MIRA
INFORM REPORT
|
Report Date : |
07.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
REEBOK INDIA COMPANY |
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Registered
Office : |
530/1, 3 and 4, Village Bijwasan, New Delhi-110061 |
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Country : |
India |
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Financials (as
on) : |
31.12.2010 |
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Date of
Incorporation : |
01.03.1995 |
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Com. Reg. No.: |
55-065954 |
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Capital Investment
/ Paid-up Capital : |
Rs.228.713
Millions |
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|
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CIN No.: [Company Identification
No.] |
U74899DL1995ULT065954 |
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|
Legal Form : |
Unlimited Liability Company |
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Line of Business
: |
Trading of Footwear, Apparel, Accessories, Sports Equipments, etc. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. The
company has incurred some losses in the year 2009-10. However, net worth of
the company appears to be satisfactory. Trade relations are reported as fair.
Business is active. Payments are reported to be usually correct and as per
commitments. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office / Warehouse : |
530/1, 3 and 4, Village Bijwasan, New Delhi-110061, India |
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Tel. No.: |
91-11-28062593/94 |
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Fax No.: |
91-11-28061908 |
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E-Mail : |
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Website: |
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Branch Office: |
7th Floor, Unitech Commercial Tower, II Block B, Greenwood
City, Sector 45, Gurgaon-122001, Haryana, India |
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Tel No.: |
91-124-4124100 |
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Fax No.: |
91-124-4124101 |
DIRECTORS
As on 30.06.2011
|
Name : |
Mr. Prem Subhinder Singh |
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Designation : |
Managing Director |
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Address : |
E-13, Second Floor, Greater Kailash Enclave I, New Delhi-110048, India
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Date of Birth/Age : |
19.08.1968 |
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Date of Appointment : |
01.01.2003 |
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Din No.: |
00148958 |
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Other Directorship:
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Name : |
Jayson Thomas |
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Designation : |
Additional Director |
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Address : |
Building 59-C, Flat F13 W, Sub Meter 500, Jabal Ali, Dubai 32512 |
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Date of Birth/Age : |
25.09.1974 |
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Date of Appointment : |
24.03.2011 |
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Din No.: |
03488540 |
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Other Directorship:
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Name : |
Mr. Sachin Mohammed Padath |
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Designation : |
Additional Director |
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Address : |
Tower 05, Flat 2205, (E and W Sub Meter), 345 / Burj, Dubai
Development, Dubai 32512 |
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Date of Birth/Age : |
16.07.1977 |
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Date of Appointment : |
23.03.2011 |
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Din No.: |
03487883 |
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Other Directorship:
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Name : |
Claus Dieter Heckerott |
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Designation : |
Additional Director |
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Address : |
Gluckstr, 21, Herzogenaurach 91074 |
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Date of Birth/Age : |
19.09.1962 |
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Date of Appointment : |
23.03.2011 |
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Din No.: |
03483385 |
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Other Directorship:
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KEY EXECUTIVES
|
Name : |
Mr. Vineet Sawhney |
|
Designation : |
Secretary |
|
Address : |
134, Kalyau Vihar, Polo Road, Near Model Town, New Delhi-110009, India
|
|
Date of Birth/Age : |
14.04.1967 |
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Date of Appointment : |
01.09.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
|
No. of Shares |
|
Reebok Mauritius Company Limited, Mauritius |
|
2130377 |
|
Focus Energy Limited, India |
|
156750 |
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Adidas Technical Services Private Limited, India |
|
2 |
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|
|
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Total |
|
2287129 |
As on 30.06.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
93.15 |
|
Bodies
corporate |
|
6.85 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trading of Footwear, Apparel, Accessories, Sports Equipments, etc. |
GENERAL INFORMATION
|
Bankers : |
Standard Chartered Bank, Narain Manzil, 23, Barakhamba Road, New
Delhi-110001, India |
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Facilities : |
NOTE: * Guaranteed by
Adidas AG through a corporate guarantee. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
N. Narasimhan and Company Chartered Accountants |
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Address : |
211, Hans Bhawan, 1 Bahudur Shah, Zafar Marg, New Delhi-110002, India |
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Holding Company: |
Reebok Mauritius (Company) Limited |
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Ultimate Holding Company: |
·
Reebok International
Limited, USA [till 30 January 2006] ·
Adidas AG [with effect
from 31 January 2006] |
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|
|
|
Fellow Subsidiaries: |
·
Rebook International
Limited, USA [w.e.f. 31 January 2006] ·
RIL, UK ·
Reebok, Japan ·
The Rockport Company,
USA ·
Adidas Sourcing
Limited, Hong Kong ·
Adidas International
Trading BV Limited, Netherlands ·
Adidas India Marketing
Private Limited ·
Adidas Technical
Services, India ·
Adidas Sports Licensed
Division, USA ·
Adidas Services
Limited, Hong Kong |
CAPITAL STRUCTURE
As on 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2300000 |
Equity Shares |
Rs.100/- each |
Rs.230.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2287129 |
Equity Shares |
Rs.100/- each |
Rs.228.713
Millions |
Note: Of the above 2130377 (previous year 2130377)
equity shares are held by Reebok Mauritius Company Limited, the holding company.
The ultimate holding entity based on the shareholding pattern is Adidas AG
(with effect from 13 January, 2006). Prior to 31 January 2006, the ultimate
holding company was Reebok International Limited, USA.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
228.713 |
228.713 |
228.713 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
520.643 |
921.820 |
794.287 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
749.356 |
1150.533 |
1023.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
2128.346 |
1152.535 |
2575.094 |
|
|
TOTAL BORROWING |
2128.346 |
1152.535 |
2575.094 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2877.702 |
2303.068 |
3598.094 |
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|
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|
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|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
49.508 |
87.562 |
73.634 |
|
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Capital work-in-progress |
39.688 |
0.000 |
4.542 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
274.928 |
78.271 |
64.257 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
749.629
|
409.641 |
521.121 |
|
|
Sundry Debtors |
6992.604
|
6359.094 |
2502.963 |
|
|
Cash & Bank Balances |
616.148
|
321.152 |
979.146 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
2207.342
|
2379.943 |
2326.941 |
|
Total
Current Assets |
10565.723
|
9469.830 |
6330.171 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5949.785
|
5342.581 |
1788.897 |
|
|
Other Current Liabilities |
1972.090
|
1898.077 |
1033.686 |
|
|
Provisions |
130.270
|
91.937 |
51.927 |
|
Total
Current Liabilities |
8052.145
|
7332.595 |
2874.510 |
|
|
Net Current Assets |
2513.578
|
2137.235 |
3455.661 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2877.702 |
2303.068 |
3598.094 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7834.230 |
7721.170 |
NA |
|
|
|
Other Income |
26.710 |
37.420 |
NA |
|
|
|
TOTAL (A) |
7860.940 |
7758.590 |
NA |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
7867.980 |
7123.720 |
NA |
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
7867.980 |
7123.720 |
NA |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(7.040) |
634.870 |
596.490 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
546.900 |
390.260 |
296.560 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(553.940) |
244.610 |
299.930 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
43.890 |
42.470 |
24.930 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(597.830) |
202.140 |
275.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(196.650) |
74.610 |
101.740 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(401.180) |
127.530 |
173.260 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
921.820 |
794.290 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
520.640 |
921.820 |
0.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
39.892 |
26.700 |
34.673 |
|
|
TOTAL EARNINGS |
39.892 |
26.700 |
34.673 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
247.536 |
336.043 |
349.185 |
|
|
TOTAL IMPORTS |
247.536 |
336.043 |
349.185 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(175.41) |
55.76 |
75.76 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
PAT / Total Income |
(%) |
(5.10)
|
1.64 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.63)
|
2.62 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.63)
|
2.12 |
4.29 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.80)
|
0.18 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
13.59
|
7.37 |
5.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.29 |
2.20 |
LOCAL AGENCY FURTHER INFORMATION
NATURE OF
OPERATIONS:
Subject is a private company with unlimited liability under the
provision of the companies act, 1956. The principal activities of the company
are trading of footwear, apparel, accessories, sports equipment etc.
OVERVIEW:
The overall growth of Gross Domestic Product
(GDP) was 8.6 percent in 2010-11 according to the advance estimate (AE) of
Central Statistics Office (CSO) as on March 18, 2011, India’s foreign exchange
reserves were US $ 303.51 billion, according to the Reserve Bank of India’s
(RBI) Weekly statistical Supplement.
In 2010, the
inflation rate went into double digits again for the first time after the
recession. The RBI raised various interbank interest rates no fewer than eight
times to curb the growth of money supply. But inflation stayed stubbornly at an
average of 9 percent or more throughout the year. Due to this, the borrowing
costs for the company substantially increased during the year.
In addition, the 2011 finance budget introduced excise duty on apparels
@ 4.63% of the MRP, which resulted in increased apparel purchase cost.
The year also witnessed higher commodity prices with over 100% increase
in cotton prices and 50% increase in polyester prices. The other input costs
such as petrol and diesel prices adversely impacted the landed costs of the
products.
OPERATIONAL
REVIEW:
Inflation remained a cause of concern and led to tightening of money
supply. The landed cost of footwear and apparel was under stress due to
increase in rubber, cotton, polyester, oil prices and higher minimum wages.
The RBI has tightened the monetary policy in order to combat the high
inflation prevailing in the economy by increasing bank rates several times
during the year. As a result, the cost of borrowing also went up for the
company from Rs.390.200 millions. This has significantly impacted the
profitability of the company.
During the year the company has initiated the closure of certain
unprofitable franchisee run stores. As a result, the company had to accept
sales return from such franchisee stores at the time of closure in accordance
with the prevalent market norms. This also impacted the financial results of
the company to an extent.
The company sold 3529084 pairs of footwear compared to 3106940 pairs in 2009.
The apparel and accessories sale volumes were 11061278 pcs as against 8314602
pcs sold in 2009.
In view of the general slowdown in the sports wear industry as well as
franchisee retail, the company sees limited opportunities for growth beyond the
current presence of 300 plus cities.
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate identity number of the company |
U74899DL1995PLC065954 |
|
Name of the company |
REEBOK INDIA COMPANY |
|
Address of the registered office or of the
principal place of business in |
530/1, 3 and 4, Village Bijwasan, New Delhi-110061, India |
|
This form is for |
Modification of charge |
|
Type of charge |
Hypothecation |
|
Particular of charge holder |
Standard Chartered Bank, Narain Manzil, 23, Barakhamba Road, New
Delhi-110001, India |
|
Email |
|
|
Amount secured by the charge |
Rs.32.000 Millions |
|
Description of the property charged
indicating whether it is a charged on |
Immovable properties Stock in trade Book debts |
|
Particulars of the property charged |
All stock in trade both present and future
consisting of raw material, finished goods, goods in process of manufacturing
and other merchandise whatsoever stored or to be stored at borrower's
premises of godowns and all present and future book debts, outstanding
moneys, receivables, claims and bills etc. shall be hypothecated to the bank
by way of first charge on a pari passu basis. |
|
Charge identification number of the charge
to be modified |
80000089 |
|
Brief description of the instrument
modifying the charge under section 135 |
Supplemental hypothecation agreement of
stocks and book debts. |
|
Date of instrument modifying the charge |
12.06.2006 |
|
Particulars of the present modification |
First hypothecation charge over stocks and
book debts on a pari passu basis already held for Rs.565.000 Millions stands
enhanced to Rs. 915.000 Millions. All other terms and conditions remain
unchanged. |
CONTINGENT
LIABILITIES [NOT PROVIDED FOR IN RESPECT OF]:
|
Particulars |
31.12.2010 (Rs. in millions) |
31.12.2009 (Rs. in millions) |
|
Guarantee on
channel financing |
187.500 |
187.500 |
|
Disputed demand
of income tax of AY 2004-05 |
4.420 |
4.420 |
|
Disputed demand
of income tax of AY 2006-07 |
21.751 |
21.751 |
|
Disputed demand
of income tax of AY 2007-08 |
114.872 |
0.000 |
|
Disputed demand of
income tax of AY 2006-07 [fringe benefit tax] |
0.666 |
0.000 |
|
Disputed demand
of income tax of AY 2007-08 [fringe benefit tax] |
3.343 |
5.806 |
|
Disputed demand
of income tax of AY 2008-09 [fringe benefit tax] |
1.675 |
0.000 |
|
Dispute demand of
service tax |
87.787 |
87.787 |
|
Service tax
arrears on rent |
42.255 |
50.759 |
|
Total |
464.269 |
358.023 |
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 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.51.39 |
|
|
1 |
Rs.80.20 |
|
Euro |
1 |
Rs.68.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.