MIRA
INFORM REPORT
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Report Date : |
29.07.2011 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE TRENDS LIMITED |
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Registered
Office : |
Reliance Corporate Park, Building No.4, Ground Floor, C Wing, Thane – Belapur
Road, Ghansoli, Navi Mumbai – 400701, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
13.12.2006 |
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Com. Reg. No.: |
11-166165 |
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Capital Investment
/ Paid-up Capital : |
Rs.0.500
Million |
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CIN No.: [Company Identification
No.] |
U51909MH2006PLC166165 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR22188F |
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PAN No.: [Permanent Account No.] |
AADCR7079N |
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Legal Form : |
A Closely Held Public Limited Liabilities Company. |
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Line of Business
: |
The Company is mainly engaged in ‘Organised Retail’ in
India. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Reliance Group, owned by Mr. Mukesh Ambani. It is
an established and reputed company having moderate track. There appears some accumulated
losses recorded by the company. However trade relations are reported as fair.
Business is active. Payment terms are unknown. In view of strong promoters, 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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Reliance Corporate Park, Building No.4, Ground Floor, C Wing, Thane –
Belapur Road, Ghansoli, Navi Mumbai – 400701, Maharashtra, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Arun Sirdeshmukh |
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Designation : |
Director |
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Name : |
Mr. Madhavan Ganesan |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
|
Line of Business : |
The Company is mainly engaged in ‘Organised Retail’ in
India. |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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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 : |
Chaturvedi and Shah Chartered Accountant |
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Address : |
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Ultimate Holding Company: |
· Reliance Industries Limited |
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Holding Company : |
· Reliance Retails Limited |
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Fellow Subsidiaries : |
· Reliance Corporate IT Park Limited · Reliance Digital Media Limited · Reliance Financials Distribution and Advisory Services Limited · Reliance Footprint Limited · Reliance Fresh Limited · Reliance Hypermart Limited · Reliance Infosolutions Private Limited · Reliance Leisures Limited · Reliance People Serve Limited · Reliance Supply Chain Solutions Limited · Reliance Digital Retail Limited · Retail Concepts and Services (India) Limited · Strategic Manpower Solutions Limited |
CAPITAL STRUCTURE
(AS ON 04.08.2010)
Authorised Capital: Rs.10.500 Millions
Issued, Subscribed & Paid-up Capital : Rs.10.500 Millions
(AS ON 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Share |
Rs.10/- each |
Rs.0.500 Million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
50000 |
Equity Share |
Rs.10/- each |
Rs.0.500
Million |
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NOTE:
All the above 50,000 (Previous year 50,000)
Equity Shares of Rs.10/- each are held by Reliance Retails Limited, the Holding
Company along with nominees.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
|
0.500 |
0.500 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
0.000 |
0.000 |
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4] (Accumulated Losses) |
|
(44.924) |
(31.040) |
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NETWORTH |
|
(44.424) |
(30.540) |
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LOAN FUNDS |
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1] Secured Loans |
|
4.639 |
8.495 |
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2] Unsecured Loans |
|
1651.752 |
870.701 |
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TOTAL BORROWING |
|
1656.391 |
879.196 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
|
1611.967 |
848.656 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
683.741 |
440.055 |
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Capital work-in-progress |
|
678.821 |
651.077 |
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INVESTMENT |
|
0.098 |
0.098 |
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DEFERREX TAX ASSETS |
|
19.165 |
11.864 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
|
637.190
|
331.983 |
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Sundry Debtors |
|
53.153
|
104.778 |
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Cash & Bank Balances |
|
4.812
|
2.202 |
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Other Current Assets |
|
0.008
|
0.000 |
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Loans & Advances |
|
166.060
|
142.607 |
|
Total
Current Assets |
|
861.223
|
581.570 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditor |
|
618.809
|
811.508 |
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Other Current Liabilities |
|
0.000
|
0.000 |
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Provisions |
|
12.276
|
24.507 |
|
Total
Current Liabilities |
|
631.085
|
836.015 |
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Net Current Assets |
|
230.138
|
(254.445) |
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MISCELLANEOUS EXPENSES |
|
0.004 |
0.007 |
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TOTAL |
|
1611.967 |
848.656 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
|
1841.993 |
1710.002 |
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Other Income |
|
10.499 |
2.865 |
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TOTAL (A) |
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1852.492 |
1712.867 |
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Less |
EXPENSES |
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Variation in Stocks |
|
(304.552) |
(322.938) |
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Purchases |
|
1591.030 |
1635.544 |
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Operating and Other Expenses |
|
545.299 |
425.374 |
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TOTAL (B) |
|
1831.777 |
1737.980 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
20.715 |
(25.113) |
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Less |
FINANCIAL
EXPENSES (D) |
|
0.777 |
0.018 |
|
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|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
19.938 |
(25.131) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
41.123 |
12.031 |
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|
PROFIT BEFORE
TAX (E-F) (G) |
|
(21.185) |
(37.162) |
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Less |
TAX (H) |
|
(7.301) |
(7.995) |
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PROFIT AFTER TAX
(G-H) (I) |
|
(13.884) |
(29.167) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
(31.040) |
(1.873) |
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BALANCE CARRIED
TO THE B/S |
|
(44.924) |
(31.040) |
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Export Value |
|
9.245 |
4.640 |
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Import Value |
|
3.360 |
93.006 |
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Earnings Per
Share (Rs.) |
|
(277.68) |
(583.33) |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
(0.75) |
(1.70) |
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Net Profit Margin (PBT/Sales) |
(%) |
|
(1.15) |
(2.17) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
(1.37) |
(3.64) |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.48 |
1.22 |
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Debt Equity Ratio (Total Liability/Networth) |
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(51.49) |
((56.16) |
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Current Ratio (Current Asset/Current Liability) |
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|
1.36 |
0.70 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONAL AND FINANCIAL REVIEW
The Company has maintained its growth by expanding its
retail presence in new cities and towns in India. The Company’s Reliance Trends
stores offer wide collection covering more than 100 International and Indian
brands including private label products at affordable prices for men, women and
kids. The latest fashion and high quality products coupled with incredible
price offering has been well received and appreciated by its customers. Apart
from ready-to-wear garments, the stores also cater to consumers who prefer to
shop for fabric and tailor their clothes. The Company has plans to expand
aggressively, thereby strengthening its foothold over the Indian Apparel
Industry.
The Company has incurred a loss of Rs.13.884 Millions for
the financial year ended March 31, 2010. With the optimization of resources and
further scaling up of retail store operations, the Company is confident of
posting better results in the future.
FIXED ASSETS:
· Building
· Plant and Machinery
· Electrical Installations Equipments
· Furniture and Fixtures
· Vehicles
· Leasehold Improvement
RELIANCE TRENDS WILL NOW MAKE UTTAR PRADESH
FOLLOW TREND
November 19, 2010
Reliance Trends, the fashion apparels
and accessories specialty concept of Reliance Retail marks its comeback in
Uttar Pradesh. India’s most populated state Uttar Pradesh welcomes back
Reliance Retail as the Reliance Retail’s retail format opened its 33rd store in
the state capital Lucknow. According to Arun Sirdeshmukh, the chief executive
of Reliance Trends, with this store opening in Lucknow, the company is keen to
make its presence felt in other cities of the state. This includes Kanpur,
Agra, Meerut and Bareilly. They are also planning a second store in Lucknow in
another six months. In the next six months six stores will be opened in UP.
This is part of an overall aggressive expansion strategy, under which they will
open 100 stores by 2011-12.
Close on the heels of Reliance Trends
returning to UP, the company’s other standalone niche specialty stores
including, Reliance Digital, Reliance Footprints and Reliance Music are
following suit. While Reliance Footprints and Reliance Digital are expected to
be launched in Lucknow early next year, talks for setting up Reliance Music
stores are in the final stages. This is our third year of operations and
already they are the largest chain of apparel stores in the country. The plan
is to take this forward by launching 100 stores by 2011-12 and 155 stores by
2012-13. All the locations have been identified and work is going on at these
sites at various stages, Sirdeshmukh informs.
Mukesh Ambani’s Reliance Industries didn’t have smooth sailing in UP for a
while. Three years ago, it was forced to close shop in the state as Reliance
Industries had made a failed attempt to foray into the organized retail sector
in India’s most populous state through Reliance Fresh.
Reliance Trends houses some of the best brands from various parts of the world
including their collections. The store’s core principle is – ‘Fashion at great
value’. It offers a mix of private brands across men’s, women’s and children’s
categories. The collection offers high fashion, latest trends, cuts and styles
and top-quality material backed by technology and innovation.
Reliance Trends seems unbeatable as they offer fashionable and trendy clothes
at prices unmatched in the market. Reliance Trends is leaving no stone unturned
in tapping the homogeneous mix of world famous brands and private brands and is
all set to expand to 56 stores by the end of current financial year.
RELIANCE TRENDS NOW MAKES RAIPUR TRENDY
OCTOBER 25, 2010
Reliance Trends, a subsidiary of
Reliance Retail, retail arm of Reliance Industries Limited (RIL) will now blend
the people of Raipur with quintessence of Trend to bring in a sparkling new
style in city of Raipur. The apparel, luggage and accessories specialty format
of Reliance Retail Limited, Reliance Trends recently launched a store in
Raipur. The store launched is the first ever Reliance Trends store of in this
city.
The store is in the City Centre Mega
Mall, which is spread over an area of 14,000 sq. ft. It offers a wide array of
exclusive designs for men’s, women’s and children’s apparel and accessories.
Reliance Trends National head –
operations, Akhilesh Prasad said, “We are thrilled to bring Reliance Trends to
City Centre Mega Mall, Raipur. We are confident that this store, with the
latest fashion, high-quality and affordable prices, will be welcomed by the
discerning consumers. At Reliance Trends, we bring the best of and widest
collection of designs for the entire family, from Reliance’s own collection,
under one roof. It’s our constant endeavor to deliver fantastic choice and
quality, yet at very economical prices”
Reliance Trends houses some of the best
brands from various parts of the world including their collections. The store’s
core principle is – ‘Fashion at great value’. It offers a mix of private brands
across men’s, women’s and children’s categories. The collection offers high
fashion, latest trends, cuts and styles and top-quality material backed by
technology and innovation.
Reliance Trends seems unbeatable as they
offer fashionable and trendy clothes at prices unmatched in the market. With
many other brands yet to come out with offers this festive season, it is an
early start by Reliance to get the offer publicized well in advance so that
people know exactly what they have to offer. This will ensure that the recall
value of the brand is higher and the people will remember this offer when they
go out to shop for either themselves or for others. The gift voucher may soon
become a popular gifting trend since the person who is being gifted the voucher
has flexibility of choosing his own gift.
Hence, its wait and watch now as
Reliance have taken the first step and whether other popular brands will follow
suit is a question that will soon be answered.
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.44.12 |
|
|
1 |
Rs.72.05 |
|
Euro |
1 |
Rs.63.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--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 |
|
28 |
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.