MIRA
INFORM REPORT
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Report Date : |
18.07.2011 |
IDENTIFICATION DETAILS
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Name : |
ARVIND RETAIL LIMITED |
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Formerly Known
As : |
AAKAR FOUNDATIONWEAR LIMITED |
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Registered
Office : |
Arvind Mills Premises, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
14.03.2007 |
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Com. Reg. No.: |
04-050217 |
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Capital Investment
/ Paid-up Capital : |
Rs. 200.500 Millions |
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CIN No.: [Company Identification
No.] |
U18101GJ2007PLC050217 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AHMA07047F |
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PAN No.: [Permanent Account No.] |
AAGCA2637Q |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in the business of retailing apparels |
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No. of Employees
: |
Not divulged by the management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (42) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2000000 |
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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 a company having satisfactory track. The company has made sizable
turnover in its first year of operation. 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 normal for 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
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Name : |
Mr. Resham Jain |
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Designation : |
Finance Manager |
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Contact No.: |
91-79-30138053 |
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Date : |
14.07.2011 |
LOCATIONS
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Registered Office : |
Arvind Mills Premises, |
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Tel. No.: |
91-79-22208000 |
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E-Mail : |
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Website : |
DIRECTORS
As On 31.03.2010
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Name : |
Mr. Sanjay S. Lalbhai |
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Designation : |
Director |
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Name : |
Mr. Jayesh K Shah |
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Designation : |
Director |
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Name : |
Mr. Munesh Khanna |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of retailing apparels |
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GENERAL INFORMATION
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No. of Employees : |
Not divulged by the management |
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Bankers : |
Not available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Sorab S. Engineer and Company Chartered Accountants |
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Address : |
909, ATMA House, Opposite Reserve Bank of India, Ashram Road,
Ahmedabad – 380009, Gujarat, India |
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Tel. No.: |
91-79-26584304 |
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Fax No.: |
91-79-26589710 |
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E-Mail : |
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Website : |
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Holding Company : |
Arvind Limited |
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Fellow Subsidiaries : |
Arvind Lifestyle Brands Limited |
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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20050000 |
Equity Shares |
Rs. 10/-
each |
Rs. 200.500
Millions |
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Note:
a) Above shares are held by Arvind Limited, the holding company
b) Of the above shares, 20,000,000 Equity Shares of Rs. 101- each are allotted as fully paid up pursuant to the Scheme of Arrangement to Arvind Limited, the holding company without payment being received in cash
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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200.500 |
0.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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320.001 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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520.501 |
0.500 |
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LOAN FUNDS |
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1] Secured Loans |
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353.068 |
0.000 |
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2] Unsecured Loans |
|
212.747 |
0.000 |
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TOTAL BORROWING |
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565.815 |
0.000 |
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DEFERRED TAX LIABILITIES |
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5.564 |
0.000 |
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TOTAL |
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1091.880 |
0.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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877.508 |
0.000 |
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Capital work-in-progress |
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8.875 |
0.046 |
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INVESTMENT |
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0.000 |
0.503 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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955.050 |
0.000 |
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Sundry Debtors |
|
11.921 |
0.000 |
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Cash & Bank Balances |
|
19.330 |
0.014 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
221.371 |
0.000 |
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Total
Current Assets |
|
1207.672 |
0.014 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
|
822.284 |
1.189 |
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Other Current Liabilities |
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173.613 |
0.000 |
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Provisions |
|
6.278 |
0.000 |
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Total
Current Liabilities |
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1002.175 |
1.189 |
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Net Current Assets |
|
205.497 |
(1.175) |
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MISCELLANEOUS EXPENSES |
|
0.000 |
1.126 |
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TOTAL |
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1091.880 |
0.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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|
31.03.2010 |
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SALES |
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Income |
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2813.414 |
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Other Income |
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21.484 |
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TOTAL (A) |
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2834.898 |
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Less |
EXPENSES |
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Cost of goods sold |
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1744.753 |
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Employee cost |
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206.931 |
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Operating and administrative expenses |
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757.816 |
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TOTAL (B) |
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2709.500 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
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125.398 |
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Less |
FINANCIAL
EXPENSES (D) |
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21.867 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
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103.531 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
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72.731 |
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PROFIT BEFORE
TAX (E-F) (G) |
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30.800 |
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Less |
TAX (I) |
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10.799 |
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PROFIT AFTER TAX
(G-I) (J) |
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20.001 |
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BALANCE CARRIED
TO THE B/S |
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20.001 |
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Earnings Per
Share (Rs.) |
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- Basic |
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1.00 |
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- Diluted |
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|
1.00 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2010 |
31.03.2009 |
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PAT / Total Income |
(%) |
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0.71 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.09 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.48 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.06 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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3.01 |
2.38 |
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Current Ratio (Current Asset/Current Liability) |
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|
1.21 |
0.01 |
LOCAL AGENCY FURTHER INFORMATION
COMPANY
BACKGROUND:
Subject is engaged
in the business of retailing Apparels. ARL is the pioneer of Apparel Value
retailing business in
THE DETAILS OF
SUNDRY CREDITORS:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
|
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Other than micro enterprises and small enterprises |
818.135 |
1.189 |
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Security deposits |
4.149 |
0.000 |
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Total |
822.284 |
1.189 |
OPERATIONS:
The company has posted a sales turnover of Rs. 2813.414 millions during the
year. The operating profit before interest and depreciation stands at Rs.
125.398 millions.
CONTINGENT
LIABILITIES:
(a) Bills discounted Rs. 103.256 millions (Rs. Nil).
(b) Claims against the Company not acknowledged as Debt
Rs.200.000 millions (Rs. Nil)
FIXED ASSETS
- Brand value
- Computer software
- Data processing equipments
- Electrical equipments
- Furniture and fixtures
- Leasehold improvement
- Office equipments
- Plant and machineries
- Vehicles
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. 44.52 |
|
|
1 |
Rs. 71.90 |
|
Euro |
1 |
Rs. 62.97 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
42 |
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.