MIRA
INFORM REPORT
|
Report Date : |
08.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE LEISURES LIMITED |
|
|
|
|
Registered
Office : |
3rd Floor, Court House, Lokmaya Tilak Marg, Dhobi Talao, Mumbai-400002,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
30.10.2007 |
|
|
|
|
Com. Reg. No.: |
11-175533 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.10.500 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U52100MH2007PLC175533 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Retail Activities |
|
|
|
|
No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
-- |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Reliance Retail Limited’. It is an established company having a
moderate track record. It has recorded better growth in its revenue from operations during
2012 but has incurred loss. There appear huge accumulated losses and external borrowings recorded
by the company. However, it receives better support from its group companies. Trade
relations are reported as fair. Business is active. Payment terms are 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.
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
Management non co-operative
LOCATIONS
|
Registered Office : |
3rd Floor, Court House, Lokmaya Tilak Marg, Dhobi Talao, Mumbai-400002,
Maharashtra, India |
|
Tel. No.: |
91-22-44770000 / 44776602 / 44774000 / 67673800 / 44771877 |
|
Fax No.: |
Not Available |
|
E-Mail : |
DIRECTORS
AS ON 01.08.2012
|
Name : |
Mr. Ramesh Kumar Damani |
|
Designation : |
Director |
|
Address : |
403, 4th Floor, USha Kung, 30 D Juhu Koliwada, Santacruz,
Mumbai-400049, Maharashtra, India |
|
Date of Birth/Age : |
06.05.1971 |
|
Date of Appointment : |
06.12.2007 |
|
DIN No.: |
00049764 |
|
|
|
|
Name : |
Mr. Bijou Kurien |
|
Designation : |
Director |
|
Address : |
#33/2, Grant Road, Bangaloe-560001, Karnataka, India |
|
Date of Birth/Age : |
17.01.1959 |
|
Date of Appointment : |
06.12.2007 |
|
DIN No.: |
01802995 |
|
|
|
|
Name : |
Mr. Jayraj Sampatrai Sheth |
|
Designation : |
Director |
|
Address : |
Anand Mahal, 2nd Floor, Babulnath Road, Mumbai-400007,
Maharashtra, India |
|
Date of Birth/Age : |
06.05.1961 |
|
Date of Appointment : |
14.10.2010 |
|
DIN No.: |
03290577 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 01.08.2012
|
Names of Shareholders |
No. of Shares |
|
Sudhakar Saraswatula Jointly with Reliance Fresh Limited, India |
1 |
|
Madhavan Ganesan Jointly with Reliance Fresh Limited, India |
1 |
|
A Ramawamy Jointly with Reliance Fresh Limited, India |
1 |
|
Reliance Fresh Limited, India |
1049994 |
|
Rejendra Madhav Kamath Jointly with Reliance Fresh Limited, India |
1 |
|
Subramaniam Venkatachaiam Jointly with Reliance Fresh Limited, India |
1 |
|
Sridhar Kothandaraman Jointly with Reliance Fresh Limited, India |
1 |
|
TOTAL
|
1050000 |
AS ON 01.08.2012
|
Equity Shares
Break Up |
Percentage of Holding |
|
Bodies corporate |
100.00 |
|
TOTAL |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Retail Activities |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountant |
|
Address : |
714-715, Tulsiani Chambers 212, Nariman Point Mumbai 400021,
Maharashtra, India |
|
PAN No.: |
AAAFC0662N |
|
|
|
|
Ultimate Holding Company : |
Reliance Industries Limited CIN No.:- L17110MH1973PLC019786 |
|
|
|
|
Holding company : |
Reliance Retail Limited CIN No.:- U17120MH1998PLC114010 Reliance Trends Limited CIN No.:- U51909MH2006PLC166165 ·
Reliance Lifestyle Holdings Limited (Up to 30th
January, 2012) ·
Reliance Fresh Limited (Up to 30th January, 2012) |
|
|
|
|
Fellow Subsidiaries : |
Reliance Fresh Limited CIN No.:- U01100MH1999PLC120563 Reliance Gems
and Jewels Limited CIN No.:-
U25199MH1998PLC114011 Reliance
Lifestyle Holdings Limited CIN No.:-
U01403MH2007PLC172415 Delight Proteins
Limited CIN No.:-
U74140MH2000PLC128371 Reliance Supply
Chain Solutions Limited CIN No.:-
U52190MH2007PLC175508 Reliancedigital
Retail Limited CIN No.:-
U70102MH2007PLC170415 Strategic
Manpower Solutions Limited CIN No.:-
U74999MH2007PLC167704 Reliance
Footprint Limited CIN No.:-
U51101MH2007PLC171321 Reliance Digital
Media Limited CIN No.:-
U51909MH2007PLC175652 Reliance Office
Solutions Private Limited CIN No.:-
U51109MH2008PTC185092 Indiawin Sports
Private Limited CIN No.:-
U51109MH2007PTC176254 |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1050000 |
Equity Shares |
Rs.10/- each |
Rs. 10.500 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1050000 |
Equity Shares |
Rs.10/- each |
Rs. 10.500 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
10.500 |
10.500 |
0.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
(214.270) |
(104.922) |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(97.335) |
|
|
NETWORTH |
(203.770) |
(94.422) |
(96.835) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
1475.019 |
902.148 |
524.912 |
|
|
TOTAL BORROWING |
1475.019 |
902.148 |
524.912 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1271.249 |
807.726 |
428.077 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
534.075 |
305.383 |
164.614 |
|
|
Capital work-in-progress |
88.943 |
44.452 |
85.103 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.075 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
102.131 |
50.292 |
36.088 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
662.668
|
466.401 |
220.388 |
|
|
Sundry Debtors |
15.609
|
30.044 |
5.487 |
|
|
Cash & Bank Balances |
6.631
|
3.915 |
2.850 |
|
|
Other Current Assets |
0.028
|
0.002 |
0.000 |
|
|
Loans & Advances |
180.490
|
110.777 |
38.209 |
|
Total
Current Assets |
865.426
|
611.139 |
266.934 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
248.803
|
170.710 |
124.059 |
|
|
Other Current Liabilities |
65.546
|
31.881 |
0.000 |
|
|
Provisions |
5.052
|
0.949 |
0.607 |
|
Total
Current Liabilities |
319.401
|
203.540 |
124.666 |
|
|
Net Current Assets |
546.025
|
407.599 |
142.268 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.004 |
|
|
|
|
|
|
|
|
TOTAL |
1271.249 |
807.726 |
428.077 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
966.727 |
665.440 |
442.740 |
|
|
|
Other Income |
0.285 |
0.160 |
0.099 |
|
|
|
TOTAL (A) |
967.012 |
665.600 |
442.839 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
883.867 |
705.794 |
|
|
|
|
Employee benefit expense |
47.545 |
22.732 |
|
|
|
|
Other expenses |
349.410 |
179.678 |
|
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(194.432) |
(244.254) |
|
|
|
|
TOTAL (B) |
1086.390 |
663.950 |
492.290 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(119.378) |
1.650 |
(49.451) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.148 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(119.526) |
1.650 |
(49.451) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
41.661 |
23.441 |
18.504 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(161.187) |
(21.791) |
(67.955) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(51.839) |
(14.204) |
(15.926) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(109.348) |
(7.587) |
(52.029) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(104.922) |
(97.335) |
(45.306) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(214.270) |
(104.922) |
(97.335) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
0.000 |
0.392 |
0.835 |
|
|
|
Capital Goods |
5.591 |
1.898 |
0.490 |
|
|
TOTAL IMPORTS |
5.591 |
2.290 |
1.325 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(104.14) |
(30.02) |
(1040.57) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(11.31)
|
(1.14) |
(11.75) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(16.67)
|
(3.27) |
(15.35) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.73)
|
(2.25) |
(14.53) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.79
|
0.23 |
0.70 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(7.24)
|
(9.55) |
(5.42) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.71
|
3.00 |
2.14 |
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) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
No |
|
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 |
No |
FACILITIES
|
UNSECURED LOAN |
Rs.
In Millions 31.03.2012 |
Rs.
In Millions 31.03.2011 |
|
Loans and advances from related parties |
1471.972 |
902.148 |
|
Long term maturities of finance lease obligation |
3.047 |
0.000 |
|
|
|
|
|
TOTAL |
1475.019 |
902.148 |
SUNDRY CREDITORS
DETAILS
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Sundry Creditors
|
248.803
|
170.710 |
124.059 |
|
|
|
|
|
|
TOTAL |
248.803
|
170.710 |
124.059 |
OPERATIONAL REVIEW
The Company presently
operates 38 ’Reliance Timeout’ stores which are a popular destination of books,
music, movies and stationery enthusiasts. Reliance Timeout stores offer a wide
choice of items to meet the varied tastes and requirements of the shoppers and
also provide services such as Kid’s play area, Reading Bar and Sound Domes in
an exciting setting and ambience. Reliance Timeout stores also hosts numerous
book launches and events throughout the year. The Company would continue to
expand its network of stores in the coming months.
FIXED ASSETS
·
Plant and Machinery
·
Leasehold Land
·
Electric Installation
·
Equipments
·
Furniture and
Fixtures
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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. 54.73 |
|
|
1 |
Rs. 82.14 |
|
Euro |
1 |
Rs. 71.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.