MIRA INFORM REPORT

 

 

Report Date :

17.06.2013

 

IDENTIFICATION DETAILS

 

Name :

RAINBOW RETAIL CHAIN PRIVATE LIMITED

 

 

Registered Office :

22/1, Alipore Road, Ground Floor, Kolkata – 700027, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

28.03.2011

 

 

Com. Reg. No.:

21-161291

 

 

Capital Investment / Paid-up Capital :

Rs.1.072 Millions

 

 

CIN No.:

[Company Identification No.]

U52390WB2011PTC161291

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing of Non Woven Bags.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 160000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a relatively new company having a moderate track record.

 

In its first year of business operations company has achieved sizeable turnover but the profit margin appears to be low.

 

Trade relations are fair. Business is active. Payment terms are reported as slow but correct.

 

The company can be considered for business dealings with some caution.  

 

NOTES:

 

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

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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. Harsh Kothari

Designation :

Chief Executive Officer

Contact No.:

91-9007841111

Date :

07.06.2013

 

 

LOCATIONS

 

Registered Office :

22/1, Alipore Road, Ground Floor, Kolkata – 700027, West Bengal, India

Tel. No.:

91-33-32918989

Mobile No.:

91-9007841111 (Mr. Harsh Kothari)

Fax No.:

91-33-40016364

E-Mail :

abhishek.kothari@hotmail.com

Prakashdamani@ddgroup.net.in

 

 

Factory :

P-32, Kasba Industrial Estate, Phase – 1, DD House, 2nd Floor, Kolkata – 700107, West Bengal, India

 

 

DIRECTORS

 

(AS ON 28.09.2012)

 

Name :

Mr. Abhishek Kothari

Designation :

Director

Address :

22/1, Alipore Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

06.11.1978

Date of Appointment :

28.03.2011

DIN No.:

00608692

 

 

Name :

Mr. Raj Kumar Damani

Designation :

Director

Address :

22/1, Alipore Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

31.08.1960

Date of Appointment :

28.03.2011

DIN No.:

00688568

 

 

Name :

Mrs. Rita Damani

Designation :

Director

Address :

118, Dr. Meghnad Saha Sarani, 5th Floor, Flat – 5A, Kolkata – 700029, West Bengal, India

Date of Birth/Age :

11.08.1963

Date of Appointment :

28.03.2011

DIN No.:

01166730

 

 

KEY EXECUTIVES

 

Name :

Mr. Harsh Kothari

Designation :

Chief Executive Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 28.09.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Abhishek Kothari

 

3333

Raj Kumar Damani

 

3333

Rita Damani

 

3334

Damani Polymers Private Limited, India

 

32400

Kanchan Devi Kothari

 

5000

Kippy Engineering Private Limited, India

 

27400

Magestic Vyapaar Private Limited, India

 

5000

Saket Traders Private Limited, India

 

5000

Genesis Tie-up Private Limited, India

 

22400

 

 

 

Total

 

 

107200

 

 

(AS ON )

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Bodies corporate

 

86.01

Directors or relatives of directors

 

9.33

Other top fifty shareholders

 

4.66

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Non Woven Bags.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         HDFC Bank Limited

Baguihati, Kolkata, West Bengal, India 

 

 

Facilities :

--

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Shankar Saraf and Associates

Chartered Accountant

Address :

11, Dacres Lane, 1st Floor, Kolkata – 700069, West Bengal, India

Tel No.:

91-33-22624441/2

Fax No.:

91-33-22624443

Mobile No.:

91-9830115539

PAN No.:

ALEPS2178N

Email :

shankar@ssa.co.in

 

 

Company in which KMP/ Relatives of KMP can exercise Significant influence :

·         Damani Polymers Private Limited

·         Kippy Engineering Private Limited

·         Jiwansagar Niketan Private Limited

·         Genesis Tie-Up Private Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 28.09.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

250000

Equity Shares

Rs.10/- each

Rs.2.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

107200

Equity Shares

Rs.10/- each

Rs.1.072 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

1.072

(b) Reserves & Surplus

 

 

38.578

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

 

 

 

 

(3) Non-current liabilities

 

 

 

(a) long-term borrowings

 

 

23.432

(b) Deferred tax liabilities (Net)

 

 

0.000

(c) Other long term liabilities

 

 

0.000

(d) long-term provisions

 

 

0.000

 

 

 

 

(4) Current liabilities

 

 

 

(a) Short term borrowings

 

 

0.000

(b) Trade payables

 

 

19.790

(c) Other current liabilities

 

 

1.942

(d) Short-term provisions

 

 

0.609

TOTAL

 

 

 

85.423

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

11.697

(ii) Intangible Assets

 

 

0.000

(iii) Capital work-in-progress

 

 

0.000

(iv) Intangible assets under development

 

 

0.000

(b) Non-current Investments

 

 

0.000

(c) Deferred tax assets (net)

 

 

0.000

(d)  Long-term Loan and Advances

 

 

9.931

(e) Other Non-current assets

 

 

0.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

0.000

(b) Inventories

 

 

43.622

(c) Trade receivables

 

 

11.743

(d) Cash and cash equivalents

 

 

4.897

(e) Short-term loans and advances

 

 

3.473

(f) Other current assets

 

 

0.060

TOTAL

 

 

 

85.423

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

 

31.03.2012

 

SALES

 

 

 

 

 

Revenue from Operations

 

 

150.941

 

 

Other Income

 

 

0.890

 

 

TOTAL                                     (A)

 

 

151.831

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Traded Goods

 

 

90.838

 

 

Change in Stock in Trade

 

 

8.959

 

 

Employee Benefit Expenses

 

 

5.320

 

 

Other Expenses

 

 

38.107

 

 

TOTAL                                     (B)

 

 

143.224

 

 

 

 

 

Less

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

 

 

8.607

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

4.881

 

 

 

 

 

 

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

 

 

3.726

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

2.447

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

 

1.279

 

 

 

 

 

Less

TAX                                                                  (H)

 

 

0.609

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

 

0.670

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

 

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

 

0.670

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

6.25

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2012

PAT / Total Income

(%)

 

 

0.44

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 

0.85

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

 

1.50

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

 

0.03

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

 

0.59

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

2.86

 


 

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

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last one years

Yes

12]

Profitability for last one 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

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

No

 

UNSECURED LOANS

 

Particulars

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

Loans and Advances from Directors and Relatives

11.433

Loans and Advances from Body Corporate

11.999

 

 

Total

 

23.432

 

 

NOTE:

 

The Registered office of the company has been shifted from 22/1, Alipore Road, Kolkata – 700027, West Bengal, India to the present address w.e.f. 16.05.2011.

 

 

CORPORATE INFORMATION

 

Rainbow Retail Chain Private Limited is a private company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Being a private company, its shares are not listed on any stock exchanges in India. The company is engaged in the retail business of all products of Reebok India Company and Levis Strauss India Private Limited and manufacturing of non woven bags. The company caters only to domestic markets.

 

 

BUSINESS TAKEOVER

 

The company has taken over the business of erstwhile Rainbow Impex on a going concern basis with effect from 1st April, 2011. All the assets and liabilities of Rainbow Impex have been incorporated at their respective book values in pursuance to the agreement between the parties as on 1st April, 2011.

 

 

FIXED ASSETS:

 

·         Air Condition

·         Aquaguard

·         Camera

·         Computer

·         Computer Software

·         Electrical Installation

·         Furniture and Fixture

·         Generator

·         Interior Decoration

·         Machinery

·         Mobile Phone

·         Music System

 


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 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.57.74

UK Pound

1

Rs.90.64

Euro

1

Rs.77.02

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLV

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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.