MIRA
INFORM REPORT
|
Report Date : |
19.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA BIRLA RETAIL LIMITED (w.e.f. 01.09.2006) |
|
|
|
|
Formerly Known
As : |
PUSHPAK FINANCE AND INVESTMENTS LIMITED |
|
|
|
|
Registered
Office : |
Skyline Icon, 86/92, 5th and 6th Floor, Near
Mittal, Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai –
400059, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
14.07.1988 |
|
|
|
|
Com. Reg. No.: |
11-048117 |
|
|
|
|
Capital
Investment/ Paid-up Capital: |
Rs.1225.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65990MH1988PLC048117 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA28583C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACP2678Q |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Chain of Departmental Stores. |
|
|
|
|
No. of
Employees: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Aditya Birla Group. It is a subsidiary of
‘Kanishtha Finance and Investment Private Limited’. It is an established company
having moderate track record. There appears to be huge accumulated losses
recorded by the company. However, trade relations are reported as fair.
Business is active. Payments are reported to be slow but correct. In view of strong holding, the company can be considered normal for
business dealings with slight caution. Balance Sheet for year 2012 is not available only Profit and Loss
Account is available. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
BBB (Long Term Bank facilities) |
|
Rating Explanation |
Having moderate degree of safety regarding
timely servicing of financial obligation it carry moderate credit risk. |
|
Date |
September 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Skyline Icon, 86/92, 5th and 6th Floor, Near
Mittal, Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai –
400059, Maharashtra, India |
|
Tel. No.: |
91-8652-9055555 |
|
Fax No.: |
91-8652-906200 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 28.09.2012
|
Name : |
Mr. Gopi Krishna Tulsian |
|
Designation : |
Director |
|
Address : |
32 Peacock Palace, |
|
Date of Birth/Age : |
02.02.1937 |
|
Qualification : |
CA |
|
Date of Appointment : |
12.03.2008 |
|
Din No.: |
00017786 |
|
|
|
|
Name : |
Mr. Girish Mohanlal Dave |
|
Designation : |
Director |
|
Address : |
Dave and Girish and Company, Advocates, 1st
Floor, Sethna Building, 55 Maharshi Karve Road, Marine Lines, Mumbai –
400002, Maharashtra, India |
|
Date of Birth/Age : |
12.07.1938 |
|
Qualification : |
LLB |
|
Date of Appointment : |
12.03.2008 |
|
Din No.: |
00036455 |
|
Voter ID No.: |
MT/08/039/0022008 |
|
|
|
|
Name : |
Mr. Kamlesh Shivji Vikamsey |
|
Designation : |
Director |
|
Address : |
194, Kalpataru Habitat, Tower – A, Dr. S S Road, Parel,
Mumbai – 400012, Maharashtra, India |
|
Date of Birth/Age : |
06.12.1960 |
|
Date of Appointment : |
22.04.2008 |
|
Din No.: |
00059620 |
|
|
|
|
Name : |
Mr. Pranab Barua |
|
Designation : |
Director |
|
Address : |
D-1, Cedar Crest, 258, 10th Main, Defence
colony, Indira Nagar, |
|
Date of Birth/Age : |
21.09.1952 |
|
Date of Appointment : |
01.02.2009 |
|
Din No.: |
00230152 |
|
|
|
|
Name : |
Mr. Gianprakash Dharamprakash Gupta |
|
Designation : |
Director |
|
Address : |
101, Kaveri ‘B’ Wing, Neelkanth Valley, Rajawadi, Ghatkopar (East),
Mumbai – 400077, Maharashtra, India |
|
Date of Birth/Age : |
11.01.1941 |
|
Date of Appointment : |
23.09.2011 |
|
Din No.: |
00017639 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 28.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
Kanishtha Finance and Investment Private Limited, |
|
122499930 |
|
G K Tulsian and Kanishtha Finance and Investment Private Limited, |
|
10 |
|
Sushil Ganesham Agarwal and Kanishtha Finance and Investment Private
Limited, |
|
10 |
|
Suresh Pitale and Kanishtha Finance and Investment Private Limited, |
|
10 |
|
Anil Chirania and Kanishtha Finance and Investment Private Limited, |
|
10 |
|
Omprakash Jajodia and Kanishtha Finance and Investment Private
Limited, |
|
10 |
|
Vivek Pendharkar and Kanishtha Finance and Investment Private Limited,
|
|
10 |
|
Nitin Madhura and Kanishtha Finance and Investment Private Limited, |
|
10 |
|
TOTAL |
|
122500000 |
As on 28.09.2012
|
Category |
|
Percentage |
|
Bodies corporate |
|
100.00 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Chain of Departmental Stores. |
||||
|
|
|
||||
|
Product: |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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|
|
|
||||||||||||
|
Bankers : |
·
IDBI Trusteeship Services Limited, Asian
Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400001,
Maharashtra, India ·
The Federal Bank Limited, Corporate Branch, I
Floor, Rajabhadur, Mansion, 32, Bombay Samachar Marg, Fort, Mumbai – 400001,
Maharashtra, India ·
Sydicate Bank Limited, Large Street, Fort, Mumbai
– 400023, ·
Industrial Development Bank of ·
State Bank of India, Corporate Accounts Group –
Mumbai, Neville House, 3rd Floor, J N Heredia Marg, Ballard
Estate, Mumbai – 400001, Maharashtra, India ·
The Ratnakar Bank Limited, Shahupuri,
Kolhapur, Vypari Peth, Kolhapur - 416001, Maharashtra, India ·
Central Bank of India, Corporate Finance
Branch, 1st Floor, MMO Building, Fort, Mumbai - 400023, Maharashtra, India |
||||||||||||
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|
|
||||||||||||
|
Facilities : |
Rs.
In Millions
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, Dr. |
|
Pan No.: |
AADFD2337G |
|
|
|
|
Holding Company : |
·
Kanishtha Finance and Investment Private Limited
CIN No.: U65990MH1988PTC48498 |
|
|
|
|
Subsidiaries : |
·
Trinethra Superretail Private Limited CIN No.:
U52520AP1990PTC011172 ·
H A S Two Holdings Private Limited
(Subsidiary Company of Trinethra Superretail Private Limited ) CIN No.:
U64202KA1999PTC025649 ·
Terrafirma Agroprocessing ( CIN No.:
U15499AP2005PTC047082 ·
Fabmall ( CIN No.:
U18101KA2002PTC031385 |
CAPITAL STRUCTURE
As on 11.07.2011
Authorised Capital : Rs. 3500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.2225.000
Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
122500000 |
Equity Shares |
Rs.10/- each |
Rs.1225.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1225.000 |
1225.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(19747.500) |
(15516.500) |
|
|
NETWORTH |
|
(18522.500) |
(14291.500) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
6649.600 |
9316.400 |
|
|
2] Unsecured Loans |
|
24484.000 |
18799.900 |
|
|
TOTAL BORROWING |
|
31133.600 |
28116.300 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
Equity Share Warrants |
|
945.500 |
871.100 |
|
|
|
|
|
|
|
|
TOTAL |
|
13556.600 |
14695.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
1060.000 |
1429.300 |
|
|
Capital work-in-progress |
|
238.800 |
223.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
10580.100 |
12425.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
848.300
|
628.700
|
|
|
Sundry Debtors |
|
93.100
|
85.200
|
|
|
Cash & Bank Balances |
|
1238.500
|
359.700
|
|
|
Other Current Assets |
|
32.700
|
28.500
|
|
|
Loans & Advances |
|
1433.500
|
1253.900
|
|
Total
Current Assets |
|
3646.100
|
2356.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
656.800
|
542.100
|
|
|
Other Current Liabilities |
|
1269.600
|
1158.300
|
|
|
Provisions |
|
42.000
|
37.200
|
|
Total
Current Liabilities |
|
1968.400
|
1737.600 |
|
|
Net Current Assets |
|
1677.700
|
618.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
13556.600 |
14695.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10177.300 |
7311.200 |
6049.100 |
|
|
|
Other Income |
114.200 |
134.200 |
324.500 |
|
|
|
TOTAL (A) |
10291.500 |
7445.400 |
6373.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
8705.400 |
6414.700 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(152.700) |
(236.300) |
|
|
|
|
Employee benefit expense |
1579.500 |
1406.700 |
|
|
|
|
Amortisation expense |
132.100 |
127.500 |
|
|
|
|
Other expenses |
2945.300 |
2004.800 |
|
|
|
|
TOTAL (B) |
13209.600 |
9717.400 |
9710.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(2918.100) |
(2272.00) |
(3337.200) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2047.700 |
1601.200 |
1568.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(4965.800) |
(3873.200) |
(4905.200) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
384.300 |
357.800 |
506.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(5350.100) |
(4231.000) |
(5411.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(5350.100) |
(4231.000) |
(5411.500) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(19747.500) |
(15516.500) |
(10105.000) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(25097.600) |
(19747.500) |
(15516.500) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
23.800 |
7.500 |
29.000 |
|
|
|
Trade Goods |
66.700 |
81.700 |
30.800 |
|
|
TOTAL IMPORTS |
90.500 |
89.200 |
59.800 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(43.67) |
(34.54) |
(54.05) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(51.99) |
(56.83) |
(84.90)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(52.57) |
(57.87) |
(89.46)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA |
(89.90) |
(142.96)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA |
0.23 |
0.38
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
NA |
(1.68) |
(1.97)
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
NA |
1.85 |
1.36
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
DETAILS OF
UNSECURED LOANS
(Rs. In Millions)
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
|
Debts bonds other instruments unsecured |
17351.800 |
12352.800 |
|
Rupee term loans banks unsecured |
5200.000 |
4000.000 |
|
Working capital loans banks unsecured |
1932.200 |
2447.100 |
|
Total |
24484.000 |
18799.900 |
NOTES:
The registered office of the company has been
shifted from “More Centre”, Sahar Airport Road, Andheri (East), Mumbai – 400099, Maharashtra,
India to Present Address w.e.f 18.04.2011
BUSINESS
PERFORMANCE:
No of Hypermarkets launched: 3; Total No of Supermarkets: 143;
Hypermarkets: 8 covering 8.35 lacs sq. feet of retail space. No of Supermarkets
by its subsidairy co, Trinethra Superretail Private Limited 406; Hypermarket: 1 covering an area of 9.67
lacs sq feet. Cities and States covered across
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate identity
number of the company |
U65990MH1988PLC048117 |
|
Name of the
company |
ADITYA
BIRLA RETAIL LIMITED |
|
Address of the
registered office or of the principal place of business in |
Skyline Icon, 86/92, 5th and 6th Floor, Near
Mittal, Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai –
400059, Maharashtra, India |
|
This form is for |
Creation of charge |
|
Type of charge |
Book debts Movable property (not being pledge) Floating Charge Others (First pari passu charge on entire current assets) |
|
Particular of
charge holder |
The Ratnakar Bank Limited, Shahupuri, Kolhapur, Vypari Peth, Kolhapur –
416001, Maharashtra, India E-mail Id : cdzirkande@ratnakarbank.in |
|
Nature of
instrument creating charge |
Composite
Deed of Hypothecation Dated 10th December 2012 . |
|
Date of
instrument Creating the charge |
10.12.2012 |
|
Amount secured by
the charge |
Rs.1000.000 Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Base Rate + 1.60% p.a. Present Base Rate is 11.00% p.a. Term
of Payment: Bullet Payment Margin Nil Extent and
operation of the charge First Pari Passu Charge on entire current assets of the
company, Charge on all the present and future book-debts, outstanding, money
receivables, claims, bills hereunder, which are now due or become due in the
course of the business during this credit facility and Second Pari Passu
Charge on all movable fixed assets (tangible and intangible assets) of the
company. |
|
Short particulars
of the property charged (Including location of the property) |
First
Pari Passu Charge on entire current assets of the company. Charge
on all the present and future book-debts, outstanding, money receivables,
claims, bills hereunder, which are now due or become due in the course of the
business during this credit facility. Second
Pari Passu Charge on all movable fixed assets (tangible and intangible
assets) of the company. |
CONTINGENT LIABILITY
a) The Company has given collateral Security of
Rs.300.000 Millions. (Previous year: Rs.550.000 Millions)to Banks for loans
taken by Trinethra Supertetall Private Limited (TSPL) (Subsidiary Company).
(Rs. In Millions)
|
Bank Name |
Nature of Security Provided |
31.03.2012 |
31.03.2011 |
|
Axis Bank Limited |
Letter of Undertaking |
0.000 |
181.100 |
|
HDFC Bank Limited |
Letter of comfort |
40.100 |
42.600 |
Further, the Company has iren an undertaking, not
to dispose of its investment in the Subsidiary during the peudency of the
credit fai1ity.
b) Custom duty against import of capital goods, which may arise if the
obligation for exports is not fulfilled is Rs. 65.600 Millions (Previous year:
Rs.65.600 Millions)
c) Disputed dues towards leased property to the extent of Rs.102.700
Millions (Previous year : Rs. 102.700 Millions)
d) Liabilities towards certain leased properties to the extent of Rs.
12.600 Millions (Previous year : 5.600 Millions)
e) Claims against the company, in respect of certain leased properties
and other not acknowledged as debts (to the extend quantifiable) Rs. 1085.800
Millions (Previous year Rs.3.600 Millions
f) The employee stock option scheme provides that the company will buy-back
the option vested before 30th June, 2012 with existing employees, at
their option at a price to be determined at 25% of the excess of the fair
market value over the exercise price of the options, in case the shares of the
shares of the company are not listed on the stock exchange by 31st
March, 2012. The liability, if any, in respect of the above has not been
determined by the company.
FIXED ASSETS:
·
Leasehold Improvements
·
Furniture and Fixtures
·
Vehicles
·
Plant and Machinery
·
Software
PRESS RELEASE
IN BUSINESS RECAST,
ADITYA BIRLA RETAIL CUTS STORES, JOBS
APRIL 01 2012
Aditya Birla Retail Limited, a unit of the $28 billion (around Rs1.43 trillion) Aditya Birla Group, has shut its small-store food and groceries business in some large cities and exited from Mumbai, as it embarks on a major restructuring after five years of losses.
The retailer, which runs the More shops, has shut about 50 outlets across India and plans to focus only on bigger stores, two company executives said.
“The process of shutting down the stores started in March and about 225 people have been asked to leave. About half of them are trainee customer service executives, the lowest rung of the retail business, and others are from the head office,” one of the two executives said.
The executive declined to be identified as she is still on the payroll of the company and is yet to receive her final payment and relieving orders.
Chief executive officer Pranab Barua said the company has decided to focus on the large-store format and has shut all its small shops in Mumbai, and some in Pune and Delhi.
Barua replaced Thomas Varghese in early March. He was earlier heading Madura Fashion and Lifestyle. Varghese has taken over as head of Jaya Shree Textiles. Both Madura and Jaya Shree are divisions of Aditya Birla Nuvo Limited.
The company website still lists Varghese as chief executive of More and Barua as chief executive of Madura.
Aditya Birla Retail has close to 500 so-called supermarkets and 11 bigger stores.
“We are closing the non-profitable stores—40 to 50—because huge funds are required to run these stores. Besides, the rents in Mumbai are high. We will now focus on large stores, but continue to run supermarkets in the south and markets which are doing well, such as Punjab, Haryana, Uttar Pradesh and Kolkata,” Barua said, adding 15-20% of its supermarkets are not profitable.
The company had secured and unsecured debt of Rs.31133.600 Millions in March 2011, according to its cash flow statement submitted to the registrar of companies. Its stand-alone revenue was Rs.6879.300 Millions and the firm posted a loss of Rs.4231.000 Millions in fiscal 2011, according to its annual report.
“We have 11 large-format stores, including the three we opened in fiscal 2012. Barring these three, all are profitable. We plan to open more such stores in 2012-13,” he said.
Barua confirmed that some employees have been told to go, but said the number was only “100 to 150”.
While the executive quoted earlier in the story said all 28 supermarket stores in Mumbai, seven stores in Delhi, 12 in Pune and four in Punjab have been shut, and eight Pune stores are still operating because inventory has not yet been exhausted, Barua said “only four to five stores” have been closed in Delhi and Pune. “We have closed all 25 supermarket stores in Mumbai,” he said.
The More brand operates two categories of stores—supermarket, a small-store format such as the neighbourhood groceries store (spanning 2,000 sq. ft), and hypermarket (between 40,000 sq. ft and 100,000 sq. ft). Aditya Birla Retail has about 7,000-8,000 employees, Barua said.
More has been giving massive discounts on its stores in the last one month, said a consumer who frequents the store in Andheri East, a Mumbai suburb, adding that the store has been shut effective Saturday.
That the developments have been sudden can be gauged from the fact that the company was hiring till about six months ago.
An executive who was hired from abroad a few months ago said the company has shifted focus following a change at the top management. He did not want to be identified.
Barua denied that the change in management has anything to do with the new strategy. “This is all a part of the process. Change in people need not lead to a change in strategy,” he said.
High rents and rising debt have affected all large organized retailers in India. Rising food prices have also weaned away consumers from this format.
On 21 February, Aditya Birla Retail’s Rs.100 crore loan was not renewed by UCO Bank, according to documents on the registrar of companies website.
Organized retail accounts for less than 8% of the overall Rs.450000.000 Millions retail industry of India. In food and groceries retail, the largest segment within organized retail, small-store retail format—similar to the pop-and-mom stores of traditional retail—has seen its total share decline as retailers such as Subhiksha Trading Services Limited and Spinach, run by Wadhawan Food Retail Private Limited, shut stores following the financial crisis in 2009.
“Retailers have yet not got the supermarkets format right,” said Arvind Singhal, chairman of Delhi-based retail advisory firm Technopak Advisors Private Limited, while explaining that retailers have expanded their geographic footprint rapidly, carry too much merchandise, and have frequent management changes. These have added to complexities of the business.
Like Aditya Birla Retail, Reliance Retail Limited, too, is increasingly focusing on hypermarket retail for growth.
“Supermarket retail accounts for 50% of the overall organized food and groceries retail. I would not rule this format out completely, but whether it will account for 20% or 40% of the overall food and groceries retail in the future, that we will have to see,” said Abheek Singhi, leader, consumer practice India, partner and director at the Boston Consulting Group, a consultancy firm.
ADITYA BIRLA
RETAIL TO OPEN SIX HYPERMARKET ‘MORE.MEGASTORES’ IN FY13
MAY 11 2012
As per reports in the media, Aditya Birla Retail Limited (ABRL) is
investing Rs.900.000 Millions to launch six hypermarket format stores under its
brand `more.Megastores' in this fiscal. Each of these hypermarkets of about
60,000 sqft, will require an investment of about Rs.150.000 Millions and would
be set up in Bangalore, Delhi and Hyderabad. Russell Berman, CEO Hypermarkets
division, ABRL was reported to have said that the company is also experimenting
with smaller format stores. The plans are to open more stores in newer cities
such as Kolkata, for a pan India presence. At present ABRL has a maximum
operation in the south of India. Eventually, the plans are to expand to
locations in tier 2 towns. Already there are two stores in the cities of
Vadodara and and Nashik.
MORE OF MORE: ADITYA BIRLA RETAIL BACK ON TRACK
MAY 29, 2012
The ‘More’ brand stores of Aditya Birla Retail
Limited seems to be getting back on track after losing its way briefly, which
led to its closing 200 stores a few years ago. At its peak, ABRL had 656
supermarket stores in 2008-09. The company’s new CEO Pranab Barua credits the
turnaround to ‘doing small things right’. While the company started this
financial year with just under 500 More stores, ABRL looks to cross 600 mark
this year, and plans to open 80-100 stores per year over the next 3 years.
“We are in a much better position than in
2008,” said Barua, refusing to put a timeline to profitability. “Adding new
stores will continue to be a way of life.
“We have a robust network now and hope to grow
the same in chosen clusters to strengthen synergies,” said Barua. “The stores
we have now are well poised to provide the highest standards of products and
great service to our customers.”
After the 2008-09 period, the company went through
a period of store rationalisation and re-worked strategies that primarily
included bringing down its real estate costs and expansion in the right
geographies.
The retail firm is also looking at scaling up
its hypermarket business, a segment that took time to take off and now every
retailer is plugging to it.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sou rces
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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 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.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN / VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
- |
|
--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 |
|
30 |
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.