MIRA INFORM REPORT

Report Date :

05.04.2012

IDENTIFICATION DETAILS

Name :	NEXT RETAIL INDIA LIMITED (W.e.f. 2007)
Formerly Known As :	E MART INDIA LIMITED
Registered Office :	Auto Cars Compound, Adalat Road, Aurangabad-431005, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.12.2003
Com. Reg. No.:	11-143371
Capital Investment / Paid-up Capital :	Rs.1112.000 Millions
CIN No.: [Company Identification No.]	U51395MH2003PLC143371
TAN No.: [Tax Deduction & Collection Account No.]	NSKE00404F
PAN No.: [Permanent Account No.]	AABCE3142P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distributors of Electronics and Electrical Appliances.
No. of Employees :	1200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 6400000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a part of videocon group. It is an established electronic retail chain, having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Management Non Co-operative.

Tel No.: 91-22-42553006/ 42553000

LOCATIONS

Registered Office :	Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	secretarial1@gmail.com nextretailindia@rediffmail.com gopal.somari@next.co.in rkguptacs@yahoo.co.in
Website :	www.next.co.in
Area :	3500 sq ft
Location :	Owned
Corporate Office/ Work Office :	1^st Floor, Shiv Ashish, Behind Lathia Rubber, Andheri Kurla Road, Sakinaka, Andheri (East), Mumbai – 400072, Maharashtra, India.
Tel. No.:	91-22-66897500
Fax No.:	91-22-28598484
E-Mail :	rakesh-kogta@next.co.in
Area :	25000 sq ft
Location :	Owned
Mumbai Head Office 1 :	Techweb Centre, Ground Floor, Next to Raigad Military School, New Link Road, Beharam Bagh, Oshiwara, Jogeshwari (West), Mumbai-400102, Maharashtra, India.
Tel No.:	91-22-42553000
Gurgaon Head Office 2 :	Plot No. 296, 7^th Floor, Udyog Vihar, Phase – II, Gurgaoan – 122015, Haryana, India.
Tel No.:	91-124-3301700
Branch Office :	Located At: North and East India · Gurgaon · Lucknow · Ghaziabad · Chandigarh · Jaipur · Kolkata Central India · Ranchi · Raipur · Indore · Nagpur West India · Mumbai · Pune · Nasik · Aurangabad · Surat · Ahmedabad South India · Bangalore · Hyderabad · Vijayawada · Tirupati · Calicut · Cochin · Chennai · Madurai

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Venugopal Nandlal Dhoot
Designation :	Director
Address :	90, Nepan Sea Road, Manav Mandir, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	30.09.1951
Date of Appointment :	20.12.2006
DIN :	00092450
Name :	Mr. Krishnamahari Soundrarajan Raman
Designation :	Director
Address :	67, Mysore Colony, RCF P. O., Chembur, Mumbai – 400074, Maharashtra, India
Date of Birth/Age :	17.07.1947
Date of Appointment :	06.11.2004
DIN :	00096768
Name :	Mr. NaveenKumar Mandhana
Designation :	Director
Address :	907-908/A, Akruti Nova, Saiwadi, Opposite Teli Galli Andheri (East), Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	18.09.1956
Date of Appointment :	20.12.2006
DIN :	01222013
Name :	Mr. Suresh Madhava Hegde
Designation :	Director
Address :	51, Plot No.C1-C2, Dream Queen, S V P Road, Santacruz (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	19.03.1958
Date of Appointment :	01.01.2008
DIN :	01321882
Name :	Mr. Subramanian Padmanabhan
Designation :	Director
Address :	30, Vishrambagh Society, Senapati Bapat Road, Pune – 411016, Masharashtra, India
Date of Birth/Age :	01.09.1939
Date of Appointment :	09.12.2007
DIN :	00001207
Name :	Mrs. Radhika Saurabh Dhoot
Designation :	Additional Director
Address :	House No.61, Sector 5, Chandigarh – 160005, India
Date of Birth/Age :	27.01.1984
Date of Appointment :	06.01.2012
DIN :	00007727

KEY EXECUTIVES

Name :	Mr. Martin Michelle
Designation :	Secretary
Address :	17, Jai Vishwa Bharati Colony, Aurangabad - 431005, Maharashtra, India
Date of Birth/Age :	19.07.1988
Date of Appointment :	06.09.2010
Pan No.:	BCVPM9930K
Name :	Mr. Sunil Mehta
Designation :	Chief Executive Officer
Qualification :	PGDM
Experience :	31 years
Date of Appointment :	01.04.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Platinum Appliances Private Limited (Formerly: Dhoot Brothers Investment Company Private Limited), India	36000
Synergy Appliances Private Limited (Formerly: R. N. Dhoot Investment Company Private Limited), India	36000
Dome-bell Electronics India Private Limited, India	15036000
Videocon Industries Limited, A India	21036000
Greenfield Appliances Private Limited (Formerly: Keshar Dhoot Investment Company Private Limited), India	36000
Shree Dhoot Trading and Agencies Limited, India	15010000
Solitaire Appliances Private Limited (Formerly: V. N. Dhoot Investment Company Private Limited), India	10000
Force Appliances Private Limited (Formerly:Videocon Exports Private Limited), India	15000000
Applicomp (India) Limited, India	15000000
Electroparts (India) Private Limited, India	10000000
TekCare India Private Limited (Formerly: Macotax Consultants Private Limited), India	5000000
Waluj Components Private Limited, India	5000000
Anirudha V. Dhoot	2000000
Saurabh P. Dhoot	2000000
Venugopal N. Dhoot	2000000
Pradipkumar N. Dhoot	2000000
Rajkumar N. Dhoot	2000000
Total	111200000

(AS ON 30.09.2010)

Equity Shares Break – up

Category	Percentage
Bodies Corporate (not mentioned above)	91.00
Directors or relatives of directors	9.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Distributors of Electronics and Electrical Appliances.
Products :	· Electronics · Home Appliances

GENERAL INFORMATION

No. of Employees :

1200 [Approximately]

Bankers :

· IDBI Bank,

IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India.

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	3040.525	2348.852
Loans taken for fixed assets secured	0.000	0.215
Total	3040.525	2349.067
NOTE: Working capital loan from banks and financial institutions are secured by hypothecation of stocks of packing materials, finished goods, stores, book debts and all other current assets of the Company, including stock-in-transit, on pari passu basis. These are further secured by second charge over the fixed assets of the Company ranking pari passu.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks unsecured	3538.675	999.990
Total	3538.675	999.990

Banking Relations :	--
Financial Institute :	· IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	KSS and Company Chartered Accountant
Address :	3801, Barde Lane, Navi Peth, Ahmedabad – 414001, Maharashtra, India
PAN No.:	AAIFK3397A
Subsidiary :	· Planet M Retails Limited (U70102MH2007PTC167606)

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- each	Rs.1250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
111200000	Equity Shares	Rs.10/- each	Rs.1112.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1112.000	1112.000	1002.000
2] Share Application Money		0.000	0.000	1000.000
3] Reserves & Surplus		494.825	477.084	13.874
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1606.825	1589.084	2015.874
LOAN FUNDS
1] Secured Loans		3040.525	2349.067	2300.646
2] Unsecured Loans		3538.675	999.990	997.851
TOTAL BORROWING		6579.200	3349.057	3298.497
DEFERRED TAX LIABILITIES		20.481	9.652	12.718
TOTAL		8206.506	4947.793	5327.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		419.447	388.056	328.793
Capital work-in-progress		82.272	82.342	77.284
INVESTMENT		2.090	11.000	11.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3939.265	3290.583	2969.982
	Sundry Debtors	1709.101	1137.888	901.904
	Cash & Bank Balances	1570.779	180.266	266.953
	Other Current Assets	152.662	130.430	159.175
	Loans & Advances	1792.508	858.790	1998.882
Total Current Assets		9164.315	5597.957	6296.896
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1149.169	849.408	1238.906
	Other Current Liabilities	305.805	277.251	144.668
	Provisions	6.644	4.903	3.310
Total Current Liabilities		1461.618	1131.562	1386.884
Net Current Assets		7702.697	4466.395	4910.012
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8206.506	4947.793	5327.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	12532.960	10925.823	8270.988
		Other Income	58.783	14.267	157.959
		TOTAL (A)	12591.743	10940.090	8428.947
Less	EXPENSES
		Cost of goods sold	9956.749	9392.457	6965.676
		Salaries wages and employee’s benefits Expenses	343.318	280.864	284.168
		Operating and other Expenses	1591.831	855.146	878.651
		TOTAL (B)	11891.898	10528.467	8128.495
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		699.845	411.623	300.452
Less	FINANCIAL EXPENSES (D)		628.581	350.572	248.998
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		71.264	61.051	51.454
Less/ Add	DEPRECIATION/ AMORTISATION (F)		40.910	41.004	31.158
	PROFIT BEFORE TAX (E-F) (G)		30.354	20.047	20.296
Less	TAX (H)		12.613	(3.163)	18.734
	PROFIT AFTER TAX (G-H) (I)		17.741	23.210	1.562
Add	[Short] / Excess provision of income tax / fringe benefit tax for earlier years written back		--	--	0.094
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		37.084	13.874	12.218
	BALANCE CARRIED TO THE B/S		54.825	37.084	13.874
	Earnings Per Share (Rs.)		0.16	0.22	0.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.14	0.21	0.02
Net Profit Margin (PBT/Sales)	(%)	0.24	0.18	0.24
Return on Total Assets (PBT/Total Assets}	(%)	0.32	0.33	0.31
Return on Investment (ROI) (PBT/Networth)		0.02	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		5.00	2.82	2.32
Current Ratio (Current Asset/Current Liability)		6.27	4.95	4.54

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors due small micro enterprises	0.000	0.000	0.000
- Creditors due others	1149.169	849.408	1238.906
Total	1149.169	849.408	1238.906

OPERATIONS:

The Company has earned a total income of Rs.12,591.74 million as against Rs.10,940.09 million for the previous year representing an increase of 15.10% as compared to the previous year. Total Expenditure amounted to Rs.12,561.38 million as against Rs.10,920.04 million and the Net Profit after Tax amounted to Rs.18.04 million as against Rs.23.11 million for the previous year.

The Company has made a steady growth in the field of trading of Electrical and Electronic Appliances and t here has been a considerable increase in the number of retail outlets of the Company throughout India.

During the year, M/s. Planet ‘M’ Retail Limited ceased to be the subsidiary of the Company.

Bankers Charges Report as per Registry

Corporate identity number of the company	U51395MH2003PLC143371
Name of the company	NEXT RETAIL INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Auto Cars Compoundadalat Road, Aurangabad- 431005, Maharashtra, India nextretailindia@rediffmail.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	IDBI Bank Limited IDBI Towerwtc Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India. Email: ya.mankad@idbi.co.in CIN No.: L65190MH2004GOI148838
Nature of instrument creating charge	Deed of Hypothecation dated 18.02.2012 executed by Next Retail India Limited (the Company) in favour of IDBI Bank Limited (the Bank).
Date of instrument Creating the charge	18/02/2012
Amount secured by the charge	Rs.30250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest – Floating rate of interest equivalent to IDBI Bank Base Rate Plus a Spread of 375 bps (currently equivalent to 14.50% p.a.). Terms of Repayment – 12 months from the date of first disbursement. Extent and Operation of the charge Financial Assistance together with all interest at the agreed rates, liquidated damages, premia on prepayment or on redemption, costs, expenses and other monies are secured by Subservient Charge by way of hypothecation of the Companies entire movable properties and all the current assets, including book debts, both present and future, Others – Other terms and conditions as may be agreed to between the Company and the Bank from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Subservient Charge by way of hypothecation of the Companys movable properties, including plant and machinery, machinery spares, tools and accessories, furniture & fixtures, vehicles and all the current assets, both present and future, including but not limited to book debts, receivables, stock of raw materials, consumable stores, etc. both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of financial assistance be brought into or upon or be stored or be in or about all the Companies offices, factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the course of transit or on high seas or on order or delivery. (Hereinafter referred to as Hypothecated Assets). The Hypothecated Assets are hereby hypothecated/ charged/ assigned for securing the Interim Facility together with all interest at the agreed rates, liquidated damages, premia on prepayment or on redemption, costs, expenses and other monies whatsoever stipulated in the Interim Facility Agreement.

FIXED ASSETS:

· Building

· Plant and Machinery

· Office Equipment

· Computer

· Furniture and Fixture

· Vehicle

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		32

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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.