MIRA
INFORM REPORT
|
Report Date : |
27.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
DLF BRANDS LIMITED |
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Formerly Known
As : |
DLF BRANDS PRIVATE LIMITED [w.e.f. 06.04.2009] |
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Registered
Office : |
1-E, Jhandewalan Extension, Naaz Cinema Complex, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
10.03.2006 |
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Com. Reg. No.: |
55-147368 |
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Capital
Investment / Paid-up Capital : |
Rs.80.000 Millions |
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CIN No.: [Company Identification
No.] |
U45201DL2006PLC147368 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELD10361B |
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PAN No.: [Permanent Account No.] |
AAFCA7971E |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The Company is engaged in the business
of retail trading of foreign lifestyle brands in |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B [26] |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of DLF Limited India. It is an established company
having moderate track. There appears huge accumulated losses recorded by the
company. However, trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. In view of strong promoters, the Company can be considered normal for
business dealings at usual trade terms and conditions and with some caution
in view of substantial losses recorded by the company. |
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
1-E, Jhandewalan Extension, Naaz Cinema Complex, |
|
Tel. No.: |
NA |
|
Fax No.: |
NA |
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E-Mail : |
|
|
Website : |
DIRECTORS
As on 30.09.2010
|
Name : |
Sunil Kumar Pandey |
|
Designation : |
Director |
|
Address : |
1167, Sector – 21, Gurgaon – 122016, |
|
Date of Birth/Age : |
29.05.1970 |
|
Din : |
00003371 |
|
Date of Appointment : |
10.03.2006 |
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|
|
|
Name : |
Mr. Lovekush Sharma |
|
Designation : |
Managing Director |
|
Address : |
C – 238A, |
|
Date of Birth/Age : |
09.03.1965 |
|
Din : |
00003395 |
|
Date of Appointment : |
23.04.2008 |
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|
|
|
Name : |
Ankur Jain |
|
Designation : |
Director |
|
Address : |
103, 1st Floor, Sahyog Appartment, Plot No.3, Mayur Vihar,
Phase – 1, |
|
Date of Birth/Age : |
13.03.1975 |
|
Din : |
00003637 |
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Date of Appointment : |
10.03.2006 |
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|
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|
Name : |
Pia Singh |
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Designation : |
Director |
|
Address : |
14, |
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Date of Birth/Age : |
26.12.1970 |
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Din : |
00067233 |
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Date of Appointment : |
06.03.2009 |
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Name : |
Mr. Sriram Khattar |
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Designation : |
Director |
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Address : |
D – 899, New Friends Colony, |
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Date of Birth/Age : |
26.12.1957 |
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Din : |
00066540 |
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Date of Appointment : |
06.03.2009 |
|
Date of Cessation : |
20.01.2011 |
KEY EXECUTIVES
|
Name : |
Mr. Neeraj Parmar |
|
Designation : |
Secretary |
|
Address : |
B – 11 / 63, Sector – 18, Rohini, |
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Date of Birth/Age : |
01.10.1971 |
|
Date of Appointment : |
06.02.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
DLF Limited |
|
7999994 |
|
Sanjay Goenka Jointly with DLF Limited |
|
1 |
|
Mr. B. K. Gupta |
|
1 |
|
Mr. K. K. Khanna |
|
1 |
|
Mr. R. K. Gupta |
|
1 |
|
Ankur Jain |
|
1 |
|
M. K. Jain |
|
1 |
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|
|
|
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Total |
|
8,000,000 |
As on 01.11.2010
|
Names of Allottees |
|
No. of Shares Allotted |
|
|
|
|
|
Ishtar Retail Private Limted |
|
92,000,000 |
As on 30.09.2010
|
Category |
Percentage |
|
|
|
|
Bodies corporate |
100.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the business
of retail trading of foreign lifestyle brands in |
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 : |
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Name : |
Walker Chandiok and Company Chartered Accountant |
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Address : |
L-41, Connaught Circus, |
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Holding Company
: |
DLF Limited L70101hr1963plc002484 |
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Subsidiary
Companies : |
Eros Retail Private Limited U45209dl2007ptc161768 Enki Retail Private Limited U45400dl2007ptc161485 Rod Retail Private Limited U45400dl2007ptc162328 Kapo Retail Private Limited U70102dl2007ptc161521 Juno Retail Private Limited U45400dl2007ptc161528 Rhea Retail Private Limited U45209dl2007ptc161760 Carreen Builders and Developers Private Limited U45400DL2007PTC165429 |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50,000,000 |
Equity Shares |
Rs.10/-each |
Rs.500.000 millions |
|
|
|
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|
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8,000,000 |
Equity Shares |
Rs.10/-each |
Rs.80.000 millions |
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|
|
|
|
|
|
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As on 01.11.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150,000,000 |
Equity Shares |
Rs.10/-each |
Rs.1500.000 millions |
|
|
|
|
|
|
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|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100,000,000 |
Equity Shares |
Rs.10/-each |
Rs.1000.000 millions |
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|
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FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
80.000 |
80.000 |
5.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
[242.899] |
[74.254] |
[0.203] |
|
|
NETWORTH |
[162.899] |
5.746 |
4.797 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
67.758 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
1056.448 |
563.172 |
56.200 |
|
|
TOTAL BORROWING |
1124.206 |
563.172 |
56.200 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
961.307 |
568.918 |
60.997 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
95.967 |
46.915 |
0.000 |
|
|
Capital work-in-progress |
36.014 |
14.739 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
251.250 |
104.100 |
1.500 |
|
|
DEFERREX TAX ASSETS |
35.722 |
35.722 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
93.065
|
18.190 |
0.000 |
|
|
Sundry Debtors |
10.403 |
11.806 |
0.000 |
|
|
Cash & Bank Balances |
3.720
|
22.014 |
3.514 |
|
|
Other Current Assets |
35.149
|
0.000 |
0.000 |
|
|
Loans & Advances |
543.844
|
409.344 |
56.138 |
|
Total
Current Assets |
686.181
|
461.354 |
59.652 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
79.061
|
36.585 |
|
|
|
Other Current Liabilities |
63.101
|
55.247 |
0.155 |
|
|
Provisions |
1.665
|
2.080 |
0.000 |
|
Total
Current Liabilities |
143.827
|
93.912 |
0.155 |
|
|
Net Current Assets |
542.354
|
367.442 |
59.497 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
961.307 |
568.918 |
60.997 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
113.839 |
5.969 |
0.000 |
|
|
|
Other Income |
73.474 |
467.905 |
0.138 |
|
|
|
TOTAL (A) |
187.313 |
473.874 |
0.138 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
69.016 |
3.912 |
0.000 |
|
|
|
Personnel Cost |
60.025 |
43.910 |
0.000 |
|
|
|
General, Administrative and Selling Expenses |
148.424 |
66.638 |
0.187 |
|
|
|
TOTAL (B) |
277.465 |
114.460 |
0.187 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
[90.152] |
359.414 |
[0.049] |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
59.619 |
466.220 |
0.140 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
[149.771] |
[106.806] |
[0.189] |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14.578 |
1.476 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
[164.349] |
[108.282] |
[0.189] |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
[34.656] |
0.000 |
|
|
|
|
|
|
|
|
|
|
Prior period
Item |
4.295 |
0.425 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
[168.644] |
[74.051] |
[0.189] |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[74.254] |
[0.203] |
[0.014] |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
[242.898] |
[74.254] |
[0.203] |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Trading Goods |
116.040 |
19.296 |
-- |
|
|
|
Capital Goods |
2.678 |
5.671 |
-- |
|
|
|
|
118.718 |
24.967 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
[90.03]
|
[15.63] |
[136.96] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[144.37]
|
[1814.07] |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[21.01]
|
[21.30] |
[0.32] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.01
|
[18.84] |
[0.04] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
[7.78]
|
114.35 |
11.75 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.77
|
4.91 |
384.85 |
LOCAL AGENCY FURTHER INFORMATION
Note : Registered office
address of the company has been shifted from P – 39, Basement NDSE, Part – II,
new
Operation
The Company
now has firm foothold in Specially Retailing and has signed new Joint Ventures
agreements for international brands like "ELC", a
Contingent
Liabilities
Rs. in millions
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
|
Contingent Liabilities not provided for , exist in respect of :- Guarantee issued by the company [inclusive of subsidiaries] |
3.572 |
0.000 |
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U45201DL2006PLC147368 |
|
Name of the
company |
DLF BRANDS LIMITED |
|
Address of the
registered office or of the principal place of business in |
1-E, Jhandewalan
Extension, Naaz Cinema Complex, |
|
This form is for |
Modification
of Charge |
|
Charge identification
(ID) number of the charge to be modified |
10204187 |
|
Type of charge |
|
|
Particular of
charge holder |
Yes Bank Limited,
9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli,
Mumbai – 400018, Maharashtra, India |
|
Nature of
instrument creating charge |
Supplemental Deed
of Hypothecation dated 14.09.2010 |
|
Date of
instrument Creating the charge |
14.09.2010 |
|
Amount secured by
the charge |
Rs.500.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Terms of
Repayment - MTL - Repayable in 12 equal quarterly installments after
moratorium period of 12 months from the date of first disbursement. Cash Credit -
Payable on demand. Working Capital
Demand Loan - Bullet repayment of the principal amount at the end of the
tenor. Bank Guarantee /
Buyers Credit / Letter of Credit / Stand By Letter of Credit - NA Margin – 25% for
Cash Credit Extent and
Operation of the charge - Facilities granted to M/s DLF Brands Limited shall
be secured by - a) Exclusive
charge on all current assets (including Loans and Advances) and all movable
fixed assets (including plant and machinery) of the Company (both present and
future) |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
All Current Assets
(both present and future) including loans and Advances of the Borrower (both
present and future) All Movable Fixed
Assets including Plant and Machinery of the Borrower (both present and
future). |
|
Date of
instrument modifying the charge |
28.04.2010 |
|
Particulars of
the present modification |
The charge to be
extended for the additional term loan of Rs. 100.000 millions and enhanced
Working Capital of Rs. 150.000 millions sanctioned in addition to existing
Term Loan and Working capital facilities of Rs. 250.000 millions aggregating
to Rs. 500.000 millions sanctioned by Yes Bank on a) All Current
Assets (Both Present and Future) including loans and Advances b) All Movable
Fixed Assets including Plant and Machinery (Both Present and Future) |
FIXED ASSETS :
- Leasehold
Improvements
- Computer
- Office
Equipments
- Software
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.44.37 |
|
|
1 |
Rs.72.34 |
|
Euro |
1 |
Rs.63.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
- |
|
--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 |
|
26 |
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.