MIRA
INFORM REPORT
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Report Date : |
11.06.2011 |
IDENTIFICATION DETAILS
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Name : |
MADURA GARMENTS LIFESTYLE RETAIL COMPANY LIMITED |
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Registered
Office : |
Indian Rayon Compound, Veraval 362266, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
01.05.2007 |
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Com. Reg. No.: |
04-058604 |
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Capital
Investment/ Paid-up Capital: |
Rs. 200.000 Millions |
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CIN No.: [Company Identification
No.] |
U18101GJ2007PLC058604 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRM11824B |
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PAN No.: [Permanent Account No.] |
AAFCM0483M |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Importer and Retailer of Apparel Accessories. |
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No. of
Employees: |
90 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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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 : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Aditya Birla Nuvo Limited. It is an
established company having moderate track. Profitability of the company is
under pressure. There appear huge accumulated losses recorded by the company.
However, trade relations are reported as fair. Business is active. Payments
are reported to be slow. In view of strong holding company, subject can be considered normal
for business dealings at usual trade terms and conditions, with slight
caution, on account of accumulated losses. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
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Name : |
Mr. Nandakumar |
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Designation : |
Assistant Manager |
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Contact No.: |
91-9743999441 |
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Date : |
10.06.2011 |
LOCATIONS
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Registered Office : |
Indian Rayon Compound, Veraval 362266, |
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Tel No.: |
91-2876-245711 |
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Mobile No.: |
91-9743999441 (Mr. Nandkumar) |
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E-Mail : |
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Website: |
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Area: |
4000 sq.ft. (Leased) |
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Factory : |
No.110 4th Cross, 5th Block, Koramangala
Industrial Layout, Koramangala, |
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Tel. No.: |
91-80-66915000 / 66182000 |
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Mobile No.: |
91-9886000837 |
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Fax No.: |
91-80-66915050 |
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E-Mail : |
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Website: |
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Area: |
4000 Sq. fts |
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Location: |
Leased |
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Corporate
Office: |
Aditya Birla Group, 111-112, 3rd Cross, 1st
Main, 7th Block Koramangala, |
DIRECTORS
As on 31.03.02010
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Name : |
Mr. Pranab Barua |
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Designation : |
Director |
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Date of Birth/Age : |
21.09.1952 |
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Date of Appointment : |
27.01.2009 |
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Name : |
Mr. Ashish Dixit |
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Designation : |
Director |
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Address : |
E-405, Raheja residency, 8th C, |
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Date of Birth/Age : |
15.07.1969 / 47 years |
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Qualification : |
Post Graduate |
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Date of Appointment : |
01.10.2007 |
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Name : |
Mr. Sushil Agarwal |
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Designation : |
Director |
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Name : |
Mr. Vishwanathan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. George M Santacroce. |
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Designation : |
Chief Executive Officer. |
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Name : |
Mr. Deepanjan Bandyppadhy |
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Designation : |
Manager |
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Designation : |
Mr. Mohana Sundaram G |
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Address : |
Secretary |
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Qualification : |
17.10.1967 |
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Date of Appointment : |
15.10.2008 |
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Name : |
Mr. Nandakumar |
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Designation : |
Assistant Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Equity Shares
(As on 15.07.2009)
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Names of Shareholders |
No. of Shares |
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Mr. Laxminarayan |
49994 |
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Mr. Ashish Dikshit |
1 |
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Mr. Adesh Kumar Gupta |
1 |
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Mr. Manoj Kedia |
1 |
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Ms. Pinky Mehta |
1 |
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Mr. Anil Rustogi |
1 |
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Mr. Pranab Barua |
1 |
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Aditya Birla Nuvo Limited |
9950000 |
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Total |
10000000 |
Preference Shares
(As on 15.07.2009)
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Names of Shareholders |
No. of Shares |
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Aditya Birla Nuvo Limited |
10000000 |
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Total |
10000000 |
AS ON 15.07.2009
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
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100.00 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Importer and Retailer of Apparel Accessories. |
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Products : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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Customers : |
Retailers |
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No. of Employees : |
90 (Approximately) |
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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 : |
Deloitte Haskins and Sells / Mr. S Ganesh Chartered Accountants |
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Address : |
Deloitte Centere, |
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Fellow Subsidiaries : |
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Holding Company
: |
CIN No.: L17199GJ1956PLC001107
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10 each |
Rs.100.000 millions |
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10000000 |
Redeemable Cumulative Preference Shares |
Rs. 10 each |
Rs.100.000 millions |
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Total |
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Rs. 200.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares * |
Rs. 10 each |
Rs.100.000 millions |
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10000000 |
Redeemable Cumulative Preference Shares ** |
Rs. 10 each |
Rs.100.000 millions |
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Total |
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Rs. 200.000
Millions |
*Includes
-10,000,000 (Previous year 9,950,000) Equity Shares held by the Holding
Company, Aditya Birla Nuvo Limited
-Nil (Previous year - 50,000) Equity shares held by Aditya Birla Capital
Limited (formerly Laxminarayan Investments Limited) (Holding company until 26th
March, 2009)
**All the above mentioned Preference Shares are held by the Holding
Company Aditya Birla Nuvo Limited
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
200.000 |
200.000 |
0.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(963.714) |
(594.797) |
(106.533) |
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NETWORTH |
(163.714) |
(394.797) |
(106.033) |
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LOAN FUNDS |
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1] Secured Loans |
534.117 |
562.441 |
0.000 |
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2] Unsecured Loans |
791.300 |
199.800 |
213.100 |
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TOTAL BORROWING |
1325.417 |
762.241 |
213.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
561.703 |
367.444 |
107.067 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
284.323 |
282.699 |
2.952 |
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Capital work-in-progress |
100.554 |
13.115 |
86.758 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
126.585
|
106.189
|
0.000 |
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Sundry Debtors |
31.027
|
0.664
|
1.501 |
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Cash & Bank Balances |
14.818
|
2.062
|
1.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
140.903
|
190.009
|
45.934 |
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Total
Current Assets |
313.333
|
298.924 |
48.535 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
121.605
|
188.363 |
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Other Current Liabilities |
11.013
|
35.718
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Provisions |
3.889
|
3.213
|
0.000 |
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Total
Current Liabilities |
136.507
|
227.294 |
31.178 |
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Net Current Assets |
176.826
|
71.630 |
17.357 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
561.703 |
367.444 |
107.066 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income from Operation |
254.072 |
38.458 |
1.501 |
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Other Income |
50.058 |
0.007 |
0.000 |
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TOTAL (A) |
304.130 |
38.465 |
1.501 |
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Less |
EXPENSES |
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Cost of Materials |
215.625 |
143.796 |
1.431 |
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Employees Remuneration |
81.132 |
162.246 |
19.538 |
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Increase/(Decrease) in Finished Goods |
[20.396] |
[106.189] |
0.000 |
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Manufacturing, Selling and other Expenses |
187.352 |
236.311 |
78.108 |
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TOTAL (B) |
463.713 |
439.165 |
99.077 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(159.583) |
(399.699) |
(97.576) |
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Less |
FINANCIAL
EXPENSES (D) |
138.347 |
58.127 |
8.015 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(297.930) |
(457.826) |
(105.591) |
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Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
70.987 |
30.548 |
0.342 |
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PROFIT BEFORE
TAX (E-F) (G) |
(368.917) |
(488.374) |
(105.933) |
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Less |
TAX (H) |
0.000 |
0.110 |
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PROFIT AFTER TAX
(G-H) (I) |
(368.917) |
(488.264) |
(106.533) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(594.798) |
(106.533) |
0.000 |
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BALANCE CARRIED
TO THE B/S |
(963.715) |
(594.797) |
(106.533) |
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IMPORTS |
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Inventory Purchase |
91.450 |
86.629 |
NA |
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Capital Goods |
9.289 |
25.562 |
NA |
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Cost of Production testing |
1.324 |
0.368 |
NA |
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TOTAL IMPORTS |
102.063 |
112.559 |
NA |
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Earnings Per
Share (Rs.) |
(38) |
(2622) |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(121.30)
|
(1269.37) |
(7097.46) |
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Net Profit Margin (PBT/Sales) |
(%) |
(145.20)
|
(1269.89) |
(7057.49) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(67.36)
|
(83.97) |
(205.74) |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.48)
|
(1.24) |
0.99 |
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Debt Equity Ratio (Total Liability/Networth) |
|
(1.91)
|
(2.51) |
(2.30) |
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Current Ratio (Current Asset/Current Liability) |
|
2.30
|
1.32 |
1.55 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
in Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
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Due to Micro and Small Enterprises |
-- |
-- |
-- |
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Due to Others |
121.605 |
188.363 |
NA |
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Total |
121.605 |
188.363 |
NA |
Note:
Registered office of the company has been shifted from Plot No. 5B, Regent Gateway, Doddanekundi Village, KIADB Industrial Area, ITPL Road, Bangalore – 560 048, Karnataka to the present address w.e.f. 20.10.2009
REVIEW OF
PERFORMANCE
The Company is currently operating with two large format retail stores,
at Mumbai and
The Collective concept has been well received by its target customers.
With increased scale of operations, the terms of trade have been favorably
renegotiated with several international brands. The Collective has demonstrated
its capability to deliver at international standards of retail, which has
helped improve its brand portfolio. International brands such as Polo Ralph
Lauren, Dolce and Gabbana are now being retailed through the stores.
The Mumbai store has been positioned as an anchor store in “The
Palladium Mall”. The store has been well received by its target customers. The
Company’s third store will be launched during the coming financial
year at Ambience Mall,
During the year, the Company also started a separate institutional
business segment, which caters to customized orders from institutions.
PROSPECTS
The Indian luxury products market is poised to touch USD 2.55 billion by
2015 (Source: ATK India’s Luxury Review). The Collective, with its unique
lifestyle offering and its stores located in the mega cities, is well
positioned to achieve a leadership position in this market.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particulars |
31.03.2010 Rs.
in Millions |
|
Arrears of Preference Dividend |
8.110 |
|
Dividend Distribution tax there |
1.378 |
|
Customs duty on capital goods imported under EPCG scheme against which
export obligation is to be fulfilled |
3.037 |
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Capital Work-in-Progress includes advances against Capital Expenditure |
74.135 |
Form 8:-
|
This form is for |
Creation of
charge. |
|
Corporate
identity number of the company |
U18101KA2007PLC042671 |
|
Name of the
company |
MADURA GARMENTS LIFESTYLE RETAIL COMPANY LIMITED |
|
Address of the registered
office or of the principal place of
business in |
No.110 4th Cross, 5th Block, Koramangala
Industrial Layout, Koramangala, |
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Type of charge |
o
Book
Debts o
Movable
Property (not being pledge) o
Floating
Charge |
|
Particular of
charge holder |
CIN:
L65920MH1994PLC080618 Name: HDFC Bank
Limited. Address: Salco
Centre, E-Mail: shyam.nair@hdfcbank.com |
|
Nature of
description of the instrument creating or modifying the charge |
Letter of
Hypothecation of stock and book debts |
|
Date of
instrument Creating the charge |
02.07.2008 |
|
Amount secured by
the charge |
Rs.320.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
As may be agreed between the Board of Directors and the bank from time to
time. Terms of
Payments: o
Cash
Credit-on demand o
Working
Capital Demand Loan-Unless demanded earlier principal amount to be repaid as
bullet payment on the maturity date. Margin: o
For
Cash credit and Working Capital Demand Loan-25% o
Bank
Guarantees- Cash Margin 100% (tenor of Bank guarantees greater than 3 years) o
Letters
of Credit- NIL o
Or as
stipulated by the bank from time to time. Extent and
Operation of the Charge: Hypothecation by
way of first exclusive charge on the entire stock and book debts of the
company both present and future. |
|
Short particulars
of the property charged |
Hypothecation by
way of first exclusive charge on the entire stock and book debts of the
company both present and future. |
|
Corporate
identity number of the company |
U18101GJ2007PLC058604 |
|
Name of the
company |
MADURA GARMENTS LIFESTYLE RETAIL COMPANY LIMITED |
|
Address of the
registered office or of the principal place of business in |
Indian Rayon Compound, Veraval 362266, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Movable property
(not being pledge) |
|
Particular of
charge holder |
Dhanlakshmi Bank Limited, Ground Floor, Janmabhoomi Bhavan,
Janmabhoomi MArg, Fort, Mumbai 400001, Email: mumfort@dhanbank.co.in |
|
Nature of
instrument creating charge |
Term loan
agreement for Hypothecation of furniture and fixtures and other movable and
fixed assets and current assets of the company. Corporate guarantee
given by Aditya Birla Novo Limited. |
|
Date of
instrument Creating the charge |
30.03.2009 |
|
Amount secured by
the charge |
Rs. 480.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest 11% p. a. fixed
with annual reset clause. Terms of repayment 15 quarterly
installments of Rs. 31.250 millions commencing after 2 years from the date of
availment and Rs. 11.250 millions for the 16th Quarter Monthly interest
to be serviced separately as and when debited. Margin The Borrower to
maintain an asset cover on ( Fixed Assets
and Current Assets) of at least 125% of the term loan outstanding on residual
value basis. Extent and operation of the charge First charge on furniture
and fixtures and other movable fixed assets / present and future. Collateral:
Second charge on current assets / present and future (first charge with HDFC
Bank Limited, for the Working Capital Facilities availed from them. Corporate
Guarantee given by Aditya Birla Novo Limited, |
|
Short particulars
of the property charged (Including location of the property) |
Primary: First
charge on Furniture and fixtures and other movable fixed assets/present and
future. Collateral:
Second charge on Current Assets/present and future (First charge with HDFC
Bank Limited for the Working Capital Facilities availed from them). Corporate
Guarantee given by Aditya Birla Nuvo Limited |
Fixed Assets:
·
Leasehold Improvements
·
Plant and Machinery
·
Computer and Accessories
·
Office Equipments
·
Fixture and Fittings
·
Vehicles
Websites Details Attached:
News:
Madura Garments Lifestyle Retail Company, a 100% subsidiary of AV Birla Nuvo,
is working on setting up 12-14 stores to meet the fashion needs of the urban
Indian man. The new store chain — The Collective — will open doors in
The retail initiative will bring in some of the world’s edge of the fashion,
super-premium brands like 7 For All Mankind and True Religion to
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.44.72 |
|
|
1 |
Rs.72.93 |
|
Euro |
1 |
Rs.64.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--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 |
|
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.