MIRA INFORM REPORT

 

 

Report Date :

01.07.2011

 

IDENTIFICATION DETAILS

 

Name :

BRAND MARKETING (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Metro Dome, 4th Floor, Metro Theatre, M.G. Road, Mumbai – 400020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

23.03.2006

 

 

Com. Reg. No.:

11-160686

 

 

Capital Investment / Paid-up Capital :

Rs.207.010 Millions

 

 

CIN No.:

[Company Identification No.]

U51900MH2006PTC160686

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB16159D

 

 

PAN No.:

[Permanent Account No.]

AACCB8257D

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trader and Importer of Branded Clothes.

 

 

No. of Employees :

70 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 4371000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some 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 PARTED BY

 

Name :

Mr. Ganesh Nar

Designation :

Accounts Manager

Contact No.:

91-9833421257

Date :

28.06.2011

 

 

LOCATIONS

 

Registered Office :

Metro Dome, 4th Floor, Metro Theatre, M.G. Road, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-66181000

Mobile No.:

91-9833421257 (Mr. Ganesh)

E-Mail :

Ganesh.nar@bmindia.com

statutory@bmindia.com

Website :

www.bmindia.com

Area :

2000 Sq. ft. (Approximately)

Location :

Rented

 

 

Showrooms :

Located at :

 

  • Delhi
  • Hyderabad
  • Mumbai
  • Chennai

 

 

DIRECTORS

As on 30.09.2010

 

Name :

Mr. Vijay Mohan Murjani

Designation :

Director

Address :

New Usha Kiran, Flat 29C, No. 15, Carmichael Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

18.10.1970

Date of Appointment :

23.03.2006

 

 

Name :

Mr. Vipul Amritlal Gala

Designation :

Director

Address :

Flat No. 206, G – Wing, Marigold, Valley of Flowers, Kandivali (East), Mumbai – 400101, Maharashtra, India

Date of Birth/Age :

19.03.1975

Date of Appointment :

10.10.2008

 

 

Name :

Mr. Rishi Omprakash Navani

Designation :

Director

Address :

7, Om Ratan, 70, Pochkhanawala Road, Worli – 400025, Maharashtra, India

Date of Birth/Age :

17.04.1973

Date of Appointment :

31.07.2007

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

 

Names of Shareholders

No. of Preference Shares

No. of Equity Shares

Vijay Mohan Murjani

--

5798278

Retail India Limited

--

6622354

Matrix Partners India Investment Holding LLC

7290448

989974

Total

7290448

13410606

 

As on 30.09.2010

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

56.76

Directors or relatives of Directors

43.24

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader and Importer of Branded Clothes.

 

 

Brand Names :
  • Calvin Klein
  • French Connection

 

 

Imports :

 

Products :

Clothes

Countries :

Hong Kong

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Credit (60 days)

 

 

GENERAL INFORMATION

 

Customers :

End users

 

 

No. of Employees :

70 (Approximately)

 

 

Bankers :
  • IDBI Bank, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India
  • HDFC Bank, Fort Branch

 

 

Facilities :

Secured Loans

31.03.2010

(Rs. in Millions)

31.03.2009

(Rs. in Millions)

From Banks :

Finance Lease Liabilities

(Secured by hypothecation of Vehicle Financed)

2.154

0.177

Term Loan

(Secured by the first charge on fixed assets and corporate guarantees of 4 enterprises under the same management)

125.000

125.000

Term Loan

(Secured by pledge of entire shareholding of promoter group in the company, corporate guarantees of 2 Enterprises under the same management and personal guarantee of a Director of the company)

176.550

0.000

Working Capital Facility

(Secured by pari passu charge on the entire book debts and inventories of the company)

0.000

21.141

Total

303.704

146.318

 

 

 

Unsecured Loans

31.03.2010

(Rs. in Millions)

31.03.2009

(Rs. in Millions)

From a Director

4.000

0.000

Total

4.000

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chandabhoy and Jassobhoy

Chartered Accountant

Address :

208 – A, Phoenix House, 2nd Floor, 462, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

 

 

Group Concerns :

Murjani Group

 

 

Associates/Subsidiaries :

Luxury Brands Retail Private Limited

CIN No. : U52190MH2005PTC157856

 

MC Retail Private Limited

CIN No. : U51311MH2006PTC162430

 

MB Retailing Private Limited

CIN No. : U51494MH2006PTC162430

 

MJ Retail Private Limited

CIN No. : U51494MH2006PTC162688

 

MK Retail Private Limited

CIN No. : U51494MH2006PTC162686

 

ML Retail Private Limited

CIN No. : U52599MH2007PTC167177

 

MT Retail Private Limited

CIN No. : U51494MH2006PTC162846

 

MV Retail Private Limited

CIN No. : U70102MH2007PTC170410

 

Murjani Retail Private Limited

CIN No. : U51909MH2005PTC158048

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

78200000

Equity Shares

Rs.10/- each

Rs.782.000 Millions

10000000

Preference Shares

Rs.10/- each

Rs.100.000 Millions

 

Total

 

Rs.682.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

13410606

Equity Shares

Rs.10/-each

Rs.134.106 Millions

7290448

Preference Shares

Rs.10/- each

Rs.72.904 Millions

 

Total

 

Rs.207.010 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.209

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

207.010

841.910

676.607

2] Share Application Money

0.000

17.843

107.775

3] Reserves & Surplus

1329.265

664.004

436.113

4] (Accumulated Losses)

(443.543)

(359.056)

(262.716)

NETWORTH

1092.732

1164.701

957.779

LOAN FUNDS

 

 

 

1] Secured Loans

303.704

146.318

12.082

2] Unsecured Loans

4.000

0.000

69.757

TOTAL BORROWING

307.704

146.318

81.839

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1400.436

1311.019

1039.618

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

137.554

136.775

33.957

Capital work-in-progress

0.110

0.000

81.734

 

 

 

 

INVESTMENT

55.702

58.000

58.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

11.844

 

Sundry Debtors
26.468

54.523

55.149

 

Cash & Bank Balances
52.348

59.376

6.993

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
1154.789

1039.154

835.979

Total Current Assets
1233.605

1153.053

909.965

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
8.178

18.500

31.137

 

Other Current Liabilities
17.519

16.922

10.552

 

Provisions
0.838

1.387

2.349

Total Current Liabilities
26.535

36.809

44.038

Net Current Assets
1207.070

1116.244

865.927

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1400.436

1311.019

1039.618

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

 

SALES

 

 

 

Income

 

 

 

 

 

Other Income

 

 

 

 

 

TOTAL                                     (A)

 

16.292

44.823

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

 

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                     (B)

 

71.589

125.998

 

 

 

 

 

 

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

 

(55.297)

(81.175)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (D)

 

28.397

14.444

 

 

 

 

 

 

PROFIT BEFORE TAX (C-D)                              (E)

 

(83.694)

(95.619)

 

 

 

 

 

Less

TAX                                                                  (F)

 

0.000

0.660

 

 

 

 

 

 

PROFIT AFTER TAX (E-F)                                 (G)

 

(83.694)

(96.279)

 

 

 

 

 

Less

Prior Period Items

 

0.793

0.061

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

(359.056)

(262.716)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

(443.543)

(359.056)

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

(4.04)

--

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover (Approximately)

 

 

12.000

 

 

 

 

 

The above information has been parted by Mr. Ganesh Nar

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
 (513.71)

(214.79)

--

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(6.10)

(7.41)

--

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.08)

(0.08)

--

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.30

0.16

0.13

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
46.49

31.32

20.66

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors Details

(Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

8.178

18.500

31.137

Total

8.178

18.500

31.137

 

 

Form 8 :

 

Corporate identity number of the company

U51900MH2006PTC160686

Name of the company

BRAND MARKETING (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

Metro Dome, 4th Floor, Metro Theatre, M.G. Road, Mumbai – 400020, Maharashtra, India

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

10168223

Type of charge

Book debts

Movable property

Others

Particular of charge holder

IDBI Bank, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Nature of instrument creating charge

Supplemental deed of Hypothecation

Date of instrument Creating the charge

28.06.2010

Amount secured by the charge

Rs.275.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest :

Interest is linked to the BPLR(currently at 12.75%), which may be revised upwards / downwards by the bank from

time to time.

 

Terms of repayment :

As agreed by and with the bank from time to time

 

Margin :

1. Cash Credit - 25% on Stock and 25% on Book Debts upto 90 days.

2. LC/Buyers Credit - 10% by way of FD.

3. LER – NIL

 

Extent and operation of the charge :

IDBI Bank Limited will hold exclusive charge on Fixed Assets(both present and future). The charge on the entire Current Assets (Inventory, Book debts and other Current Assets) of the Company (both Present and future) will be a Pari Passu Charge amongst IDBI Bank Limited and ABN Amro Bank (now Royal Bank of Scotland).

Short particulars of the property or asset(s) charged (including complete address and location of the property)
  1. IDBI Bank Limited will hold exclusive charge on Fixed Assets (both present and future).
  2. The charge on the entire Current Assets(Inventory, Book debts and other Current Assets) of the Company(both Present and future) will be a Pari Passu Charge among IDBI Bank Limited and ABN Amro Bank (now RBS)

Particulars of the present modification

Cancellation of Rupee Term Loan of Rs. 125.000 Millions (and thereby reducing the same from Rs. 250.000 Millions to Rs. 125.000 Millions) and enhancement of cash credit facility from Rs. 100.000 Millions to Rs. 150.000 Millions

 

 

Change of Address :

 

Registered office of the company has been shifted from 36B, Tamrind House, Tamrind Lane, Fort, Mumbai – 400001, Maharashtra, India to the present address w.e.f. 07.02.2008

 

Fixed Assets :

 

  • Air Conditioner
  • Computers and Accessories
  • Furniture and Fixtures
  • Leasehold Improvements
  • Office Equipments
  • Motor Car
  • Software

 

 

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.44.72

UK Pound

1

Rs.71.95

Euro

1

Rs.64.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

1

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--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

 

               30

 

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.