 

 

BUSINESS DETAILS

 

Line of Business :

Dealers of Samsung and Other Brands.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by the management.

 

 

Bankers :

HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai 400013, Maharashtra, India 

 

 

Facilities :

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

Loans and Advances from Banks:

 

 

Rupee Loans*

(Loan are secured by hypothecation of vehicles.)

1.396

3.754

Total

1.396

3.754

 

 

 

UNSECURED LOAN

 

 

Long Term Loans:

 

 

From Holding Company

2042.389

1468.551

Total

2042.389

1468.551

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Mr. Chaturvedi and Shah

Chartered Accountant

 

 

Name :

S.V. Ghatalia and Associates

Chartered Accountant

 

 

Ultimate Holding Company:

Reliance Industries Limited

 

 

Holding Company:

Reliance Retail Limited

 

 

Subsidiary Company:

RESQ Limited

 

 

Fellow Subsidiaries:
  1. Reliance Autozone Limited
  2. Reliance Brand Limited
  3. Reliance Corporate IT Park Limited
  4. Reliance Dairy Foods Limited
  5. Reliance Digital Media Limited
  6. Reliance Food Processing Solutions Limited
  7. Reliance Fresh Limited
  8. Reliance Gems and Jewels Limited
  9. Reliance Haryana SEZ Limited
  10. Reliance Home Store Limited
  11. Reliance Hypermart Limited
  12. Reliance Infosolutions Private Limited
  13. Reliance Jamnagar Infrastructure Limited
  14. Reliance Leisures Limited
  15. Reliance Nutritional Food Processors Private Limited
  16. Reliance People Serve Limited
  17. Reliance Personal Electronics Limited
  18. Reliance Retail Insurance Broking Limited
  19. Reliance Supply Chain Solutions Limited
  20. Reliance Trends Limited
  21. Reliance Wellness Limited
  22. Retail Concepts and Services ( India) Limited
  23. Strategic Manpower Solutions Limited

 

 

CAPITAL STRUCTURE

 

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000

Equity Shares

Rs.10/- each

Rs.0.500 million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

50000

Equity Shares

Rs.10/- each

Rs.0.500 million

 

Note:  All the above 50 000 (Previous Year 50 000) Equity Shares of Rs. 10 each are held by Reliance Retail Limited, the holding company along with its nominees.

 

 

As on 05.08.2010

 

Authorised Capital : Rs.10.500 Millions

 

 

Issued, Subscribed & Paid-up Capital : Rs.10.500 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

0.500

0.500

0.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(215.251)

(154.863)

(28.207)

NETWORTH

(214.751)

(154.363)

(27.707)

LOAN FUNDS

 

 

 

1] Secured Loans

1.396

3.754

7.175

2] Unsecured Loans

2042.389

1468.551

196.885

TOTAL BORROWING

2043.785

1472.305

204.060

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1829.034

1317.942

176.353

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

544.847

398.455

165.948

Capital work-in-progress

500.016

452.515

314.331

 

 

 

 

INVESTMENT

0.598

0.598

0.500

DEFERREX TAX ASSETS

104.563

67.440

13.987

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
826.349

460.291

326.074

 

Sundry Debtors
102.650

44.326

62.177

 

Cash & Bank Balances
13.066

20.269

13.363

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
315.709

264.991

203.704

Total Current Assets
1257.774

789.877

605.318

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
568.078

367.033

 

Other Current Liabilities
0.011

0.000

903.824

 

Provisions
10.675

23.910

19.907

Total Current Liabilities
578.764

390.943

923.731

Net Current Assets
679.010

398.934

(318.413)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1829.034

1317.942

176.353

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

4113.004

3160.770

399.784

 

 

Other Income

1.383

0.942

0.009

 

 

TOTAL                                     (A)

4114.387

3161.712

399.793

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase

3857.241

2973.663

 

 

Operating and Other Expenses

675.183

466.897

440.915

 

 

Variation in Stocks

(367.054)

(132.753)

 

 

 

TOTAL                                     (B)

4165.370

3307.807

440.915

 

 

 

 

 

Less

PROFIT / LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

(50.983)

(146.095)

(41.122)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.363

0.642

0.033

 

 

 

 

 

 

PROFIT / LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(51.346)

(146.737)

(41.155)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

46.165

30.536

0.000

 

 

 

 

 

 

PROFIT / LOSS BEFORE TAX (E-F)                             (G)

(97.511)

(177.273)

(41.155)

 

 

 

 

 

Less

TAX                                                                  (H)

(37.123)

(50.617)

(12.948)

 

 

 

 

 

 

PROFIT / LOSS AFTER TAX (G-H)                    (I)

(60.388)

(126.656)

(28.207)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(154.863)

(28.207)

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(215.251)

(154.863)

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

3.109

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

(1207.76)

(2533.12)

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(1.47)

(4.00)

(7.06)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(2.37)

(5.61)

(10.29)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(5.41)

(14.92)

(5.34)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.45

1.15

1.49

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
(12.21)

(12.07)

(40.70)

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.17

2.02

0.66

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

568.078

367.033

NA

 

 

OPERATIONAL REVIEW:

 

The Company operates ‘reliancedigital’ stores which offer a wide variety of consumer durable and information technology products at competitive prices at world-class shopping environment. The ‘iStore by Reliancedigital’ is an established Apple destination store in India which provides unique consumer experience and wide range of Apple products, accessories and software. RESQ Limited, the wholly-owned subsidiary of the Company through its robust service network provides excellent pre-sale and post-sale services to the products sold by the Company.

 

The Company has incurred a loss of Rs. 60.388 millions for the financial year ended March 31, 2010. With the optimization of resources and further scaling up of retail store operations, the Company is confident of posting better results in the future.

 

 

FIXED ASSETS:

 

·         Leasehold Improvements

·         Plant and Machinery

·         Electrical Installation

·         Equipments

·         Furniture and Fixtures

·         Vehicles

 

 

 

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 records 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.46.13

UK Pound

1

Rs.75.52

Euro

1

Rs.66.53

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--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

 

26

 

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

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

-

NB

                                       New Business

-

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.