MIRA INFORM REPORT
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Report Date : |
13.04.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
03.09.2007 |
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Com. Reg. No.: |
11-173762 |
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Capital
Investment / Paid-up Capital : |
Rs.1923.246 Millions |
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CIN No.: [Company Identification
No.] |
U52190MH2007PTC173762 |
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PAN No.: [Permanent Account No.] |
AAFCM2868L |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
The Company is primarily in the business of distribution of and retailing
a variety of lifestyle and consumer products through its own branded stores. |
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No. of Employees
: |
Not Divulged by the management |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 2200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a Mahindra group Company having moderate track. There
appears huge accumulated losses recorded by the company. 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.
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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
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Name : |
Mr. Saroj |
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Designation : |
Finance Department |
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Date : |
12.04.2012 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-24905632/ 24935185/ 5186 / 24901441 |
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Fax No.: |
91-22-2490833/ 24951236 |
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E-Mail : |
DIRECTORS
As on 26.08.2011
|
Name : |
Mr. Rajeev Dubey |
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Designation : |
Director |
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Address : |
1701, Mahindra Height, |
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Date of Birth/Age : |
24.06.1964 |
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Date of Appointment : |
03.09.2007 |
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DIN No.: |
00104817 |
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Name : |
Mr. Zhooben Bhiwanduwala |
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Designation : |
Director |
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Address : |
S-13, Cusrow Baugl, Shahid Bhagat Singh Roadl, Colaba, Mumbai-400039, |
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Date of Birth/Age : |
29.09.1961 |
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Date of Appointment : |
21.09.2007 |
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DIN No.: |
00110373 |
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Name : |
Mr. Arvind Kumar Singhal |
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Designation : |
Nominee Director |
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Address : |
3, Padmini Enclave, Hauz Khas, New Delhi-110016, |
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Date of Birth/Age : |
10.08.1958 |
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Date of Appointment : |
17.12.2008 |
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DIN No.: |
00709084 |
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Name : |
Mr. Parag Shah |
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Designation : |
Director |
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Address : |
7, Kailas, |
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Date of Birth/Age : |
29.11.1975 |
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Date of Appointment : |
03.11.2009 |
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DIN No.: |
00374944 |
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Name : |
Mr. Rafique Malik |
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Designation : |
Director |
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Address : |
23/C, 20th Floor, Kanchenjunga 72, |
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Date of Birth/Age : |
30.10.1950 |
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Date of Appointment : |
03.11.2009 |
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DIN No.: |
00521563 |
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Name : |
Mr. Parth Gandhi |
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Designation : |
Director |
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Address : |
G Wing Flat No. 79, Gujarat Society, Nehru road, Near Jaal Hotel, Vile
Parle, Mumbai – 400057, Maharashtra, India
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Date of Birth/Age : |
10.09.1971 |
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Date of Appointment : |
06.08.2010 |
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DIN No.: |
01658253 |
KEY EXECUTIVES
|
Name : |
Mr. Saroj |
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Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 26.08.2011
|
Names of Shareholders |
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No. of Shares |
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Technopak Advisors Private Limited, |
|
7173722 |
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IDBI Trusteeship Services Limited, |
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13000000 |
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Retail Initiative Holdings Limited, |
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187081266 |
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Total |
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207254988 |
As on 24.02.2012
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Names of Allottee |
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No. of Allotted |
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Retail Initiative Holding Limited, |
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30400000 |
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Total |
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30400000 |
As on 27.02.2012
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Names of Allottee |
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No. of Allotted |
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Retail Initiative Holding Limited, |
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26600000 |
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Total |
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26600000 |
As on 09.03.2012
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Names of Allottee |
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No. of Allotted |
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Retail Initiative Holding Limited, |
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19000000 |
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Total |
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19000000 |
As on 26.08.2011
Equity Share Break up (Percentage of Total Equity)
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Category |
Percentage |
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Bodies corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The Company is primarily in the business of distribution of and
retailing a variety of lifestyle and consumer products through its own
branded stores. |
GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the management |
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Bankers : |
Vijaya Bank, Corporate Banking Branch, M-1 Floor, Head
Office, Building, 41/2, M. G. Road., |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B.K. Khare and Company Chartered Accountants |
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Address : |
706/708l, Sharda Chambers, New Marine Lines, Mumbai-400020, |
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Tel. No.: |
91-22-22000607/ 7318/ 6360/ 56315835/ 36 |
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Fax No.: |
91-22-22003476 |
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E-Mail : |
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PAN.: |
AAAFB0265E |
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Holding Company : : |
Retail Initiative Holding Limited (CIN No.: U67110MH2008PLC188837) |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
As on After
26.08.2011
Authorised Capital : Rs.3100.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.3082.550 Millions
As on 26.08.2011
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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210000000 |
Equity Shares |
Rs.10/- each |
Rs.2100.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
207254988 |
Equity Shares |
Rs.10/- each |
Rs.2072.550
Millions |
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As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
210000000 |
Equity Shares |
Rs.10/- each |
Rs.2100.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
192324622 |
Equity Shares |
Rs.10/- each |
Rs.1923.246
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
1923.246 |
953.121 |
500.000 |
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2] Share Application Money |
149.304 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(1521.784) |
(919.659) |
(478.446) |
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NETWORTH |
550.766 |
33.462 |
21.555 |
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LOAN FUNDS |
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1] Secured Loans |
52.781 |
110.702 |
0.000 |
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2] Unsecured Loans |
0.000 |
110.000 |
160.000 |
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TOTAL BORROWING |
52.781 |
220.702 |
160.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
603.547 |
254.164 |
181.555 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
389.891 |
217.497 |
133.120 |
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Capital work-in-progress |
28.331 |
17.861 |
38.924 |
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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 |
250.291
|
76.818 |
54.314 |
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Sundry Debtors |
14.011
|
2.357 |
3.802 |
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Cash & Bank Balances |
2.175
|
1.164 |
12.556 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
189.988
|
86.351 |
91.630 |
|
Total
Current Assets |
456.465
|
166.690 |
162.302 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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Sundry Creditors |
135.376 |
83.082 |
129.325 |
|
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Other Current Liabilities |
131.195
|
62.335 |
21.996 |
|
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Provisions |
4.569
|
2.467 |
1.470 |
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Total
Current Liabilities |
271.140
|
147.884 |
152.791 |
|
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Net Current Assets |
185.325
|
18.806 |
9.511 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
603.547 |
254.164 |
181.555 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
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|
|
|
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|
|
|
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Income |
514.406 |
192.090 |
20.501 |
|
|
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Other Income |
|
2.831 |
3.268 |
|
|
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TOTAL (A) |
514.406 |
194.921 |
23.769 |
|
|
|
|
|
|
|
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Less |
|
|
|
|
|
|
|
|
Cost of Goods Sold |
|
110.590 |
13.910 |
|
|
|
Employee Cost |
1007.990 |
144.520 |
83.304 |
|
|
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Other Expenditure |
|
299.311 |
279.864 |
|
|
|
|
|
0.056 |
0.060 |
|
|
|
TOTAL (B) |
1007.990 |
554.477 |
377.138 |
|
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(493.584) |
(359.556) |
(353.369) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
17.893 |
25.897 |
3.777 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(511.477) |
(385.453) |
(357.146) |
|
|
|
|
|
|
|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
90.061 |
55.760 |
14.497 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(602.087) |
(441.213) |
(371.643) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.037 |
0.000 |
0.956 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(602.124) |
(441.213) |
(372.599) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(919.659) |
(478.446) |
(105.847) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1521.783) |
(919.659) |
(478.446) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(4.24) |
(6.06) |
(9.71 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(58.73)
|
(226.35) |
(1567.58) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
(227.32) |
(1812.80) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(71.14)
|
(114.84) |
(125.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.09)
|
(13.19) |
(17.24) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.59
|
11.02 |
14.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68
|
1.13 |
1.06 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
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3) Constitutions of the firm |
Yes |
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4) Premises details |
No |
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5) Type of Business |
Yes |
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6) Line of Business• |
Yes |
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7) Promoter’s background |
Yes |
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8) No. of employees |
No |
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9) Name of person contacted |
Yes |
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10) Designation of contact person |
Yes |
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11) Turnover of firm for last two years |
Yes |
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12) Profitability for last three years |
yes |
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13) Reasons for variation <> 20% |
-- |
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14) Estimation for coming financial year |
No |
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15) Capital in the business |
Yes |
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16) Details of sister concerns |
Yes |
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17) Major suppliers |
No |
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18) Major customers |
No |
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19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
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21) Market information |
-- |
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22) Litigations that the firm / promoter |
-- |
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23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
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25) Conduct of the banking account |
-- |
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26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
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30) Major Shareholders, if available |
Yes |
DETAILS OF SUNDRY
CREDITORS
Rs.
In Millions
|
Particular |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Creditors due small micro enterprises |
0.979 |
0.991 |
0.000 |
|
Creditors due others |
134.397 |
82.091 |
129.325 |
|
Total |
135.376 |
83.082 |
129.325 |
CONTINGENT
LIABILITIES:
Rs. In Millions
|
Particular |
31.03.2011 |
31.03.2010 |
|
For Bank Guarantees given |
|
|
|
To VAT Authorities |
0.240 |
0.240 |
|
Claims against the Company not acknowledged |
0.000 |
30.000 |
Operations
During the year, the Company increased its retail presence with the opening of 31 new stores making its total store presence in the country to 42 stores in 25 cities across 12 states .As on 31st March, 2011 seven additional stores were underdevelopment – two each in Bangalore and Pune and one each in, Hyderabad, Jaipur and Mysore. In its second full year of operations, the Company has significantly enlarged its footprints, made enhancements in its range and quality of products and maintained its excellent customer service. These continue to be well received by customers and recognized by retail industry peers. During the year, the Company has continued to win prestigious industry recognition and awards. The Company was awarded the Innovative Retail Concept of the Year by the Asian Retail Congress for “Mom’s Lounge”, for its service offering for expecting and young mothers, a special award from Graco for its efforts in promoting the Graco brand in India and penetrating the market in short span and three awards from the Mother and Baby magazine for Best Pregnancy Apparel and Best Nursery Décor (as category winners) and Best Baby Apparel (as category runners-up) for the year 2010.
Industry, Company and
Business Review
The Indian Retail Industry, down in the slump in previous year, has bounced back, albeit with caution, during the year. Commensurate with the sentiment and in line with the Company’s strategy for future, the Company has increased its presence in this period manifold, towards establishing both footprint and scale. The scaling-up has provided the much needed economies of scale in some of the products and categories, while the expansion is also providing greater interest from developers and landlords alike. The improved sales standing in older stores are establishing the long-term growth credentials of the stores, and developers are keen to get the Company’s presence in their esteemed malls. However, the uptick in demand for retail space, coupled with the shortage in the same due to the earlier downturn, has resulted in hardening of rentals. The Company is striving to meet the requirements of good location for its retail stores amidst these challenges and constraints of the economics.
The major additions to store numbers took place in the second half of the year, and most of these stores did not have sufficient time to establish a customer base. Nevertheless, most new stores are showing significant promise in achieving good sales productivities in next two years. All the 42 stores in the year would have a full year of operation in the current year and with the additions planned in current year, the plans are on to enable quicker break-even for all the stores. A majority of the opened stores are in the top 8 cities and more are planned to be added in the same cities to provide better returns on the basis of improved economies of scale on supply chain, advertising and promotions.
The Company recorded revenues of Rs.514.406 Millions as compared to Rs.194.921 Millions registering a growth of 164 % as compared to the previous year. The Company’s loss after tax for the year was however, Rs.602.124 Millions as compared to Rs.441.214 Millions in the previous year.
Bankers Charges Report
as per Registry
|
Corporate
identity number of the company |
U52190MH2007PTC173762 |
|
Name of the
company |
MAHINDRA RETAIL PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
|
|
This form is for |
Creation
of Charge |
|
Type of charge |
Others (Entire
current assets, present and future |
|
Particular of
charge holder |
Vijaya Bank, Corporate Banking Branch, M-1 Floor, Head
Office, Building, 41/2, M. G. Road., |
|
Nature of
instrument creating charge |
Hypothecation Agreement dated 27th July, 2011 for grant of Rs.800.000 Millions as secured loan Agreement for Demand Cash Credit against Hypothecation of stocks and Book debts for grant of Rs.250.000 Millions |
|
Date of
instrument Creating the charge |
22.07.2011 |
|
Amount secured by
the charge |
Rs.1050.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest Secured Loan and Cash credit - Base rate + 2.50% ( floating) i.e 12 % p a payable at monthly rests Terms of Repayment Secured loan (fresh) - repayable in 8 quarterly installments from 30.06.2013. Door to door tenor of the loan is 4 years. Interest to be serviced as and when debited. Cash credit (Hypothecation) - facility for a period of 1 year from the date of sanction. Margin Term loan 25 % Cash credit 15 % Extent and
Operation of the charge Term Loan - Exclusive charge on the entire fixed assets of the company created / proposed to be created out of the term loan Cash Credit Facility - Hypothecation on the entire current assets of the company, present and future. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
Term Loan -
Exclusive charge on the entire fixed assets of the company created / proposed
to be created out of the term loan
availed Cash Credit -
Hypothecation of the entire current assets of the company, both present and future. |
Fixed Assets:
·
Plant and Machinery
·
Computer and Pheripherals
·
Motor Vehicles
·
Office Equipments
·
Furniture and Fixtures
·
Leasehold Improvements
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.51.44 |
|
|
1 |
Rs.81.96 |
|
Euro |
1 |
Rs.67.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--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 |
|
28 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.