MIRA
INFORM REPORT
|
Report Date : |
06.05.2011 |
IDENTIFICATION DETAILS
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Name : |
SHOPPERS STOP LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
16.06.1997 |
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Com. Reg. No.: |
11-108798 |
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Capital
Investment / Paid-up Capital : |
Rs.349.143 Millions |
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CIN No.: [Company
Identification No.] |
l51900mh1997plc108798 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
mums39981E |
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PAN No.: [Permanent
Account No.] |
AABCS4383A |
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Legal Form : |
Public Limited Liability Company. The Company's shares are listed on
the Stock Exchange |
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Line of Business : |
Departmental Stores. |
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No. of Employees
: |
3577 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 12000000 |
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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. Trade
relations are reported as fair. Business is active. Payments are reported to be
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DENIED BY
|
Name : |
Mr. Prashant Sawant |
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Designation : |
Senior General Manager (Accounts) |
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Contact No.: |
91-22-42497000 |
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Date : |
05.05.2011 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-42497000 |
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Fax No.: |
91-22-28808877 |
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E-Mail : |
prashant.mehta@shoppersstop.com |
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Website : |
http://www.shoppersstop.com
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Store location : |
Western Region 1. 211 -D, 2. Krushal Commercial Centre, 3. Suburbia, Old Bandra Talkies, Linking
Road, Bandra (W), Mumbai-400050, 4. 5. Nirmal Lifestyles, L.B.S. Marg, Mulund
(W), Mumbai-400080, 6. Inorbit Mall, Plot no. 1406-A, 28/A, 7. Dynamix Mall, JVPD Scheme, Juhu,
Mumbai-400049, 8. Godrej Eternia, B Wing, Shivaji Nagar,
Mumbai-Pune Road, Pune-411005, Maharashtra, India 9. Nucleus Mall, 10. HomeStop, Inorbit Mall, 11. Inorbit Mall, Plot no. 39/1, Vashi,
Navi Mumbai - 400705, 12. HomeStop, Inorbit Mall, Vashi, Navi
Mumbai - 400705, Southern Region 1. Garuda Star Mall, 2. Commerce@Mantri, 3. Plot No. 1-11-251/1, 4. No. 2, 5. 1, Sampige Road, Next to Mantri Greens,
Before Sampige Theatre,
Malleshwaram, Bengaluru - 560 003 6. GVK One Mall, Road No. - 01,
Banjara Hills, 7. Inorbit Mall, Hi 8. HomeStop, Raheja Point No. 17/2, Magrath
Road, Bangalore-560025 Karnataka, India Northern Region 1. 2. Ansal Plaza, Hudco Palace, Andrews Ganj,
Khelgaon Marg, New Delhi -110049, Delhi, India 3. The Metropolitan Mall, 4. Shipra Mall, Shipra Suncity, 9 Vaibhav
Khand, Indirapuram, Ghaziabad -201012, Uttar Pradesh, India 5. HomeStop, Plot No.A/3, Select City Walk,
District Centre, Saket, New Delhi -110017, Delhi, India 6. E -
City Mall, Opp. Paryatan Bhavan, Beside Eldeco Green Compound, Gomti Nagar,
Lucknow - 226 010 7. Eros Mall, Plot no. 10, 8. The Great India Palace, Plot No : 2,
Sector 38 - A, New Okhla Industrial Development Area, District - Gautam Budh
Nagar, Noida-201301, Uttar Pradesh, India
9. Plot No. 2,
MGF Metropolitan Saket, District Centre Saket, Sector II, 10. Khasra No.
1/1/2, Jhotwara Road, Suncity Triton, Chomu Circle, Village Bassi,
Sitarampura, Tehsil Sawai, Jaipur - 302 012 11. Alpha One
Mall, MBM Farm, Sultan Wing, Near Istaa Hotel, G. T. Road, Amritsar - 143 010 Eastern Region 1. 10/3, Lala Lajpat Rai Sarani ( 2. City Centre, DC - 1 , Block - 1 , 3. South City Mall, 375, Prince Ankiar Shah
Road, Kolkata-700068, West Bengal, India |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. Chandru Raheja |
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Designation : |
Chairman |
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Name : |
Mr. Ravi C Raheja |
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Designation : |
Director |
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Name : |
Mr. Neel C raheja |
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Designation : |
Director |
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Name : |
Mr. Gulu L Mirchandani |
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Designation : |
Director |
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Name : |
Mr. Shahzaad S Dalal |
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Designation : |
Director |
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Name : |
Prof. Nitin Sanghavi |
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Designation : |
Director |
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Name : |
Mr. Deepak Ghaisas |
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Designation : |
Director |
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Name : |
Mr. Nirvik Singh |
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Designation : |
Director |
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Name : |
Mr. B S Nagesh |
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Designation : |
Managing Director |
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Name : |
Mr. Govind Shrikande |
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Designation : |
President, Executive Director and Chief Executive Officer |
KEY EXECUTIVES
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Name : |
Mr. Prashant Mehta |
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Designation : |
Vice President – Legal and Company Secretary |
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Audit Committee : |
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Mr. Deepak Ghaisas Mr. Prof. Nitin Sanghavi Mr. Shahzaad S. Dalai |
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Remuneration Committee/ Compensation Committee : |
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Mr. Gulu L. Mirchandani Mr. Prof. Nitin Sanghavi Mr. Shahzaad S. Dalai |
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Finance Committee : |
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Mr. Mr. Neel C. Raheja Mr. B. S. Nagesh Mr. Govind Shrikhande |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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3,695,000 |
4.50 |
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52,334,674 |
63.69 |
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56,029,674 |
68.19 |
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Total shareholding of Promoter and Promoter Group (A) |
56,029,674 |
68.19 |
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(B) Public Shareholding |
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5,190,130 |
6.32 |
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10,813,524 |
13.16 |
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16,003,654 |
19.48 |
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7,279,734 |
8.86 |
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894,431 |
1.09 |
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1,935,156 |
2.36 |
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24,187 |
0.03 |
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4 |
- |
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15,426 |
0.02 |
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8,757 |
0.01 |
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10,133,508 |
12.33 |
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Total Public shareholding (B) |
26,137,162 |
31.81 |
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Total (A)+(B) |
82,166,836 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
82,166,836 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Departmental Stores |
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GENERAL INFORMATION
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No. of Employees : |
3577 (Approximately) |
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Bankers : |
·
Axis Bank
Limited ·
Citibank N.A. ·
IDBI Bank
Limited ·
ICICI Bank
Limited ·
Kotak Mahindra
Bank Limited ·
Calyon Bank ·
HDFC Bank
Limited ·
Barclays PLC |
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Facilities : |
Note: Term Loans, Cash Credit Facilities and Working Capital Demand Loans are
secured by a first charge on all movable tangible properties and an exclusive
lien on lease deposits and on all current assets of the Company, both present
and future.
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Banking
Relations : |
- |
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Auditors : |
Statutory Auditors Deloitte
Haskins and Sells Chartered
Accountants 12, internal Auditors Ernst and
Young Private Limited Jalan Mill Compound, 95, Ganpatrao Kadam
Marg, Lower Parel, Mumbai-400 013, |
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Joint Venture : |
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Subsidiaries : |
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Associates: |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs. 10/- each |
Rs.1000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34914344 |
Equity Shares |
Rs. 10/- each |
Rs.349.143 millions
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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 |
349.143 |
348.660 |
348.620 |
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2] Optionally Convertible Warrants |
307.180 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2432.599 |
2099.643 |
2618.340 |
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4] (Accumulated Losses) |
0.000 |
(117.470) |
0.000 |
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NETWORTH |
3088.922 |
2330.833 |
2966.960 |
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LOAN FUNDS |
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1] Secured Loans |
1764.108 |
1782.221 |
1068.310 |
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2] Unsecured Loans |
150.000 |
295.410 |
661.000 |
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TOTAL BORROWING |
1914.108 |
2077.631 |
1729.310 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
16.850 |
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TOTAL |
5003.030 |
4408.464 |
4713.120 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2709.956 |
2355.060 |
2175.160 |
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Capital work-in-progress |
276.774 |
232.250 |
228.620 |
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INVESTMENT |
1196.745 |
974.456 |
807.210 |
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|
3549.678
|
3508.768
|
3645.640 |
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|
4746.423 |
4483.224 |
4452.85 |
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DEFERREX TAX ASSETS |
45.500 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1498.932
|
1449.810
|
1698.760 |
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Sundry Debtors |
109.090
|
112.987
|
81.950 |
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Cash & Bank Balances |
30.371
|
157.275
|
58.490 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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Loans & Advances |
1911.285
|
1788.696
|
1806.440 |
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Total
Current Assets |
3549.678
|
3508.768
|
3645.640 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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Sundry Creditors |
2608.210
|
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Other Current Liabilities |
88.393
|
93.393
|
2070.210 |
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Provisions |
79.020
|
14.836
|
73.300 |
|
Total
Current Liabilities |
2775.623
|
2662.070
|
2143.510 |
|
|
Net Current Assets |
774.055
|
846.698
|
1502.130 |
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5003.030 |
4408.464 |
4713.120 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
|
|
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Income |
14055.008 |
12631.310 |
10900.360 |
|
|
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Other Income |
63.117 |
79.510 |
93.320 |
|
|
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TOTAL (A) |
14118.125 |
12710.820 |
10993.680 |
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
8899.623 |
8068.030 |
|
|
|
|
Employees Cost |
875.855 |
858.800 |
|
|
|
|
Operating and Administrative Expenses |
3170.027 |
3291.580 |
10343.420 |
|
|
|
Exceptional Items |
(18.772) |
248.640 |
|
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|
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TOTAL (B) |
12926.733 |
12467.050 |
10343.420 |
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|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1191.392 |
243.770 |
650.260 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
224.435 |
256.030 |
112.350 |
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
966.957 |
(12.260) |
537.910 |
|
|
|
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|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
310.254 |
631.310 |
392.740 |
|
|
|
|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
656.703 |
(643.570) |
145.170 |
|
|
|
|
|
|
|
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|
Less |
TAX (H) |
154.398 |
(6.390) |
75.500 |
|
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|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
502.305 |
(637.180) |
69.670 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(147.600) |
489.580 |
NA |
|
|
|
|
|
|
|
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
25.115 |
0.000 |
NA |
|
|
|
Proposed Dividend |
52.372 |
0.000 |
NA |
|
|
|
Corporate Divided Tax |
8.699 |
0.000 |
NA |
|
|
BALANCE CARRIED TO
THE B/S |
268.519 |
(147.600) |
489.580 |
|
|
|
|
|
|
|
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|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
BASIC |
14.40 |
(18.27) |
- |
|
|
|
DILLUTTED |
14.32 |
(18.27) |
- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
3434.980 |
4545.200 |
4585.790 |
4553.990 |
|
Total Expenditure |
3184.600 |
4163.370 |
4070.660 |
4180.230 |
|
PBIDT (Excl OI) |
250.380 |
381.830 |
515.130 |
373.760 |
|
Other Income |
0.000 |
0.000 |
21.660 |
34.220 |
|
Operating Profit |
250.380 |
381.830 |
536.790 |
407.980 |
|
Interest |
33.140 |
40.020 |
24.782 |
31.310 |
|
Exceptional Items |
0.510 |
0.000 |
0.0000 |
0.000 |
|
PBDT |
217.750 |
341.820 |
512.010 |
376.680 |
|
Depreciation |
63.850 |
72.860 |
87.980 |
85.300 |
|
Profit Before Tax |
153.900 |
268.960 |
424.030 |
291.380 |
|
Tax |
53.700 |
95.200 |
145.400 |
92.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
100.200 |
173.750 |
278.630 |
199.180 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
100.200 |
173.750 |
278.630 |
199.180 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.55
|
(5.01) |
0.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.67
|
(5.10) |
1.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.84
|
(14.36) |
3.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
(0.28) |
4.87 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.52
|
2.03 |
1.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.32 |
1.70 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry creditors |
- |
- |
NA |
|
Total outstanding dues of Micro
enterprises and Small enterprises |
- |
- |
NA |
|
Total Outstanding
Dues of creditors other than Micro enterprises and Small enterprises |
2608.210 |
2553.841 |
NA |
HISTORY
An Indian retail sector major Shoppers Stop Limited (SS)
opened its door in the year 1991, the foundation was made by K Raheja Corporation
and it was incorporated on 16th June 1997 as a private limited company. It
started operations with the first store in suburban Mumbai and is now a
multi-channel retailer with 24 large format department stores and online
presence. From its inception, Subject has progressed from being a single brand
shop to becoming a Fashion and Lifestyle store for the family. Today, Subject
is a household name, known for its superior quality products, services and
above all, for providing a complete shopping experience. It provides retail
range of branded and own label apparel, footwear, perfumes, cosmetics,
jewellery, leather products and accessories, home products, books, music and
toys, operates in the cities of Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad,
Pune, Jaipur and Gurgaon. The first store was opened in the year 1991 at
Andheri, a suburb in Mumbai, only with Menswear and the Ladieswear was
introduced in the year 1992. After a year, the company added Children and non
apparels to its list in 1993. Loyalty Program titled First Citizen was launched
by SS in the year 1994 and in 1995; the company had opened the second store in
Performance Review
The Company has
opened four departmental stores i.e. one at Bengaluru, two at
The revenue is
Rs.14118.125 millions (previous year Rs.12710.820 millions), registering a
growth of 11.07% y-o-y basis. The net Profit achieved was Rs.502.350 millions
(previous year net loss of Rs.637.180 millions).
Awards and
Recognition
The Company has
been conferred inter-alia with the following awards and recognitions during the
year :
• Best Distribution
Centre Management System at Network Computing EDGE and PC Quest
• Best Visual
Merchandising (Store Launch Category) at VMRD Retail Design Award - 2009.
• Most Admired
Retailer of the Year- Consumer Relations at IRF 2009.
• Customer and
Brand Loyalty in the Retail Sector at Loyalty
• Most Admired
Large Format National Fashion Retailer – Outstanding Achievement in Consumer
Recognition and Loyalty at the Images Fashion Forum.
Finance
The Company continues
with various initiatives for bringing down the cost of borrowings which
includes application of short term instruments so as to have increase in cash
flows.
The Company had
obtained observations from Securities and Exchange Board of India in respect of
its Right Issue of Rs.5000 millions (subsequently reduced to Rs.3000 millions).
The validity of the said observations had expired and accordingly the Right
Issue has been dropped.
Indian Retail –
The Story So Far
The Indian retail market
– the fifth-largest retail destination in the world – was ranked the most
attractive emerging market for investment in the retail sector in management
consultancy firm A.T. Kearney’s eighth annual Global Retail Development Index
(GRDI) in 2009. The modern retail industry today stands at a size of US$ 25 bn.
The attractiveness quotient of
The availability
of quality real estate for modern retail has undergone a sea change. In 1999,
Modern Retail
Today
The modern retail
sector, which currently accounts for around 5 per cent of the Indian retail
market, is all set to witness maximum number of large format malls and branded
retail stores in
Further, this
sector is expected to invest around US$ 503.2 million in retail technology
service solutions in the current financial year. This could go further up to
US$ 1.26 billion in the next four to five years, at a CAGR of 40 per cent.
Moreover, many new international apparel brands are preparing to open outlets
in
From mandis to
malls, Indian retailing has come a long way. The transformation of Indian
retailing is to be noticed, especially with the Indian economy playing a
crucial role globally. Differentiation, branding, compelling customer
experience, exploring commoditization, share of purchasing power, and continuous
innovation has now become the key retail strategies which the modern retail
players are focusing on. Out of the Indian GDP of about US$1036 bn in 2007,
retail was about US$295 bn. Some key trends have now emerged in the Indian
retail industry in real estate (rental partnerships, revenue share model,
rental holidays for property delays), in innovation of retail formats and
consolidation and collaboration between competing players to synergise costs
and scale.
The slowdown in
the past year and a half has taken a certain toll on the modern retail in
A study has
pointed out that organised retail penetration, which was expected to touch 16%
by 2012 from the current 5 %, is likely to reach only around 10.4%. However, along
with the slowdown came lessons for the modern retail players. Cost control,
focus on profitability and sustainable growth rather than exponential growth,
have become the new mantras in the industry which augur very well for its
future. Modern retailers have taken strategic measures like store
rationalisation, changes in supply chain, consolidation of operations and
improvement in IT infrastructure. These will be beneficial in the long-run. In
the current scenario, Indian retailers are also looking for opportunities to
partner with foreign players as it could bring in the much needed capital and
expertise.
The next big wave
is expected to be internet retailing, already an accepted mode of shopping in
the more mature western markets. The benefits of internet retailing are
unanimously accepted and acknowledged by most manufacturers, retailers and
consumers alike. From manufacturers and retailers’ perspective, internet
retailing offers benefits in the form of cost-effectiveness, profitability and
easy accessibility and can be utilized across diverse products and services in
grocery as well as non-grocery items.
Internet retailing
allows greater access to products, enabling second tier cities and suburbs to
acquire a wider variety of goods. At the same time, the internet allows
consumers to compare and contrast price points and product benefits and thus make informed
decisions on purchases. While internet surfing, emailing and other web-enabled
services gained vast popularity, internet retailing and actual purchases are
currently confined to a very niche consumer base. Unlike other developed
countries, Indians are not overly enthusiastic about non-store retailing.
Indian consumers’ prefer to touch and feel items before making their purchasing
decisions and prefer to go to a physical store instead. Also the products are
not standardized and there could be tremendous amount of variability in
products, sizes etc.
This has proved to
be the key challenge for internet retailing and it therefore enjoyed only a restricted
appeal for Indian consumers.
Besides pure play
internet retailers, modern retailers in
Modern Retail
Growth Outlook
After the
turbulence of 08-09, the modern retail industry has bounced back in 09-10 on
the back of improved customer sentiment and astute cost management.
Strong underlying
economic growth, population expansion, the increasing wealth of individuals and
the rapid construction of organized retail infrastructure are key factors
behind the forecast explosive growth in
The growth in the
overall retail market is expected to be driven, largely by the explosion in the
modern retail market. According to Investment Commission of India (ICI) data,
this segment accounted for US$12.10 bn of sales in 2006, 4.6% of the total
retail segment. As per study by Business Monitor International Ltd., Modern
retail sales will reach US$99.09 bn by 2014, 13.1% of the total retail sales in
the country. Retail sales of Asian countries in 2009 were an estimated US$2.29
trn.
The key Growth
drivers of modern retail in
• Economic growth:
Though Asia, and consequently
• Population
growth:
• Urbanisation:
Economic growth has fuelled urbanisation region-wide as rural dwellers have
moved to the city in search of higher paid employment. This has been a major
fillip for the urban-centric modern retail sector, dramatically lifting its
potential audience size. Such favourable geographic demographics have led urban
real estate prices to soar but the benefits of a captive, high-spending urban
audience have outweighed the downsides for now.
• Westernisation:
Increased exposure to Western consumption habits has fuelled consumerism not
only in
• Industry investment:
With modern retail model intact and the potential for serious players clearly
being beyond doubt, modern retailers in
Strengths:
• First Citizens:
Their First Citizens Club has continued to be the main stay of their business.
With a total membership exceeding 1.6 million, the company strongly believes
that its loyalty program is not only a source of substantial competitive
advantage, but is also a very strong strategic tool. The company believes that
its First Citizens will continue to drive its growth by increased average
expenditure in their stores which will be aided by targeted promotional activities.
• Strong focus on
Systems and Processes: We continue to invest in their front and back end
processes and systems. The company believes that continuous investment in
people, process and technology will drive sustainable and profitable growth for
the company.
• Strong
distribution and logistics network and supply chain: We have created a strong
distribution and logistics network, with their four Distribution Centers
covering more than 400,000 square feet handling over 400,000 SKUs per year, and
working 24x7.
• Enhancing their
Human capital: We periodically assess their Customer Care Associates (CCAs)
across all levels through assessment centers to identify competency gaps and
use development inputs (i.e. training, job rotation etc.) to bridge them. We
benchmark their compensation and benefits through consultants, with the best in
the industry to pay their associates accordingly.
• Strong
understanding of the real estate business: We benefit from their Promoters’
association with the real estate business and their relationships with
developers, which have helped us acquire preferred properties at competitive
rates.
• Shopping
Experience: The Company pioneered the departmental store format in the Indian
market when the Indian consumer was deprived of choice. Customers were drawn by
the shopping experience. This is the differentiation that the Company continues
to bank on. Price is not essentially a differentiator for the Company, shopping
experience is. The Company imparts special training to its employees to ensure
that service is not compromised on.
• Management
Strength and Corporate Governance: The Company has a professional and
well-established management team, headed by Mr. Govind Shrikhande. Furthermore,
the Company’s unwavering focus on good corporate governance has been a beacon
for the industry. Their internal and external auditors are amongst the Big 4
audit firms of the globe. The Board has 5 independent Directors.
• Strong
bargaining strength: Having been in existence for so many years and due to its
strong brand image, the Company believes that it is well placed in negotiations
/ re-negotiations of property rentals, better commercials terms with
merchandise suppliers etc. The Company has successfully grown gross margins
year on year.
Sales:
Gross Sales both
at chain level and for Like-To-Like stores showed an improvement as compared to
last year. The growth was 10% in gross retail turnover. The sales per sq. ft
have been computed on built-up area.
Private Label and
Private Brands:
The Company aims
to provide a differentiated and unique offering to the customer through its own
private labels as well as through exclusive private brands. The contribution of
private label is at 18.1% of sales as compared to 19.9% last year and private
label sales remained constant. The company has got an exclusive arrangement for
departmental store business with MUSTANG JEANS, a German Brand, for their Men’s
and Women’s Wear. Their Austin Reed U.K exclusive agreement to retail men’s and
women’s wear has posted a healthy growth. As a part of it’s strategy to provide
a wide range of merchandise to customers, the Company aims to fill in the gaps
in the national brand offering through its private labels and exclusive
arrangements with private and international brands.
Average Selling
Price (ASP):
Average Selling
Price is the Gross Retail Sales divided by the number of units sold. Tracking
ASP helps the retailer to align the offering as per the customer segment as
well as improve the productivity of the floor space.
Merchandise
Purchase:
The company’s
ability to present on the shelves correct merchandise assortments in the right
mix, style, colour and fashion is one of its most critical success factors. A
team of Buyers and Merchandisers continuously ensure that the pricing strategy
and value proposition are completely in tune with the customers’ expectations.
We regularly monitor sales trends to optimize inventory levels.
Their well
established systems and processes in Buying and Merchandising and Logistics enables
us to efficiently manage the flow of inventory to stores, provide prompt
replenishments and manage pricing.
The company
believes in a broad distribution of risk with no high dependency on any single
supplier and has a diversified supplier base. Suppliers are selected after
evaluation based on fairly stringent parameters which ensure the quality and
reliability of supply. Alternate distribution channels for inventory have also
been put in place as a contingency, should the need arise.
Supplier Risks:
Their broadly
varied offering necessitates alliances with a large number of suppliers from
various business sectors. In order to mitigate the risk involved, we enter into
arrangements with vendors in various business formats such as Outrights Buy/Sale
or return, Consignment and Concessionaire/Conducting arrangement.
Shrinkage:
Shrinkage in the
retail business is defined as the loss in inventory through a combination of
shop lifting, pilferage, and errors in documentation and transaction processing
that go unnoticed. We have focus on inventory control and have set up a
separate department called profit enhancement, which not only monitors
Shrinkage on a regular basis but also looks at various factors that could lead
to Shrinkage at stores and distribution centers. The profit enhancement
department, Store Operations along with the Supply Chain team have worked
together and monitored the Shrinkage level on a month on month basis which has
resulted in the Shrinkage percentage being controlled at 0.40% of the Turnover
and their endeavour will always be to lower this ratio through proper
monitoring and continuously reviewing Inventory management processes and
systems.
Operating Profit:
Operating Profit
(without exceptional items) has increased by 138% to Rs. 11,726 lacs from Rs.
4,924 lacs in the previous year. The Operating Profit Margin has grown to 7.6%
from 3.6% due to improved gross margins, improvement in like to like sales
growth, rationalization of costs, right sizing of some departmental stores / new
business formats.
AS PER WEB DETAILS
PROFILE
With an unparalleled assortment of the leading international and national brands in clothing for men, women, and kids; accessories, fragrances, cosmetics, footwear; home furnishing and decor products, our stores aim to provide shoppers a truly international shopping destination.
Experienced, professional management; supported by world-class systems and
practices; and a talented pool of associates with a shared passion for making
every shopper visit a memorable one, has helped Shoppers Stop to grow from a
single store in 1991 to the largest chain of Department Stores in
Our unending pursuit to benchmark ourselves with the best in the world is
testified by the fact that Shoppers Stop is the only Indian member of the
"Intercontinental Group of Departmental Stores", which has the likes
of Selfridges (United Kingdom), Karstadt (Germany), Marks and Spencer (UK),
Matahari (Indonesia), Myers Grace Bros. (Australia) and Rustan's (Philippines)
among its members.
At Shoppers Stop we believe in a world of limitless possibilities. We always
set benchmarks, cross limits, achieve the impossible and celebrate our
successes. Innovation being our key driver, we have adopted a new philosophy of
"Start Something New" to give retail a new dimension. We endeavor to
Start Something New in performance. Start Something New in products. Start
Something New in customer service. Start Something New in Life.
Fixed assets
· Leasehold Improvements
· Air Conditioning and other equipment
· Computer
· Vehicles
· Furniture , Fixture and other fittings
· Trademarks and Patents
· 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.44.57 |
|
|
1 |
Rs.73.58 |
|
Euro |
1 |
Rs.66.23 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.