MIRA INFORM REPORT

 

 

Report Date :

28.06.2012

 

IDENTIFICATION DETAILS

 

Name :

DIESEL FASHION INDIA RELIANCE PRIVATE LIMITED (w.e.f. 26.11.2008)

 

 

Formerly Known As :

DIESEL FASHION INDIA ARVIND PRIVATE LIMITED

 

 

Registered Office :

1st Floor, High Street, Shrimali Society, Near Navrangpura Railway Crossing, Navrangpura, Ahmedabad – 380 009, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

30.05.2007

 

 

Com. Reg. No.:

04-050985

 

 

Capital Investment / Paid-up Capital :

Rs.325.000 Millions

 

 

CIN No.:

[Company Identification No.]

U18101GJ2007PTC050985

 

 

PAN No.:

[Permanent Account No.]

AACCD6235H

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The company is mainly engaged in ‘Organised Retail’.

 

 

No. of Employees :

Approximately 14 (In office)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 1400000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between Reliance Group and Diesel of Italy. It is a company having moderate track record. There appears some accumulated losses in the of the company which is increasing over years.

 

The company can be considered for business dealings with great 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.

 

 

LOCATIONS

 

Registered Office :

1st Floor, High Street, Shrimali Society, Near Navrangpura Railway Crossing, Navrangpura, Ahmedabad – 380 009, Gujarat, India

Tel. No.:

91-79-40072457

Fax No.:

91-79-40072447

E-Mail :

sridhar.kothandaraman@ril.com

ashish.patil@ril.com

hetal.mehta@ril.com

akanksha.mta@ril.com

 

 

Corporate Office 1 :

Reliance Corporate Park, Gate A, Thane – Belapur Road, Ghansoli, Maharashtra, India 

Tel. No.:

91-22-44770000

Fax No.:

91-22-44771882

 

 

Corporate Office 2 :

5th Floor, Court House, LT Marse, Dhobitalao, Mumbai, Maharashtra, India 

Tel. No.:

91-22-67673851

Fax No.:

91-22-67673850

 

 

Stores :

Located at:

 

·         Mumbai

·         Bangalore

·         Delhi

·         Hyderabad

·         Chennai

·         Ludhiana

 

 

DIRECTORS

 

(AS ON 29.09.2011)

 

Name :

Mr. Kiran Mathew Thomas

Designation :

Director

Address :

77-A, Nandanvan CHS, Sector 17, Nerul, Navi Mumbai, Thane – 400 706, Maharashtra, Idnai

Date of Birth/Age :

12.09.1972

Date of Appointment :

05.12.2008

DIN No.:

02242745

 

 

Name :

Mr. Darshan Rasiklal Mehta

Designation :

Director

Address :

32, Mayflower, Carmichael Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

31.07.1961

Date of Appointment :

05.12.2008

DIN No.:

00103155

 

 

Name :

Flavio Costa

Designation :

Director

Address :

Grebberstraat 17, Haarlem Netherlands 2021ZA

Date of Birth/Age :

08.11.1964

Date of Appointment :

27.09.2010

DIN No.:

02796922

 

 

Name :

Antonio Sperati Ruffoni

Designation :

Director

Address :

A Rosmini 2, Padova PD 35128

Date of Birth/Age :

20.02.1954

Date of Appointment :

27.09.2010

DIN No.:

02800019

 

 

Name :

Marina Giovanni Tosin

Designation :

Director

Address :

Strada Delle Fornaci 28, Bassano Del Grappa 36061

Date of Birth/Age :

09.02.1959

Date of Appointment :

27.09.2010

DIN No.:

02806025

 

 

Name :

Mr. Jagdish Gajanand Dalal

Designation :

Director

Address :

5-B, Malay Society, Opposite Sumel Flats, Nr. Manekbaug Hall, Ambawadi, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

04.06.1961

DIN No.:

00009785

 

 

Name :

Ramnik Vasrambhai Bhimani

Designation :

Director

Address :

A/2/11, Soham Park Society, Near Arvindo Society, B/h. Vastrapur Village, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

01.06.1962

DIN No.:

00201475

 

 

KEY EXECUTIVES

 

Name :

Mr. Hitesh Kumar Jain

Designation :

Secretary

Address :

Flat No.702, Building No.9, Balaji Garden, Sector 11, Koparkhairane, Navi Mumbai, Thane – 400 709, Maharashtra, India

Date of Birth/Age :

29.04.1974

Date of Appointment :

29.03.2010

PAN No.:

AEBPJ3853K

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 29.09.2011)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Reliance Brands Limited, India

 

22050000

Diesel International B.V., The Netherlands

 

22950000

 

 

 

Total

 

 

45000000

 

AS ON 30.03.2012

 

Names of Allottees

 

 

No. of Shares

Diesel S.p.A., Italy 

 

5100000

Reliance Brands Limited, India

 

4900000

 

 

 

Total

 

 

10000000

 

 

(AS ON 30.09.2011)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

51.00

Bodies corporate

 

49.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company is mainly engaged in ‘Organised Retail’.

 

 

Brand Names :

“DIESEL”

 

 

GENERAL INFORMATION

 

No. of Employees :

Approximately 14 (In office)

 

 

Bankers :

·         HDFC Bank Limited,

Fort Branch, Mumbai, Maharashtra, India 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. V. Ghatalia and Associates

Chartered Accountants

Address :

Jalan Mills Compound, 95, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AACFS6921Q

 

 

 

Holding Company :

·         Diesel International B.V. The Netherlands

 

 

Ultimate Holding Company:

·         Diesel S.p.A.

 

 

Joint Venture :

·         Diesel International B.V.

·         Reliance Brands Limited

 

 

Subsidiary Company of Diesel S.p.A.:

·         Diesel Props SRL

 

 

Other Related Parties :

·         Reliance Brands Limited

 

 

CAPITAL STRUCTURE

 

(AFTER 29.09.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

60000000

Equity Shares

Rs.10/- each

Rs.600.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55000000

Equity Shares

Rs.10/- each

Rs.550.000 Millions

 

 

 

 

 

 

(AS ON 29.09.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs.500.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

45000000

Equity Shares

Rs.10/- each

Rs.450.000 millions

 

 

 

 

 

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs.500.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

32500000

Equity Shares

Rs.10/- each

Rs.325.000 millions

 

 

 

 

 

NOTE:

 

Out of the above Equity Shares, 16,575,000 (Previous Year 10,200,000) Equity Shares of Rs.10/- each are held by Diesel International B.V., the Holding Company / Joint Venture.

 

 

 

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

325.000

200.000

1.020

2] Share Application Money

125.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(97.307)

(24.533)

(0.003)

NETWORTH

352.693

175.467

1.017

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.500

TOTAL BORROWING

0.000

0.000

0.500

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

352.693

175.467

1.517

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

218.408

7.605

0.000

Capital work-in-progress

4.129

76.082

10.206

 

 

 

 

INVESTMENT

33.357

20.731

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

121.412
39.575

0.000

 

Sundry Debtors

0.480
0.903

0.000

 

Cash & Bank Balances

9.880
12.554

0.767

 

Other Current Assets

0.000
0.000

0.000

 

Loans & Advances

68.733
68.970

0.029

Total Current Assets

200.505
122.002

0.796

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

104.334
52.129

9.490

 

Other Current Liabilities

0.000
0.000

0.000

 

Provisions

0.274
0.027

0.000

Total Current Liabilities

104.608
52.156

9.490

Net Current Assets

95.897
69.846

(8.694)

 

 

 

 

MISCELLANEOUS EXPENSES

0.902

1.203

0.005

 

 

 

 

TOTAL

352.693

175.467

1.517

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

248.186

1.334

NA

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

(54.100)

(24.510)

(0.002)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.015

0.011

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

(54.115)

(24.521)

(0.002)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

18.659

0.009

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(72.774)

(24.530)

(0.002)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(72.774)

(24.530)

(0.002)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(24.533)

(0.003)

(0.002)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(97.307)

(24.533)

(0.003)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Traded Goods

NA

30.555

0.000

 

 

Capital Goods

NA

16.658

0.000

 

TOTAL IMPORTS

NA

47.213

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

(2.73)

(4.04)

(0.01)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

NA
NA
NA

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

(29.32)
(1838.83)
NA

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(17.37)
(18.93)
(0.25)

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.21)
(0.14)
0.00

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.30
0.30

9.82

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.92
2.34

0.08

 


 

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 (A) 

--

--

--

- Creditors Due Others (B)

104.334

52.129

9.490

 

 

 

 

Total

 

104.334

52.129

9.490

 

A] The Company has not received the required information from Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been made.

 

B] Includes payable, to Diesel International B.V., the Holding Company/ Joint Venture Rs.0.046 Million (Previous Year Rs.0.046 Million) and for Capital expenditure Rs.3 66 47 025 (Previous year Rs. 1407030)

 

 

Check list by info Agents

Available in Report

(Yes/ No)

 

 

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the Firm

Yes

Premises details

No

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

Yes

No. of Employees

Yes

Name of Person Contacted

No

Designation of Contact person

No

Turnover of Firm for last two years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

-----

Estimation for coming financial year

No

Capital in the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payments Terms

No

Export/ Imports Details (If applicable)

No

Market Information

-----

Litigations that the firm/ Promoters Involved in

-----

Banking details

Yes

Banking Facility Details

No

Conduct of the Banking Account

-----

Buyer visit details

-----

Financials, if provided

Yes

Incorporation details is applicable

Yes

Last Accounts filed at ROC

Yes

Major Shareholders, if available

Yes

 

 

NOTE:

 

The Registered office of the company has been shifted from Asha Arcade, Opposite Gandhigram Railway station, Ellisbridge, Ahmedabad – 380006, Gujarat, India, to the present address w.e.f. 20.05.2011.

 

 

OPERATIONAL AND FINANCIAL REVIEW:

 

During the year the Company has made good progress in its endeavour to spawn a genre of fashion that is alternate to established luxuries. The Company expanded its business by opening 6 more exclusive retail stores in Mumbai, Bangalore, Delhi, Hyderabad, Chennai and Ludhiana. The Company has plans to open 4 more exclusive mono brand stores in Gurgaon, Pune, Delhi and Mumbai in the coming year.

 

The “Be Stupid campaign” launched by the Company during the year was a tremendous success.

 

The Company has incurred a loss of Rs.72.773 Millions for the financial year ended March 31, 2011. With the substantial growth in operations of the Company the Directors are confident of better performance in the coming years.

 

 

FIXED ASSETS:

 

Own Assets:

·         Leasehold Improvements

·         Equipments

·         Furniture and Fixtures

Intangible Assets:

·         Software

 

 

 


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.56.53

UK Pound

1

Rs.88.09

Euro

1

Rs.70.83

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--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

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

 

-

 

 

 

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.