MIRA INFORM REPORT

 

 

Report Date :

15.07.2011

 

IDENTIFICATION DETAILS

 

Name :

BRANDHOUSE RETAILS LIMITED

 

 

Registered Office :

B-2, 5th Floor, Marathon Next Gen, Off G.K. Marg, Lower Parel, Mumbai-400013, Maharashtra 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

04.06.2004

 

 

Com. Reg. No.:

11-146760

 

 

Capital Investment / Paid-up Capital :

Rs.536.027 Millions

 

 

CIN No.:

[Company Identification No.]

L52320MH2004PLC146760

 

 

Legal Form :

Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Retail Outlets for Fashion and Lifestyle Brands.

 

 

No. of Employees :

Information denied by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4900000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. 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.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Rajesh

Designation :

Accounts Manager

Date :

14.07.2011

 

 

LOCATIONS

 

Registered Office :

B-2, 5th Floor, Marathon Next Gen, Off G.K. Marg, Lower Parel, Mumbai-400013, Maharashtra, India 

Tel. No.:

91-22-24824500

Fax No.:

91-22-24931685

E-Mail :

customercare@brandhouseretails.com

bhrlinvestor@sknl.co.in

pulak.b@sknl.co.in

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Nitin S. Kasliwal

Designation :

Chairman and Managing Director (appointed as Managing Director with effect from 30 January, 2010)

 

 

Name :

Ms. Jyoti N. Kasliwal

Designation :

Director

 

 

Name :

Dr. A. C. Shah

Designation :

Director

 

 

Name :

Mr. Anish Modi

Designation :

Director (Nominee of India Debt Management Private Limited)

 

 

Name :

Mr. Denys Firth

Designation :

Director (Nominee of India Debt Management Private Limited)

 

 

Name :

Mr. Dara D. Avari

Designation :

Director

 

 

Name :

Mr. Tarun Joshi

Designation :

Director (Resigned as Managing Director and Director with effect from 30 January, 2010)

 

 

KEY EXECUTIVES

 

Name :

Mr. Pulak Banerjee

Designation :

Company Secretary

 

 

Name :

Mr. Rajesh

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2011

 

Names of Shareholders

Total No. of Shares

Total Shareholding as a % of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

606,422

1.13

Bodies Corporate

29,266,229

54.60

Sub Total

29,872,651

55.73

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

29,872,651

55.73

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

880

-

Financial Institutions / Banks

640

-

Sub Total

1,520

-

(2) Non-Institutions

 

 

Bodies Corporate

11,928,013

22.25

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

7,298,475

13.62

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

3,748,712

6.99

Any Others (Specify)

753,396

1.41

Non Resident Indians

753,396

1.41

Sub Total

23,728,596

44.27

Total Public shareholding (B)

23,730,116

44.27

Total (A)+(B)

53,602,767

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Retail Outlets for Fashion and Lifestyle Brands.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by the management.

 

 

Bankers :
  • Bank of India
  • IDBI Bank Limited
  • Union Bank of India
  • Central Bank of India

 

 

Facilities :

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

65,45,000 14% Non-Convertible Debentures of Rs. 100 each

654.500

654.500

Add :Accrued Interest on NCD

78.061

0.000

Working Capital Demand Loans from Banks

1139.464

354.608

Vehicle Loans

(Secured by hypothecation of the vehicles financed)

3.729

6.435

Total

1875.754

1015.543

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Haribhakti and Company

Chartered Accountant

 

 

Name :

Malpani and Associates

Chartered Accountant

 

 

Associates/Subsidiaries :
  • Brandhouse Oviesse Limited  ( w.e.f. 29 July, 2009)
  • S. Kumars Nationwide Limited
  • Belmonte Lifestyle Limited
  • Sansar Exim Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

60000000

Equity Shares

Rs.10/- each

Rs.600.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

53602767

Equity Shares

Rs.10/- each

Rs.536.027 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

536.027

536.028

63.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

712.353

584.157

503.621

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1248.380

1120.185

566.621

LOAN FUNDS

 

 

 

1] Secured Loans

1875.754

1015.543

657.089

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

1875.754

1015.543

657.089

DEFERRED TAX LIABILITIES

0.000

0.000

4.575

AMOUNT TO BE CONVERTED IN TO SHARES

0.000

0.000

473.027

 

 

 

 

TOTAL

3124.134

2135.728

1701.312

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

453.034

516.679

540.156

Capital work-in-progress

2.838

8.971

12.248

 

 

 

 

INVESTMENT

0.500

0.000

0.000

DEFERREX TAX ASSETS

5.211

3.237

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1952.199

1395.804

630.955

 

Sundry Debtors
2683.502

2188.123

775.449

 

Cash & Bank Balances
5.426

30.742

4.249

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
547.991

538.960

477.514

Total Current Assets
5189.118

4153.629

1888.167

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2014.545

2207.239

553.343

 

Other Current Liabilities
35.542

49.163

60.076

 

Provisions
476.480

290.387

125.840

Total Current Liabilities
2526.567

2546.789

739.259

Net Current Assets
2662.551

1606.841

1148.908

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3124.134

2135.728

1701.312

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

6574.607

5523.491

3137.939

 

 

Other Income

23.396

0.576

8.033

 

 

TOTAL                                     (A)

6598.003

5524.067

3145.972

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases and Service Charges

6014.280

5231.696

2929.812

 

 

Payments to and Provisions for employees

153.616

153.175

73.240

 

 

Administrative Expenses

390.037

483.978

295.623

 

 

Selling and Distribution Expenses

8.987

8.271

23.835

 

 

Increase/(Decrease) in Inventories

(556.395)

(764.849)

(488.696)

 

 

TOTAL                                     (B)

6010.525

5112.271

2833.814

 

 

 

 

 

Less

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

587.478

411.796

312.158

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

191.595

87.803

38.791

 

 

 

 

 

 

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

395.883

323.993

273.367

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

85.604

82.757

47.082

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

310.279

241.236

226.285

 

 

 

 

 

Less

TAX                                                                  (H)

148.192

107.386

95.148

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

162.087

133.850

131.137

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

0.000

0.000

2.542

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Debenture Redemption Reserve

162.087

133.850

133.679

 

BALANCE CARRIED TO THE B/S

0.000

0.000

0.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Samples and Sales Promotion

1.078

0.394

 

 

Purchase – Furniture and Fixture

3.680

6.759

NA

 

 

Purchases – Merchandise

8.141

25.285

 

 

TOTAL IMPORTS

12.899

32.438

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.02

3.44

33.59

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

1421.190

2095.610

2163.060

1694.640

Total Expenditure

1286.130

1903.960

1969.950

1618.020

PBIDT (Excl OI)

135.060

191.650

193.110

76.620

Other Income

0.070

0.090

0.040

2.530

Operating Profit

135.140

191.740

193.150

79.140

Interest

57.120

73.470

66.890

85.5800

PBDT

78.020

118.270

126.260

(6.440)

Depreciation

15.320

15.690

15.140

52.650

Profit Before Tax

62.700

102.580

111.120

(59.090)

Tax

24.020

25.110

35.600

(68.630)

Profit After Tax

38.680

77.470

75.510

9.550

Net Profit

38.680

77.470

75.510

9.550

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
2.46

2.42

4.17

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.72

4.37

7.21

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.50

5.17

9.32

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.25

0.22

0.40

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.53

3.18

2.46

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.05

1.63

2.55

 

 

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

 

 

 

For Goods

1974.075

2100.027

495.606

For Expenses

37.164

79.952

36.355

For Capital Goods and Services

3.306

27.260

21.382

Total

2014.545

2207.239

553.343

 

 

YEAR IN RETROSPECT

 

The Net Sales/Income from operations for the financial year was Rs. 6574.607 Millions as against Rs. 5523.491 Millions for the previous financial year registering an increase of 19.03%. The Profit from ordinary activities before tax (after Interest and Depreciation charges) stood at Rs. 310.279 Millions and the Profit after tax recorded at Rs. 162.087 Millions for the financial year as against Rs. 241.236 Millions and Rs. 133.850 Millions respectively for the previous financial year, improving by 28.62% and 21.10% respectively.

 

OPERATING RESULTS AND BUSINESS

 

The company completes its sixth successful year in the field of fashion retailing. Performance of the company has endured on the back of strong foothold in the branded space with its presence across various segments of domestic retail markets. The recent market upsurge and improved customer sentiments have helped increase earnings during the year. The widening store network of the company across key retail points in the country has given continuous revenue growth which has translated into stronger profit performance. As part of the strategy to enhance its earnings, the company has expanded its own store network with focus on improving the key operational matrix which include better working capital rotation, higher per square foot sales, improving store sales and well considered new store expansion. The retail space continues to offer abundant prospects in India for the company to maximize the benefit. The company has an ideal blend of brands that cater to various preferences and price points enabling it to penetrate smaller cities with its budget brands and bigger cities with its premium, super-premium and luxury brands. The company has adopted a strategy of offering brands that are already established and have a high degree of brand recall, thereby maximizing the success rate of a particular brand.

 

JOINT VENTURE WITH OVIESSE, S.P.A. ITALY

 

During the year, the company promoted Brandhouse Oviesse Limited as its wholly owned subsidiary with initial paid-up capital of Rs. 0.500 Million pursuant to the Joint Venture Arrangement entered with Oviesse S.p.A. of Italy to launch the Italian fast fashion brand “Oviesse Industry” under single brand retail trade in India. On 12 May, 2010, 37,18,000 equity shares and 22,60,800 equity shares of Rs. 10/- each of Brandhouse Oviesse Limited representing 62.5% and 37.5% respectively of the paid-up capital of Rs. 0.603 Millions  of Brandhouse Oviesse Limited have been allotted to the  company and to Oviesse S.p.A. in accordance with the Joint Venture Arrangement. The further capital infusion in Brandhouse Oviesse Limited would be made in accordance with the agreed Business Plan forming part of the Joint Venture Arrangement.

 

The Brand “Oviesse Industry” is set for its launch later this year with opening of stores in the major metro cities to provide affordable fast fashion for men, women and kids. As per the Business Plan, Brandhouse Oviesse Limited would set up 190 Oviesse stores across India over next 5 years. The joint venture for the first year will import the merchandise from Italy and thereafter will introduce local sourcing in a phased manner.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC OVERVIEW

 

Despite the global slowdown, the Indian economy expanded by 7.4% during 2009-10, as against 6.7% in 2008-09, supported by the Government's stimulus package. The revival in consumption boosted the industry and the services sector in the economy. The economic backdrop continued to impact performance of companies across sectors including organized retail in the financial Year 2009-10. Consumer sentiment and business confidence registered a marked improvement during the second half of the financial year. The collateral damage to growth from the global financial crisis and the domestic drought was more limited and better contained than was earlier expected. For instance, the industry numbers seemed to have been aided by both monetary and fiscal stimulus measures of the Government.

 

INDIAN RETAIL SECTOR

 

The retail industry is the fastest growing industry in India as it contributes for 10% of the country's GDP and its current growth rate is 8.5%. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearny, Indian retail industry is the most promising emerging market for investment and is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. The growth in the overall retail market is expected to be driven, largely by the explosion in the modern retail market. According to Investment Commission of India data, this segment accounted for US$ 12.10 bn of sales in 2006, 4.6% of the total retail segment. As per study by Business Monitor International Ltd., Modern retail sales will reach US$ 99.09 bn by 2014, 13.1% of the total retail sales in the country. The growth of scope in the Indian retail market is mainly due to the change in the consumer behaviour. For the new generation have preference towards luxury commodities, which have been due to the strong increase in income, changing lifestyle and demographic patterns which are favourable.

 

COMPANY'S BRANDS

 

REID AND TAYLOR

 

Reid and Taylor is Company's brand offering in the premium suiting and garment segment and has been able to capture approximately 22% of the market share for worsted suiting and fabrics to be rated amongst the top two brands for premium clothing.

 

STEPHENS BROTHERS

 

Stephens Brothers (SB) is Company's brand offering in the Super-Premium brand segment, the most recent brand added to the Company's arsenal. SB is an English brand that offers a wide range of business attire that is designed to perfection both for ladies and gentlemen.

 

BELMONTE

 

Belmonte is Company's brand offering in the mid premium segment that offers fabrics as well as garments retailed by the Company through a pan-India network. Belmonte offers fabric, suiting and ready to wear clothing and is a brand which is ideal for those consumers who are both fashion and value conscious.

 

CARMICHAEL HOUSE

 

Carmichael House is the brand that offers premium and mid-premium home textiles of S. Kumars Nationwide Limited. The objective of the brand is to provide home makers an array of choices in the home linen category. It offers a complete range of high quality home textiles including bed linen, towels, duvet covers and upholstery.

 

DUNHILL

 

Dunhill is the offering by the Company in men's luxury brand segment which is synonymous with the 'pursuit of male indulgence', Alfred Dunhill – the founder of the brand has since inception set new benchmarks in engineering and precision in the male wardrobe and accessories. Dunhill is a complete men's luxury brand specializing in clothes, luxury leather goods, writing implements, lighters, timepieces, fragrances and watches.

 

OVIESSE JOINT VENTURE

 

Brandhouse Oviesse Limited (BOL) was incorporated as Company's Joint Venture with Oviesse S.p.A. Italy, under a Joint Venture Agreement for setting up of the brand “Oviesse Industry”, Italy's number one fashion brand under single brand retail. The brand “Oviesse industry” offers quality fashionable apparel for men, women and kids at affordable prices. In terms of the Joint Venture Agreement, the Company holds 62.5% of the equity while the remaining 37.5% is held by Oviesse S.p.A. The Joint Venture is exclusive to the domestic market and has planned to set up 190 stores over the next five years. The store rollout is expected to commence later this year and continue for the next five years setting up stores across metro / tier 1 / tier 2 cities. Oviesse is one of Italy's leading fashion brands. It offers high quality fashionable apparel and accessories at affordable prices. India's middle class youth is growing rapidly and disposable incomes are also on the rise. The Company recognized that even though the propensity to spend has increased, there is no apparel brand that caters to the fashion conscious mid-price segment. Accordingly, bringing an established Italian brand would benefit from Oviesse's brand building, design, development and trend forecasting expertise while Oviesse will be able to operate effectively in the Indian market utilizing the Company's domestic retail, distribution, logistics and marketing expertise. The Joint Venture will, for the first year, import the merchandise from Italy and thereafter will introduce local sourcing / manufacturing in a phased manner in order to minimize costs. However, even with local sourcing / manufacturing, the designing and styling will continue to be totally Italian.

 

OUTLOOK

 

The Company is well positioned to consistently grow and improve earnings. The optimism is driven by a robust store network, strategic expansion of new stores, presence across socio-economic segments and rising consumer appetite. Encouraging consumer sentiment provides the Company with greater confidence on achieving enhanced sales on the back of an overall improvement in the demand scenario. There is strong growth in demand expected in the tier-2 and 3 cities which would provide the Company brands with a competitive market place. The Company's resilient position in all socio-economic segments of the branded apparel space in the domestic market has been a major growth driver for the Company. Also the continued focus of the Company on overall cost rationalization, better working capital rotation and enhanced same store sales have helped the Company deliver better results. The Company is poised to take advantage of the continuing demand growth in the domestic retail segment on the back of a well-diversified set of brands and a planned expansion in store network.

 

CONTINGENT LIABILITIES:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sales Tax – Disputed in Appeal-Mumbai

0.000

0.164

Sales Tax – Disputed in Appeal-Ghaziabad

0.410

0.000

DLF Limited Delhi towards TDS

0.562

0.000

Bank guarantee in favour of The Collector, Gaziabad, U.P. for Stamp duty in the court of Hon’ble Court of District Magistrate/Collector

1.415

1.415

Total

2.387

1.579

 

Note:

 

  • * FDR with Scheduled Banks Rs. 1.545 Millions (including accumulated interest of Rs. 0.130 Millions ) kept as deposits in respect of the above.
  • ** FDR with Schedule Bank Rs. 0.565 Millions kept as deposit in respect of above.

 

 

FIXED ASSETS:

 

  • Goodwill
  • Land
  • Furniture and Fixtures
  • Motor Cars
  • Computer and Peripherals
  • Office Equipment

 

 

 

AUDITED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2011

 

      Rs. in Millions

PARTICULAR

31.03.2011

 

 

Net Sales / Income from operations

7374.495

Expenditure

 

(Increase) / Decrease in stock in trade and work in progress

(183.311)

Purchase of traded goods

6509.829

Employees cost

118.867

Depreciation

98.797

Other expenditure

332.677

Total

6876.859

Profit from operations before other income, interest and exceptional Items

497.636

Other income

2.730

Profit before interest and exceptional Items

500.366

Interest

283.062

Profit (+)/Loss(-) from Oridinary Activities before tax

217.304

Tax expense

16.099

Net Profit (+)/Loss(-) from Ordinary Activities after tax

201.205

Minority Interest

--

Net Profit / Loss after Minority Interest

201.205

Paid up equity share capital (Face value of Rs.10/- per share)

536.028

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

897.409

Earning per share (EPS)

 

 (a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

3.75

(a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

3.75

Public shareholding

 

          Number of shares

23730116

          Percentage of shareholding

44.27

Promoters and Promoters group Shareholding-

 

a) Pledged /Encumbered

 

Number of shares

6300000

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

21.09

Percentage of shares (as a % of total share capital of the company)

11.75

b) Non  Encumbered

 

Number of shares

23572651

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

78.91

Percentage of shares (as a % of total share capital of the company)

43.98

 

Note:

 

  • The above results have been reviewed and recommended by the audit committee and thereafter considered and approved by the board of directors at its meeting held on May 30, 2011.
  • The annual accounts of Brandhouse Oviesse Limited, subsidiary of the company have been consolidated in the consolidated annual audited account of the company.
  • Information on the Investors complaints pursuant to clause 41 of the listing agreement for the financial year ended on March 31, 2011

 

Particular

Opening Balance

Received during the year

Disposed during the year

Closing Balance

No of Complaints

Nil

11

11

Nil

 

  • The company operates in one segment only – Retails
  • Figures have been regrouped/ reclassified wherever necessary.

 

STATEMENT OF ASSETS AND LIABILITIES

 

 

 

 

Rs in Millions

Particulars

AUDITED AS ON

31.03.2011

 

 

SHAREHOLDERS FUNDS

 

Share Capital

536.028

Minority Interest

0.000

Reserves & Surplus

897.409

LOAN FUNDS

1794.959

 

 

TOTAL

3228.396

 

 

FIXED ASSETS

362.831

INVESTMENT

128.070

DEFERRED TAX ASSETS

4.099

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

Inventories

2135.509

Sundry Debtors

2460.037

Cash & Bank Balances

4.258

Other Current Assets

0.000

Loans & Advances

374.186

 

 

Less : CURRENT LIABILITIES & PROVISIONS

 

Other Current Liabilities

2035.652

Provisions

204.942

 

 

Net Current Assets

2733.396

 

 

TOTAL

3228.396

 

 

 

 

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.44.53

UK Pound

1

Rs.71.80

Euro

1

Rs.63.15

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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.