MIRA
INFORM REPORT
|
Report Date : |
21.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
KOUTONS RETAIL INDIA LIMITED |
|
|
|
|
Registered
Office : |
T-60/1, D. C. M. School Lane, New Rohtak Road, Karol Bagh, New Delhi -
110005, Delhi |
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|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2010 |
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|
|
|
Date of
Incorporation : |
25.11.1994 |
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|
|
|
Com. Reg. No.: |
55-62984 |
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|
|
Capital
Investment / Paid-up Capital : |
Rs.305.514
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17299DL1994PLC062984 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELC06479E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCC3495P |
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|
|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Retailer of Integrated Apparels |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 20100000 |
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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 well established company having satisfactory track. There
appears some losses being incurred by the company in the current year i.e.
2010-2011. However, Trade relations are reported as fair. Business is active.
Payments are reported to be regular 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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
T-60/1, D. C. M. School Lane, New Rohtak Road, Karol Bagh, New Delhi -
110005, Delhi, India |
|
Tel. No.: |
91-11-65451320 |
|
Fax No.: |
91-11-23626149 |
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E-Mail : |
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Website : |
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Head / Corporate Office : |
274-275, Phase VI, Udyog Vihar, Sector-37, Gurgaon-122 001, |
|
Tel. No.: |
91-124-4139300 |
|
Fax No.: |
91-124-4139399 |
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|
|
|
Manufacturing Unit 1: |
126-127, Udyog
Vihar, Phase-VI, Sec-37, Gurgoan, |
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|
Manufacturing Unit 2: |
131-132, Udyog
Vihar, Phase- VI, Sec- 37, Gurgaon, |
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|
|
|
Manufacturing Unit 3: |
Plot No.
274-275, Udyog Vihar, Phase VI, Sec-37, Gurgoan, |
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Manufacturing Unit 4: |
No.301, Udyog
Vihar, Phase- VI, Sec-37, Gurgaon, |
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|
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|
Manufacturing Unit 5: |
122-123, Udyog
Vihar, Ph-VI, Sec-37, Gurgaon, |
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|
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|
Manufacturing Unit 6: |
535, Udyog Vihar, Phase-VI, Sector-37, Gurgaon, |
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Manufacturing Unit 7: |
343, Udyog Vihar, , Phase- VI, Sector -37, Gurgaon, |
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|
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Manufacturing Unit 8: |
38-39, Sec-34,
Gurgoan (Haryana), |
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Manufacturing Unit 9: |
424, Udyog
Vihar, Phase-VI, Sec-37, Gurgoan, |
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|
|
|
Manufacturing Unit 10: |
161, Sec-5, IMT,
Manesar, Gurgaon (Haryana), |
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|
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Manufacturing Unit 11: |
18, Sec-6, IMT Manesar, Gurgaon (Haryana), |
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Manufacturing Unit 12: |
30, Sector-5, IMT, Manesar, Gurgaon (Haryana), |
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|
|
|
Manufacturing Unit 13: |
27, Sector-5, IMT Maneser, Gurgaon, |
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|
|
Warehouse 1: |
135-136, Udyog
Vihar , Phase VI , Gurgaon, |
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|
|
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Warehouse 2: |
95-A, Sec-37,
Ph-VI, Udyog Vihar, Gurgaon, |
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Warehouse 3: |
23, Sec-7, IMT, Manesar, Gurgoan (Haryana), |
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Warehouse 4: |
267, Sec-6, IMT,
Maneser, Gurgaon (Haryana), |
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Warehouse 5: |
268, Sec-6, IMT,
Maneser, Gurgaon (Haryana), |
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|
Warehouse 6: |
269, Sec-6, IMT,
Maneser, Gurgaon (Haryana), |
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|
|
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Warehouse 7: |
175, Sec-4, IMT,
Manesar, Gurgaon, |
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Warehouse 8: |
160, Sector-4,
IMT, Manesar, Gurgaon, |
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Warehouse 9: |
155, Sector-4, IMT Maneser, Gurgaon, |
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Warehouse 10: |
28, Sector-5, IMT Maneser, Gurgaon, |
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Warehouse 11: |
17, Sector -4, IMT Maneser, Gurgaon, |
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Warehouse 12: |
93, Sector-5, IMT Maneser, Gurgaon, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. D.P.S. Kohli |
|
Designation : |
Chairman-cum-Whole
Timer Director |
|
Date of Birth/Age : |
51 Years |
|
Qualification: |
B. Tech (Mech) |
|
Experience: |
28 Years |
|
Date of Appointment : |
01.04.2003 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Bhupinder
Singh |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr. Gurmeet
Singh Sawhney |
|
Designation : |
Deputy Managing
Director |
|
Date of Birth/Age : |
50 Years |
|
Qualification: |
B.Com |
|
Experience: |
26 Years |
|
Date of Appointment : |
25.11.1994 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Kailash
Chand Sharma |
|
Designation : |
Whole Time
Director |
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|
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|
Name : |
Mr.
Krishnamurthy Santhanam |
|
Designation : |
Director |
|
Other Directorship: |
Chairman |
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|
|
|
Name : |
Mr. Grish
Chandra Raghubir |
|
Designation : |
Director |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Vinod
Chander Sinha |
|
Designation : |
Director |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Gurdarshan Singh
Bhalla |
|
Designation : |
Director |
|
Date of Birth/Age : |
29.04.1928 |
|
Qualification: |
Masters degree in Maths and Economics and Doctorate in Economics |
|
Date of Appointment : |
31.01.2007 |
|
|
|
|
Name : |
Mr. Virendra
Kumar Gupta |
|
Designation : |
Director |
|
Date of Birth/Age : |
17.11.1947 |
|
Qualification: |
Diploma in Mechanical Engineering |
|
Date of Appointment : |
30.01.2007 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Ajay Mittal |
|
Designation : |
Investors Director - UTI Investment
Advisory Services Limited - A/c Ascent |
|
Other Directorship: |
|
|
Committee Membership: |
Semantic Space
Technologies Limited |
|
|
|
|
Name : |
Mr. Anil Kevin Khatod |
|
Designation : |
Investor Director - Argonaut Ventures |
|
Other Directorship: |
|
|
Committee Membership |
|
KEY EXECUTIVES
|
Name : |
Ms. Poonam Chahal |
|
Designation : |
Company Secretary |
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|
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|
Name : |
Mr. Ajay Mahajan |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6642485 |
21.74 |
|
|
6642485 |
21.74 |
|
|
-- |
-- |
|
Total shareholding of Promoter and Promoter Group (A) |
6642485 |
21.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3336971 |
10.92 |
|
|
2896450 |
9.48 |
|
|
6233421 |
20.40 |
|
|
|
|
|
|
6258779 |
20.49 |
|
|
|
|
|
|
9150133 |
29.95 |
|
|
1727627 |
5.65 |
|
|
538952 |
1.76 |
|
|
15 |
- |
|
|
480095 |
1.57 |
|
|
58842 |
0.19 |
|
|
17675491 |
57.85 |
|
Total Public shareholding (B) |
23908912 |
78.26 |
|
Total (A)+(B) |
30,551,397 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
30,551,397 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Retailer of Integrated Apparels |
||
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||
|
Products : |
|
PRODUCTION STATUS As on 31.03.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Garments |
Pcs |
350.00 |
220.28 |
Note:
- Installed Capacity of the company is
only indicative as it depends on product mix and level of outsourcing.
- Installed capacity is as certified by the
management and have not been verified by the auditor as a technical
matter.
GENERAL INFORMATION
|
No. of Employees
: |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
|
|
Name : |
R. Chadha and Associates Chartered Accountants |
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|
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Wholly Owned Subsidiary Company: |
DBG Retail
Holdings Limited |
|
|
|
|
Companies Under the same management: |
i) Klone Infrastructure Private Limited ii) K and S Knitwears Private Limited iii) PBP Marketing private Limited iv) Klone Avinash Infrastructure Private Limited v) Gartex Concept Clothings Limited vi) Venezia Leathers Private Limited vii) S.R. Resorts Private Limited viii) JEG Hospitality Holdings Limited ix) Vian Hospitality Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36,300,000 |
Equity Shares |
Rs.10/- Each |
Rs.363.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30,551,397 |
Equity Shares |
Rs.10/- Each |
Rs.305.514
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 |
305.514 |
305.514 |
305.514 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4741.701 |
3946.445 |
3190.832 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5047.215 |
4251.959 |
3496.346 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5261.796 |
5200.225 |
2065.775 |
|
|
2] Unsecured Loans |
1337.177 |
1029.080 |
2126.858 |
|
|
TOTAL BORROWING |
6598.973 |
6229.305 |
4192.633 |
|
|
DEFERRED TAX LIABILITIES |
20.279 |
24.573 |
19.877 |
|
|
|
|
|
|
|
|
TOTAL |
11666.467 |
10505.837 |
7708.856 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1062.163 |
1137.201 |
585.750 |
|
|
Capital work-in-progress |
543.458 |
105.332 |
136.803 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.716 |
20.236 |
405.204 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6800.333
|
7477.579
|
5443.408 |
|
|
Sundry Debtors |
1487.885
|
662.319
|
345.258 |
|
|
Cash & Bank Balances |
370.533
|
352.835
|
195.936 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
3385.916
|
2409.474
|
2154.313 |
|
Total
Current Assets |
12044.667
|
10902.207
|
8138.915 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1148.129
|
1212.305
|
1105.189 |
|
|
Other Current Liabilities |
883.324
|
482.624
|
477.564 |
|
|
Provisions |
0.000
|
0.000
|
0.000 |
|
Total
Current Liabilities |
2031.453
|
1694.929
|
1582.753 |
|
|
Net Current Assets |
10013.214
|
9207.278
|
6556.162 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
27.916 |
35.790 |
24.937 |
|
|
|
|
|
|
|
|
TOTAL |
11666.467 |
10505.837 |
7708.856 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12037.631 |
10466.842 |
7934.580 |
|
|
|
Other Income |
29.094 |
164.506 |
42.342 |
|
|
|
TOTAL (A) |
12066.725 |
10631.348 |
7976.922 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material
Consumed |
2185.544 |
2220.460 |
2992.932 |
|
|
|
Purchase
(Finished Goods) |
1903.767 |
2863.188 |
820.022 |
|
|
|
Manufacturing
Expenses |
2056.959 |
2417.784 |
2540.139 |
|
|
|
Payment To &
Provision For Employees |
137.741 |
149.002 |
117.564 |
|
|
|
Administrative
& General Expenses |
178.833 |
170.887 |
145.042 |
|
|
|
Selling Expenses |
2644.076 |
2528.927 |
1728.489 |
|
|
|
Increase/(Decrease)
In Stock |
643.686 |
(1965.525) |
(1933.390) |
|
|
|
TOTAL (B) |
9750.606 |
8384.723 |
6410.798 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2316.119 |
2256.625 |
1566.124 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
906.598 |
885.337 |
416.848 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1409.521 |
1361.288 |
1149.276 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
164.338 |
153.004 |
97.650 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1245.183 |
1208.284 |
1051.626 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
427.186 |
412.714 |
356.754 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
817.997 |
795.570 |
694.872 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1726.090 |
970.477 |
288.903 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Prior Period
Expenses |
15.617 |
7.362 |
3.203 |
|
|
|
Proposed
Dividend |
6.110 |
30.551 |
0.000 |
|
|
|
Dividend
Distribution Tax |
1.015 |
5.192 |
0.000 |
|
|
|
Debenture
redemption reserve |
203.911 |
0.000 |
0.000 |
|
|
|
Leave Encashment
Reversed |
0.000 |
3.147 |
0.000 |
|
|
|
Income Tax For
Previous Year |
0.000 |
0.000 |
10.027 |
|
|
|
Wealth Tax For
Previous Year |
0.000 |
0.000 |
0.068 |
|
|
BALANCE CARRIED
TO THE B/S |
2317.434 |
1726.089 |
970.477 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
0.000 |
0.000 |
3.845 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
3.683 |
108.302 |
50.079 |
|
|
|
|
|
|
|
|
|
|
Basic/ Diluted
Earnings Per Share (Rs.) |
26.77 |
26.04 |
23.79 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
1615.150 |
1633.560 |
1097.890 |
1043.000 |
|
Total Expenditure |
1263.410 |
1357.120 |
1410.460 |
2021.040 |
|
PBIDT |
351.740 |
276.440 |
[312.570] |
[978.040] |
|
Other Income |
0.830 |
2.940 |
11.290 |
8.900 |
|
Operating Profit |
352.570 |
279.380 |
[301.280] |
[969.140] |
|
Interest |
233.410 |
213.570 |
295.530 |
219.250 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
119.160 |
65.810 |
[596.810] |
[1188.390] |
|
Depreciation |
33.730 |
33.840 |
36.130 |
29.040 |
|
Profit Before Tax |
85.430 |
31.970 |
[632.940] |
[1217.430] |
|
Tax |
30.160 |
11.710 |
[1.480] |
[1129.580] |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After TAx |
55.270 |
20.260 |
[631.460] |
[87.850] |
|
Extraordinary Items |
[0.210] |
2.350 |
[2539.490] |
[3.250] |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
55.060 |
22.610 |
[3170.970] |
[91.100] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.78
|
7.48
|
9.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.34
|
11.54
|
13.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.50
|
10.03
|
12.05 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.28
|
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.71
|
1.86
|
1.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.93
|
6.43
|
5.14 |
LOCAL AGENCY FURTHER INFORMATION
Company History:
Subject an integrated company starting with designing, procuring fabric,
garment distribution and retails of apparel and accessories, which was established
its footprint on 25th November 1994 as Charlie Creations Private Limited. All
stages of production, distribution and sales are under the total control of
company, which is the reason to hold uniform positioning, prices and retail
ambience throughout
REVIEW OF PERFORMANCE
During the year, the Company recorded growth in topline as well as in
bottom line. Income from operations went up from Rs 10631.348 Millions in F.Y.
2008-09 to Rs. 12066.726 Millions in F.Y. 2009-10 recording a growth of 13.50
percent. Profit before depreciation, Interest and tax stood at Rs. 2316.119
Millions in F.Y. 2009-10, an increase of 3.09 percent over the preceding year.
Profit after tax for F.Y. 09-10 was Rs 817.997 Millions, an increase of 2.82
percent over F.Y.08-09.
SUBSIDIARY COMPANY:
During the Financial Year 2009-10, the Company has only one subsidiary
Company viz., M/s. DBG Retail Holdings Limited.
AWARDS and RECOGNITION
The following are some of the recognitions that the Company won during
the year 2009-2010:
• Nominated in the Retail category for the 4th NDTV Profit Business
Leadership Award.
• Award of "Emerging
Corporate" at the Corp Excel Award 2008 for National mSME
Excellence organized by Corporation Bank.
• Received “The Star Retailer
Award” for being the Value Retailer of the Year organized by Franchise
• The "Best Clothing
Company of the Year" of CMAI.
• Nominated for the Best Advertising Campaign of the year by CMAI.
• Nominated for the “Brand of
the Year” by CMAI.
MANAGEMENT
DISCUSSION and ANALYSIS
Economic Overview:
Year 2009 started on the gloomy note; however the trend reversed from
fourth quarter of the year. According to the estimates by the Ministry of
Statistics and Programme Implementation, the Indian economy has registered a
growth of 7.4 per cent in 2009-10, with 8.6 per cent year-on-year (y-o-y)
growth in its fourth quarter. The growth is driven by robust performance of the
manufacturing sector on the back of government and consumer spending.
Worldwide, there is a rapid change in consumer preferences in terms of
style and fashion preferences. More and more consumers are shifting towards
high end value added products. This has necessitated efficient service coupled
with brand offerings which in turn has led to new opportunities for the apparel
industry. Over the last couple of years the modern retail sector has emerged as
one of the fastest growing sectors in the Indian economy.
INDUSTRY OVERVIEW:
Indian Retail
Sector:
Organized Retail
that the opportunity in
10 per cent coming from organised retail, reflecting a fast-growing
middle class, demanding higher quality shopping
environments and stronger brands, the report added
Indian Apparel Market
Indian apparel sales are expected to reach an estimated $25 billion this
year, having grown in excess of 10 percent over the past 5 years—a growth rate
faster than that of the overall
Business Review:
Koutons was born with the forward visionary thought of providing
affordable men’s wear for masses. Today, better known as Koutons Retail India
Limited, it has two brands Koutons and Charlie Outlaw. Company moved up the
value chain from a garment manufacturer to a retailer by launching its first
own stores in 2002. With more than 1400 outlets across
Koutons Retail has extended its brand with the introduction of Les Femme
(women wear) and Koutons Junior (kids wear). The collection offers a wide range
of formal and casual wear for women and children. Koutons Junior caters to
young boys and girls in the age group of 2-14yrs. Les femme on the other hand
caters to young women in the age group of 14-34 yrs of age.
Koutons will continue to focus on maintaining and reinforcing the image
of its existing exclusive brand outlets and also introduce its apparel to new
geographical areas and assessing fashion trends, making fashion forecasts and
offering products to match the global fashion movements will keep Koutons at
the leadership position for times to come.
As of March 31, 2010, the “Koutons” brand was sold on a total floor area
of approx. 969,565 sq. ft. and the “Charlie Outlaw” brand was sold on a total
floor area of approx. 386,694 sq. ft.
Financial
Overview:
Koutons delivered a growth of 15% in fiscal year 2010. In the last 5
years they have been growing at CAGR of 83.33%. The ability to penetrate
further into Tier II and Tier III cities has resulted in robust results during
the year. Total revenue stood at Rs. 1,2066.700 Millions for the year ended
31st March 2010, as compared to Rs. 10631.000 Millions in fiscal year 2009.
Profitability of the company during the year was at Rs.817.900 Millions, as
compared to Rs 795.000 Millions in fiscal year 2009, registered a growth of
2.82%.
EPS for the fiscal year 2010 was at Rs. 26.77. As of today they have
1307 stores spread in north, south, east and west of the country, out of which
they have 250 family stores. So in terms of area they have grown from 12.92
lakh sq. ft. to 13.56 lakh sq. ft.
Financial Highlights:
• For the year FY10 the company reported a 15% net sales growth with the
company's Koutons format of stores posting a 15.77% sale growth and Charlie
Outlaw format posting a 13.09% sales growth for the year.
• The EBITDA margins declined from 21.46% in FY09 to 19.24% in FY10.
• On YoY basis the net profit margin has decreased from 7.60% in FY09 to
6.80% in FY10 due to increase in interest expenditure.
• The EPS of the company has marginally increased by 2.82% due to
marginal growth in the bottom line.
Opportunities:
• Increasing volumes under women's and children's wear
• Further penetration of stores in Tier II and Tier III cities
• Growing pie of footwear business as a percentage of total revenues
• Improved efficiency of working capital management
• Improvement in cost structure would add to operating margins of the
company
Outlook
The Company intends to consolidate its stores as “Family Stores” based
on the availability of demand and growing women's wear, children wear and
footwear in its overall contribution to sales. The company is seeking to
improve its sales and realization per sq. ft of old and new stores with a focus
on young generation and tier II and tier III cities. The company is presently
working on reducing stock levels by limiting to successful SKUs and also
reducing inventory in transit. It has also succeeded in reducing cost of
capital of its borrowings.
Contingent liabilities not provided for:
As on 31.03.2010
|
Particulars |
Amount Rs. In Millions |
|
i) Bank guarantee o/s |
1.258 |
|
ii) Claims against the company not acknowledged as debts in Respect
of past disputed liabilities of sales tax |
9.380 |
iii) Landlords Mr Jai Kishan Chikara and others
has filed civil suit for recovery amounting to Rs 2.000 Millions* against the
company.
iv) Various workmen have filed 4 labour cases
against the Company and the same are pending before different authorities as on
31.03.10
v) State government of U.P. has filed a case against
the company and same are pending before Commissioner (Stamp)
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
|
Particulars |
Quarter Ended 31.12.2010 |
Nine Month Ended 31.12.2010 |
|
|
Income |
|
|
|
|
a) Net Sales / Income from Operations |
1087.733 |
4318.937 |
|
|
b) Other Operating Income |
10.156 |
27.662 |
|
|
Total Operating Income |
1097.890 |
4346.599 |
|
|
Expenditure |
|
|
|
|
(a) (Increase)/decrease in Stock in Trade |
[863.347] |
[560.030] |
|
|
(b) Consumption of Raw Materials |
1418.534 |
1865.007 |
|
|
(c) Purchase of traded goods |
4.109 |
409.779 |
|
|
(d) Employees Cost |
25.159 |
80.379 |
|
|
(e) Depreciation |
36.133 |
103.694 |
|
|
(f) Other Expenditure |
826.013 |
2213.375 |
|
|
Total Expenditure |
1446.600 |
4112.205 |
|
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
[348.711] |
234.395 |
|
|
Other Income |
11.289 |
15.057 |
|
|
Profit/(Loss) before Interest and Exceptional items |
[337.422] |
249.452 |
|
|
Interest |
295.532 |
765.007 |
|
|
Profit / (Loss) after interest before Exceptional items |
[632.954] |
[515.555] |
|
|
Exceptional Items |
- |
- |
|
|
Profit / (Loss) From
Ordinary activities before Tax |
[632.954] |
[515.555] |
|
|
Provision for Taxation |
[1.477] |
[3.139] |
|
|
Net Profit/(Loss) From Ordinary activities after Tax |
[631.477] |
[512.416] |
|
|
Extraordinary Items |
2539.493 |
2542.047 |
|
|
Net Profit/(Loss) for the period |
[3170.971] |
[3054.463] |
|
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
305.514 |
305.514 |
|
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
|
Public Share
Holding |
|
||
|
Before
Extraordinary Items |
|
|
|
|
-Basic |
[20.67] |
[16.77] |
|
|
-Diluted |
[20.67] |
[16.77] |
|
|
After Extraordinary Items |
|
|
|
|
-Basic |
[103.79] |
[99.98] |
|
|
-Diluted |
[103.79] |
[99.98] |
|
|
Average of Public Share Holding |
|
|
|
|
- Number of Shares |
20772785 |
|
|
|
- Percentage of shareholding |
67.99% |
|
|
|
Promoters and Promoter group share holding |
|
|
|
|
a) Pledged / Encumbered |
|
||
|
- Number of Shares |
9581663 |
9581663 |
|
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
97.99% |
97.99% |
|
|
- Percentage of shares(as a % of the total share capital of the company) |
31.36% |
31.36% |
|
|
b) Non-encumbered |
|
||
|
- Number of Shares |
196949 |
196949 |
|
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
2.01% |
2.01% |
|
|
- Percentage of Share (as a % of the total share capital of the company) |
0.65% |
0.65% |
|
Notes:-
1. The above unaudited financial
were reviewed by the Audit Committee and approved by the Board of Directors at
their respective meeting held on 08 .02.2011 and
a limited review of the same is. being earned out by the
Statutory Auditors of the Company.
2. Basic and Diluted
earning per: share has been calculated on accordance with the Accounting
Standard-20 (AS-20).
*3. During the Quarter
after careful review the Company has decided to write off debtors and advances
aggregating Rs.1038.600 millions and has further provided for Rs. 1500.000
millions towards possible impairment in value of inventories. It is proposed
that a detailed exercise of critical evaluation of realisibilitv of Inventories
be undertaken by an independent stock auditor Final decision on Inventory write
offs will be taken after the completion of the exercise in Q4. These write
offs/provision have been considered as extra ordinary items being so in nature.
4. Previous period figures
have been regrouped/rearranged wherever necessary for the purpose of
comparison.
5. The Company operates in
multiple segment, hut the disclosure requirement under AS 17 issued by ICAI is not applicable.
6. The Investor Complaint Details
for the Quarter ended December 31 st 2010 are mentioned below:
Complaints at the beginning
of the Quarter - Nil
Complaints received during
the Quarter - 21
Complaints resolved /
attended during the Quarter - 21
Complaints pending at the
end of the Quarter - Nil
Fixed Assets:
·
Land - Free Hold
·
Buildings
·
Capital Expansions
·
Plant and Machineries
·
Vehicles
·
Vehicle-Commercial
·
Computers
·
Fixed Assets At Galary
·
Furniture and Fixture
Website Details:
Profile:
Koutons Retail India
Limited is the leading retailer of readymade and fashion wear brand in the
country today. With more than 1400 outlets across
Koutons was born in
1991 as Charlie Creations and are now Koutons Retail India Limited. Koutons
started primarily as a denim brand but are today manufacturing and selling
complete men, women and kids wardrobe under the brand name Koutons, Les Femme
and Koutons Junior respectively. Another brand from the stable of Koutons is
Charlie Outlaw, which caters to the teens of the country with apparels
including jeans, T- shirts, jackets etc. Koutons Brand is catering to the Upper
and Upper Middle Class of Society with a vast target age group between 18-60
years.
"Value for Money
and High on Fashion" being their USP, Koutons has given the brand an
extension delving into specific consumer segments. The garments are made keeping in view the overall need of the niche
market and the basic/fashion demand of the Indian masses. Our product range
also caters to the tastes of all segments. Their Brand is placed as the most
dynamic brand of
Awards :
2009-
- Koutons
received the Award of "Emerging Corporate" at the Corp Excel
Award 2008 for National mSME Excellence on 30th Dec, 2009, organized by
Corporation Bank.
- Koutons
received "The Value Retailer of the Year" Award of Star Retailer
on 27th November, 2009 organized by Franchise
- Koutons
received the "Best Clothing Company of the Year" of CMAI Apex
Awards on 21st December, 2009.
- Koutons was
also nominated for the "Best Advertising Campaign of the Year"
and "Brand of the Year" for CMAI's Apex Award.
- Mr. D.P.S
Kohli was awarded for "Retail Excellence" award by Asia Retail
Congress in January, 2009.
2008-
- Mr. D.P.S.
Kohli, Chairman, Koutons Retail India Limited. was awarded the title of
“Most Admired Fashion Face” at Images Fashion Awards ‘08 Mumbai
- Koutons
Retail India Limited was award “Most Admired Fashion Group” at Images
Fashion Awards ’08 Mumbai.
- Mr. DPS Kohli
was awarded the title of “2008 Top Marketing Man Award” by IMM,
- Awarded the
“Brand of the Year Casual (SME) : Charlie Outlaw” by CMAI.
- Award of Best
Display at
- Koutons
Retail India Limited has won the prestigious “Brand of the Year Mens Casual
Wear (Large)” Award at the National Awards for the excellence in Apparel
business organized by CMAI.
- Franchise
Award for Excellence in Franchising & Business Development- Retail.
- Nominated for
the Clothing Company of the Year- Domestic by CMAI.
- Nominated for
the Best Advertising Campaign of the Year – Retail by CMAI.
- Koutons was
nominated in Textile & Apparel Category in Emerging India Awards by
ICICI.
2007-
- Mr. DPS Kohli
was awarded the title of “UDYOG VIBHUSHAN for Excellence in Industrial Performance”
by the
- Koutons
Retail India Limited has won the prestigious “Chain Store of the Year”
Award at the National Awards for the excellence in Apparel business
organized by CMAI.
- Koutons is also
credited with another award of “Brand Entrepreneur of the Year” Award at
the APEX AWARDS 2007 organized by CMAI.
- Nominated for
the Best Advertising Campaign of the Year- Retail by CMAI
2006-
- Awarded the
“Most Dynamic Brand of the Year” by Lycra Images Fashion Awards
- Awarded the
title of “Value Retailer of the Year” by Star Retailer- The Consumer Way.
- Koutons
Retail India Limited nominated for “Chain Store of the Year” Award at the National
Awards for the excellence in Apparel business organized by CMAI.
- Nominated for
the “Brand of the Year Award – Men’s Casual Wear (Large) at Apex Award, by
the Clothing Manufacturers Association of India Group” at Images Fashion
Awards ’08 Mumbai.
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.44.46 |
|
|
1 |
Rs.71.67 |
|
Euro |
1 |
Rs.62.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
|
46 |
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.