MIRA INFORM REPORT

 

 

Report Date :

19.02.2013

 

IDENTIFICATION DETAILS

 

Name :

METRO SHOES LIMITED [w.e.f. 14.05.2007]

 

 

Formerly Known As :

METRO SHOES PRIVATE LIMITED

 

 

Registered Office :

3rd Floor, Metro House, Shahid Bhagat Singh Road, Colaba Causeway, Mumbai-400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

19.01.1977

 

 

Com. Reg. No.:

11-19449

 

 

Capital Investment / Paid-up Capital :

Rs.48.870 Millions

 

 

CIN No.:

[Company Identification No.]

U19200MH1977PLC019449

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM19987C

 

 

PAN No.:

[Permanent Account No.]

AAACM4754E

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Subject Engaged in Trading of Footwear, Bags and Accessories.

 

 

No. of Employees :

Information denied by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 5210000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having a good track record. The latest financials are not made available with the government department.

 

As per previous year’s, the financial position of the company appears to be strong. Liquidity position of the company is good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered for normal business dealings at usual trade terms and conditions.

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

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.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Hemant Mishra

Designation :

Assistant Accounts Manager

Contact No.:

91-22-66560400

Date :

14.02.2013

 

 

LOCATIONS

 

Registered / Corporate Office :

3rd Floor, Metro House, Shahid Bhagat Singh Road, Colaba Causeway, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-66560444/66560400

Fax No.:

91-22-66560490

E-Mail :

accounts@metroshoe.com

metroshoes@vsnl.com

info@metroshoe.com

Website :

http://www.metroshoes.net

 

 

Factory 1 :

Jetha Compound, Opposite Byculla Goods Depot, Dr. B. Ambedkar Road, Byculla, Mumbai-400027, Maharashtra, India

 

 

Factory 2 :

Gala No. 6-10, Building No. C-9, Shri Arihant Compound, Kalher, Bhiwandi, Thane, Maharashtra, India

 

 

Factory 3 :

Gala No. 8-10, Building No. I-4, Shri Arihant Compound, Kalher, Bhiwandi, Thane, Maharashtra, India

 

 

Showrooms :

Located At:

 

Mumbai

Vijaywada

Thane

Chandigarh

Kalyan

Ludhiana

Navi Mumbai

Amritsar

Pune

Patiala

Nashik

Jalandhar

Nagpur

Baroda

Aurangabad

Ahmedabad

Nanded

Surat

Delhi

Rajkot

Kolkata

Jamnagar

Chennai

Lucknow

Coimbatore

Meerut

Madurai

Kanpur

Salem

Noida

Puducherry

Varanasi

Bangalore

Ghaziabad

Mangalore

Allahabad

Hyderabad

Gorakhpur

Secunderabad

Indore

Bhopal

Ambala

Jabalpur

Guwahati

Gwalior

Raipur

Kochi

Jodhpur

Calicut

Jaipur

Gurgaon

Dehradun

 

 

DIRECTORS

 

AS ON 21.09.2012

 

Name :

Mr. Rafique Abdul Malik

Designation :

Chairman cum Managing Director

Address :

Flat No.23/C, 20th Floor, Kanchanjunga, 72 Pedder Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

30.10.1950

Date of Appointment :

05.02.1987

Din No.:

00521563

 

 

Name :

Mr. Aruna Bhagawan Advani

Designation :

Director

Address :

6/65, Shyam Nivas, Bhulabhai Desai Road,  Mumbai – 400026, Maharashtra, India

Date of Appointment :

27.07.2010

Din No.:

00029256

 

 

Name :

Mr. Utpal Hemendra Sheth

Designation :

Alternate Director

Address :

B -27, Kumkum Apartment, Near Nanavati Hospital, S. V. Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

20.06.1971

Date of Appointment :

14.03.2007

Din No.:

00081012

 

 

Name :

Mr. Aziza Rafique Malik

Designation :

Whole Time Director

Address :

Flat No.23/C, 20th Floor, Kanchanjunga, 72 Pedder Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

05.04.1950

Date of Appointment :

01.04.2007

Din No.:

00167534

 

 

Name :

Mr. Manojkumar Madangopal Maheshwari

Designation :

Director

Address :

Maheshwari House, 36 L Jagmohandas Marg, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

08.08.1957

Date of Appointment :

24.07.2009

Din No.:

00012341

 

 

Name :

Mr. Jalaluddin Jafferali Kamdar

Designation :

Whole Time Director

Address :

A-41, Yuwan Apartments, 413/414, Mount Mary Road, Bandra West, Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

21.11.1947

Date of Appointment :

01.04.2007

Din No.:

00521677

 

 

Name :

Mr. Farah Malik Bhanji

Designation :

Whole Time Director

Address :

203, Samudra Gaurav Apartments, 6A, Abdul Gaffar Khan Road, Worli Sea Face, Worli, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

31.08.1976

Date of Appointment :

01.04.2007

Din No.:

00530676

 

 

Name :

Mr. Rakesh Radheyshyam Jhunjhunwala

Designation :

Director

Address :

3 Sital Sagar, Sital Baug, 64, Walkeshwar Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

05.07.1960

Date of Appointment :

14.03.2007

Din No.:

00777064

 

 

KEY EXECUTIVES

 

Name :

Mr. Hemant Mishra

Designation :

Assistant Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 21.09.2012

 

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

 

AS ON 29.09.2012

 

Names of Allottees

 

No. of Shares

Rakesh Banarasi Singh

 

10

Jalaludin Jafferail Kamdar

 

750

Sohel Jalaludin Kamdar

 

750

Jaiprakash Janardan Desai

 

750

Mehdi Sumar

 

225

Ketan Arun Kothari

 

225

Premnath Batuknath Satsangi

 

225

Prashant Praful Shah

 

1500

Subhash Krishna Rao

 

500

Mahesh Brijgopal Goud

 

155

Lavina Rodnques Pinto

 

460

 

 

 

TOTAL

 

5550

 

AS ON 21.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

99.32

Other top fifty shareholders

 

0.58

Others

 

0.10

TOTAL

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject Engaged in Trading of Footwear, Bags and Accessories.

 

 

Products :

PRODUCT DESCRIPTION

ITEM CODE

 

Leather Footwear

64031990

Plastic Footwear

64021990

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by the management.

 

 

Bankers :

·         ICICI Bank Limited, 240, Navsari Building, D. N. Road, Fort Branch, Mumbai-400001, Maharashtra, India

·         Axis Bank

·         HDFC Bank Limited

·         Standard Chartered Bank

·         State Bank of India

·         Yes Bank

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sajid A. Pancha and Company

Chartered Accountant

Address :

5, Tardeo A. C. Market, first Floor, Mumbai – 400034, Maharashtra, India

Tel. No.:

91-22-23511023

Fax No.:

91-22-23520970

PAN No:

AAAPM6842Q

 

 

Subsidiaries :

Metmill Footwear Private Limited

 

 

Other Related Parties :

·         Metro Shopping Arcade Private Limited

·         Metro Shopping Plaza Private Limited

·         Design Matrix Associates Private Limited

 

 

CAPITAL STRUCTURE

 

AFTER 21.09.2012

 

Authorised Capital : Rs.150.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.147.107 Millions

 

 

AS ON 21.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity Shares

Rs.10/- each

Rs.150.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4898025

Equity Shares

Rs.10/- each

Rs.48.980 Millions

 

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4887000

Equity Shares

Rs.10/- each

Rs.48.870 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

48.870

48.870

48.870

2] Employee Stock Options Outstanding

2.727

0.693

0.000

3] Reserves & Surplus

1252.821

936.163

738.504

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1304.418

985.726

787.374

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

13.452

9.000

7.108

 

 

 

 

TOTAL

1317.870

994.726

794.482

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

386.657

260.485

188.457

Capital work-in-progress

21.022

19.495

8.965

 

 

 

 

INVESTMENT

215.274

281.751

101.664

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

994.247

659.359

500.276

 

Sundry Debtors

18.449

11.688

8.147

 

Cash & Bank Balances

27.987

15.091

127.168

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

376.994

280.403

206.709

Total Current Assets

1417.677

966.541

842.300

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

376.894

299.326

166.357

 

Other Current Liabilities

63.534

36.959

36.634

 

Provisions

282.332

197.261

143.913

Total Current Liabilities

722.760

533.546

346.904

Net Current Assets

694.917

432.995

495.396

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1317.870

994.726

794.482

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

3664.443

2549.368

2074.468

 

 

Other Income

24.032

18.492

13.666

 

 

TOTAL                                     (A)

3688.475

2567.860

2088.134

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Sales

1883.271

1312.671

1101.729

 

 

Employee Cost

107.362

78.414

64.869

 

 

Administrative Expenses

158.097

117.154

94.169

 

 

Selling Expenses

859.028

602.982

485.103

 

 

Other Expenses

11.138

11.756

2.720

 

 

TOTAL                                     (B)

3018.896

2122.977

1748.590

 

 

 

 

 

Less

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

669.579

444.883

339.544

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.319

0.110

0.731

 

 

 

 

 

 

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

669.260

444.773

338.813

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

28.388

19.237

15.259

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

640.872

425.536

323.554

 

 

 

 

 

Less

TAX                                                                  (H)

210.240

142.113

113.318

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

430.632

283.423

210.236

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

186.802

39.143

57.496

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend Paid

48.870

36.653

24.435

 

 

Tax on Interim Dividend

8.117

6.229

4.153

 

 

Final Dividend Proposed

48.870

36.653

0.000

 

 

Tax on Final Dividend

8.117

6.229

0.000

 

 

Transfer to General Reserve

50.000

50.000

200.000

 

BALANCE CARRIED TO THE B/S

453.460

186.802

39.144

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

0.000

0.083

NA

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

 

 

 

Basic

88.12

58.00

83.67

 

Diluted

88.06

57.98

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

11.67

11.04

10.07

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

17.49

16.69

15.60

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

35.52

34.68

31.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.49

0.43

0.41

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.96

1.81

2.43

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

 

 

 

Sundry Creditors [Trade]

288.044

222.116

120.417

Sundry Creditors [Others]

88.850

77.210

45.940

Total

376.894

299.326

166.357

 

 

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

Yes

10]

Designation of contact person

Yes

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

No

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

No

30]

Major Shareholders, if available

Yes

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

BUSINESSPERFORMANCE:

 

The Company continued its strong performance during the year and recorded gross sales of Rs. 4120.100 Millions against Rs. 2858.900 Millions in the previous year, thereby achieving a growth of 44.1% over the previous year.

 

Profit before Tax (PBT) for the year was Rs. 640.800 Millions (Previous Year Rs. 425.500 Millions) and Profit after Tax (PAT) of Rs. 430.600 Millions (Previous Year Rs. 283.400 Millions), improved by 50.6 % and 51.9% respectively.

 

Strong underlying economic growth, increasing wealth of individuals and the rapid construction of organized retail infrastructure are key factors behind the explosive growth in Company’s Sales.

 

During the year, the Company opened 57 new showrooms in the cities of Ahmedabad, Allahabad, Amritsar, Aurangabad, Bangalore, Baroda, Bhopal, Chennai, Coimbatore, Dehradun, Delhi, Ghaziabad, Gorakhpur, Guwahati, Gwalior, Hyderabad, Jabalpur, Jaipur, Jalandhar, Jamnagar, Kanpur, Kochi, Kolkata, Lucknow, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nanded, Navi Mumbai, Patiala, Pune, Raipur, Rajkot, Salem, Varanasi and Vijayawada.

 

Company’s Showrooms at Mall Road, Ludhiana and Wallajah Road, Chennai have been renovated during the year. The Company has changed the location of the showroom at South Extension, Delhi.

 

The Value line shop format was expanded with combined openings of more standalone shops and shop-in-shop with D’Mart and Spencer, leading value retail chains of India. The format has achieved sales of Rs. 86.000 Millions thereby contributing 2.09% to the total turnover of the Company. The Company had 21 shops in Value line format out of which 9 were standalone and rest under shop-in-shop.

 

The online sales portal www.metroshoes.net has achieved sales of Rs.1.973 Millions during the year. Full potential of E-Com business is expected to be tapped in the coming years.

 

During the Current Year, the Company has opened 18 stores in the cities of Ahmedabad, Dehradun, Sri Ganganagar, Ghaziabad, Hyderabad, Kolkata, Mumbai, Patna, Siliguri, Ujjain and Visakhapatnam.

 

The store at Indira Gandhi International Airport, New Delhi (Company’s first store at an Airport) was closed as the location was required for International airline operations. Despite small in size, the Showroom not only performed very well but also provided a new experience in airport retailing to the Company. The Company has been making efforts to seek alternate space at Delhi Airport.

 

Total no. of Company’s stores has now reached to 179 out of which 159 are standalone stores and 20 are shop-in-shop. The Company’s business operations have now expanded to 53 cities and 2 union territories of India. The Company has recorded sales of Rs. 1136.000 Millions during the first quarter of the Current Year achieving a growth of 34.93% compared to same period of last year. In order to meet the business requirement a large warehouse having a carpet area of 50,000 sq. ft. has been taken on lease at Dive (Anjur) Village, Bhiwandi.

 

SUBSIDIARYCOMPANY:

 

Metmill Footwear Private Limited, 51% subsidiary of the Company has also reported good results for the year in its Shop-in-shop business with Shoppers Stop and Pantaloon, leading retail chains of India. Pursuant to Section 212 (8) of the Companies Act, 1956 read with the General Circular No. 2/2011 dated 8th February 2011; consent of the Board has been obtained for not attaching the Balance Sheet of the Company’s subsidiary – Metmill Footwear Private Limited

 

MANAGEMENT DISCUSSIONANDANALYSIS:

 

OVERVIEW

 

The recovery from recession was slow in most of the Developed countries and a few countries faced debt crisis. The Foreign investment inflow declined by 17% compared to the year 2009-10. However the Indian economy performed well during the last year, particularly in the first 3 Quarters, despite adverse conditions globally. The Exports showed a phenomenal growth of over 37% and Foreign Exchange Reserves crossed $300 billion. The Company achieved record growth in number of showrooms, sales and profitability during the year.

 

BUSINESS REVIEW

 

The Company performed well as the sales improved by 44.1%, PBT by 50.6% and PAT by 51.9% respectively compared to last year. During the year the Company expanded its network with 57 new showrooms and registered its presence for the first time in the cities of Allahabad, Dehradun, Ghaziabad, Gorakhpur, Guwahati, Gwalior, Jabalpur, Jamnagar, Kanpur, Madurai, Meerut, Nanded, Patiala, Raipur and Salem. The total number of Showrooms reached 162 spread across 50 cities and 2 union territories.

 

Men’s contribution was 38% in volume term and 57% in value term, whereas women’s contribution was 56% in volume term and 40% in value term. The average selling price has come down slightly from Rs. 0.001 Million (in the previous year) to Rs. 0.001 Million due to value line sales and increased share of accessories in the total sales.

 

The Company has been able to maintain the contribution of in-house brands to total sales at 73% as a result of improved merchandise, sourcing and better performance of premium in-house brands.

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

Indian economy is the 10th largest economy in terms of GDP and 4th largest economy in terms of Purchasing Power Parity (.PPP.). By 2025, in terms of GDP, India will be the fifth largest economy and by 2035 the third largest economy just behind US and China. Opening up of India’s economy, urbanization and greater infrastructure spending are the key factors for growth. Currently, Indians are amongst the most confident consumers globally. India’s consumer market which is currently the world’s thirteenth largest is expected to become fifth largest by 2030. The new age Indian consumer is confident and optimistic and spending more. He is adventurous and open to try out new products and technologies. The size of Indian retail is about Rs. 22,500 Billion. The market is mainly unorganized with share of organized market at 5%. However growth in organized market has increased from less than 2% to over 5% in the last 3 years and is projected to reach 11% by 2015. Current size of Footwear industry is around Rs. 290 billion. The share of organized market is at 35%. Market is dominated by the Economy and Value segment whereas semi formal (casual) is the most popular product. The market is very promising and challenging but price sensitive.

 

Regional sensitivity plays a vital role in India’s footwear retail market. Those retailers who understand these differences and provide the merchandise accordingly have been successful in expanding their business across India. All India Footwear Manufacturers and Retailers Association (AIFMRA) have been formed in Mumbai for promotion, support, development and protection of interests of the Footwear Industry. The Company is one of the founder members of the Association.

 

OUTLOOK

 

According to the experts, outlook for the Indian economy seems to be very good. However the competition will be stiff and the Company is taking proper steps to strengthen sourcing of quality merchandise and customer service. The Company is also starting exclusive stores for accessories under brand name .Metro accessories. And the first such store is being opened in Raipur. The results of population census are exciting for the country’s retail sector as they signify that the Country has grown considerably as regards size of consumption and the economy and there is good scope for the Company’s business in the years to come. With major initiatives in expansion, focus on value line format and e-commerce, the Company is expected to continue its growth momentum in the current year.

 

FIXED ASSETS:

 

·         Furniture and Fixture

·         Machinery and Equipment

·         Motor Car

·         Computers

·         Copy Right

·         Trademark

 

PRESS RELEASE:

 

METRO SHOES OPENS ITS 10TH STORE IN BANGALORE

 

OCTOBER 12, 2012

 

INDIA’S LARGEST FASHION FOOTWEAR STORE OPENS AT INORBIT MALL, BANGALORE

 

Today Metro Shoes celebrates the opening of its 10th store in Bangalore. Targeted at the entire family, the product range at Metro Shoes will feature style, quality and the latest international trends that appeals to all age groups.

 

“With the constant support of our loyal patrons and new customers Metro Shoes has opened its 10th store in Bangalore. The success of our previous stores has been overwhelming and the growing demand prompted us to open an additional store in the Garden city. With fashion becoming an integral part of everyone’s daily life, Metro shoes would like to give both men and women the opportunity to shop under one roof for all their needs. The 1549 sq. ft Metro Shoes store provides both casual and formal footwear for men and women, proving to be an ideal one stop solution for one’s footwear needs” says Anwar Sayani, Regional Manager, Metro Shoes.

 

A superb amalgamation of modern styling and rich Indian heritage, Metro Shoes provides a one stop destination for all footwear needs; making it a must have accessory in the wardrobe of every fashion aficionado including Bollywood Stars. Keeping this perfect synergy in mind, Metro Shoes has on board the uber-glamourous couple of Saif and Kareena as their new brand ambassadors.

 

The newly inaugurated store stocks more than 10,900 pairs of ladies’, men’s and kid’s shoes.  Metro Shoes has 100 new designs which come in every month, making sure that every time a customer walks in they have something new to see. To celebrate the opening, Metro Shoes today announced a 20% discount on all in-house brands and 10% discount on international brands like Florsheim, Lee Cooper, Red Tape, Bulchee, Fila, and Franco Leone and Ganuchi on Friday and Saturday (12th – 13thOctober 2012).

 

“Bangalore has been a very successful market for Metro Shoes since its inception in 1993 and we take this opportunity to mark our success with a grand opening of the 10th store. Customers from Shantiniketan Colony, Whitefield, Marachalli, K. R. Puram, Indranagar have been visiting our stores and with the help of this store, we are sure to amplify our presence. Casual and formal shoes are huge sellers in this region and we are sure to have every customer walking into our store delighted by the range” added Anwar Sayani, Regional Manager, Metro Shoes.

 

As in all Metro Shoes stores, the product range is customized to fit local tastes and fashion trends. Men’s shoes are priced from Rs. 1090 onwards while ladies’ shoes start from Rs. 590 onwards. Metro Shoes also houses men’s and women’s accessories such as handbags, wallets, belts and shoe care products ranging from Rs. 300.

 

 

 


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 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.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

54

 

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.